$19 Million In Punitive Damages Reduced To $350,000.

Plaintiff served in the U.S. Marines and is entitled to medical care at Veterans Administration hospitals at no cost. He was involved in an accident in 1997 and was paralyzed from the waist down and relies on a wheelchair. In 2008, he was involved in a wheelchair accident and suffered a broken leg, but had numerous internal complications and remained hospitalized for 109 days. He sent a claim to his insurance company. His policy contained an insuring clause which states: ‘“Accidental Daily Hospital Confinement Benefit’: ―We will pay the Daily Hospital Confinement Benefit stated on the Schedule Page for each day of Confinement due to a covered injury, beginning with the first day of Confinement. A Covered Person must be under the professional care of a Physician, and such Confinement must begin within 90 days of the accident causing the injury.” The insurance company concluded hospitalization was necessary for only 18 days, and paid for those days only. Plaintiff’s doctor sent a letter to the insurer which stated: “The fracture was complicated by extensive swelling, infection, blistering, and muscle damage that required acute hospitalization, intravenous fluids and antibiotics, and full staff support including consultation with an orthopedic surgeon. The infection and blistering subsided as [plaintiff] completed his antibiotics on March 1, 2008. During this time, the right leg was placed in a Long Beach Splint, kept elevated and fully extended. [Plaintiff] was living alone and could not have been discharged safely at that time. The orthopedic consultants recommended that he remain supine in bed or gurney and did not clear him for wheelchair use until March 24, 2008. He did not have an available caregiver that could provide bedside care at home during this period. They also recommended that his fractured leg be kept fully extended in the splint (no flexion permitted) to allow healing. They did not lift this restriction until May 5, 2008. His home has narrow doorways and corners he could not have managed in his wheelchair if his leg was fully extended.” Eventually the matter ended up in trial where a jury awarded $19 million in punitive damages against the insurer. The trial judge ordered a remittitur of that award to $350,000 based on a ratio of punitive to compensatory damages of 10:1.  In affirming, the appellate court stated: “After weighing all of the relevant factors and circumstances pursuant to State Farm Mut. Automobile Ins. Co. v. Campbell (2003) 538 U.S. 408. [123 S.Ct. 1513; 155 L.Ed.2d 585] (State Farm) and Simon v. San Paolo U.S. Holding Co., Inc. (2005) 35 Cal.4th 1159, [113 P.3d 63; 29 Cal.Rptr.3d 379] (Simon), we hold the trial court’s remittitur of punitive damages was proper.” Nickerson v. Stonebridge Life Ins. Co. (Cal. App. Second Dist., Div. 3; August 29, 2013.) 219 Cal.App.4th 188.