Petrak

Summary

This appeal concerns the liability of a claims adjuster, Edwin Petrak (Petrak), hired by Sentry Insurance Co. (Sentry) to determine Sentry’s contractual obligation as an insurer to the owners of a building damaged by fire. Petrak improperly concealed and distorted evidence regarding his investigation and Sentry, in reliance on the investigation, sued a tenant in the building, Jacques Interiors (Jacques), for subrogation.

During discovery for the subrogation action, what Petrak had done was revealed, and Sentry voluntarily dismissed its cross-complaint against Jacques. Jacques then sued Petrak and his company, Top Claims Service, Inc. (Top Claims), for malicious prosecution.

Petrak and Top Claims appeal from a judgment of $ 150,000 in compensatory damages and $100,000 in punitive damages awarded against them in favor of respondent Jacques.

We conclude that there is substantial evidence supporting the jury’s verdict that Petrak, with malice and without probable cause, was actively instrumental in causing Sentry’s action against Jacques to proceed, and we affirm the judgment of the trial court.

Factual and Procedural Background

Petrak was employed by Sentry to…