WEST AMERICAN INSURANCE COMPANY v. FREEMAN (1996)

Review in the above-entitled appeal is limited to the punitive damages issues.   The parties are asked to submit briefs addressing the following issues:

1. Were punitive damages impermissibly awarded on the ground that West American Insurance Company had acted in bad faith in advancing a novel legal theory?

2. Was the punitive damage award excessive because it was based on passion and prejudice?  (See Downey Savings & Loan v. Ohio Casualty Ins. Co. (1987) 189 Cal.App.3d 1072, 1099, 234 Cal.Rptr. 835.)

3. Was the punitive damage award excessive in light of West American's financial condition?  (See Adams v. Murakami (1991) 54 Cal.3d 105, 284 Cal.Rptr. 318, 813 P.2d 1348;  Egan v. Mutual of Omaha Ins. Co. (1979) 24 Cal.3d 809, 169 Cal.Rptr. 691, 620 P.2d 141.)