Patrick

Appellant Maryland Casualty Company challenges a judgment, in an action for bad faith handling of an insurance claim, assessing compensatory damages of $461,239 and punitive damages of $250,000 against it. In the published portions of this opinion, we conclude that the jury should have been instructed to consider the comparative fault of the parties in assessing damages, and that it was reversible error to refuse appellant’s preferred instructions on the issue. Further, there was no substantial evidence of malice, fraud, or oppression sufficient to warrant the imposition of punitive damages. In the unpublished portions of this opinion we address other issues peculiar to the facts of this case, which we conclude should not change the results reached in the published portions of the opinion. We, therefore, reverse the judgment and remand for a new trial under proper instructions.

I. Facts and Procedural History

In 1982, Farris Patrick (hereafter respondent) had homeowners insurance on his house issued by appellant insurance company. He had made previous insurance claims for minor property damage, and was satisfied with appellant’s handling of those matters.

In December…