California Jury Awards $18 Million in Bad Faith Insurance Case

In a significant legal victory, a San Bernardino County jury has awarded Jennifer Garnier and Angela Toft, residents of Pinon Hills, California, $18 million in damages. This decision comes after their insurance carrier, American Reliable Insurance Co., underpaid a claim related to flood damages sustained during a February 2019 storm. The sisters initially filed a lawsuit in September 2020, claiming their home was left uninhabitable due to water and mud damage affecting critical systems and structural integrity.

The trial, which lasted six weeks, concluded with the jury awarding $6 million for pain and suffering and an additional $12 million in punitive damages. According to their attorney, Michael Hernandez, the insurance company and its parent, Global Indemnity, initially only compensated the sisters $5,000, significantly less than the over $100,000 needed for repairs as estimated by contractors. It wasn’t until October 2023, amidst ongoing litigation, that Global Indemnity paid the full policy amount of $140,000, acknowledging an oversight in handling the sisters’ living conditions.

The case highlighted issues with the insurance process, including claims of poor communication and neglect of detailed claims information. This lawsuit underscores the potential repercussions for insurance companies acting in bad faith and the judicial system’s role in addressing such grievances.