Clayton

I. Introduction

This appeal arises out of a “bad faith” action brought by David Clayton (Clayton) against his long-term insurance company United Services Automobile Association (USAA) based upon USAA’s conduct in attempting to settle for a fraction of the policy limits Clayton’s underinsured motorist claim for the death of his 15-year-old only child in an automobile accident. The jury awarded Clayton $429,310 in compensatory damages (of which $400,000 was allotted as compensation for emotional distress) and $3.9 million in punitive damages. USAA appeals urging numerous grounds for reversal of the judgment or reduction of the damages. In the published portion of the opinion, we reject USAA’s contention that the trial court erred in failing to instruct the jury that it was permitted to award emotional distress damages only if Clayton’s distress flowed from a substantial economic loss caused by USAA’s conduct. In the unpublished portions of the opinion, we reject USAA’s remaining claims and affirm the judgment.

II. Factual and Procedural Background

III. Discussion

A.-H.*

I. The Law Does Not Require Emotional Distress to Flow From Economic Loss or to Be Severe.

USAA…