Douglas

In this insurance bad faith case, plaintiffs Betty and Jerry Douglas and defendant Fidelity National Insurance Company (Fidelity) appeal from the judgment after jury trial. Judgment was entered in favor of plaintiffs and against Fidelity in the amount of $807,058.10, plus interest and costs of suit. Plaintiffs appeal the trial court’s decision to strike the jury’s $1.9 million punitive damages award following the granting, in part, of Fidelity’s motion for judgment notwithstanding the verdict (JNOV) (appeal No. A137645). Fidelity appeals from the same order arguing, among other things, that the court committed jury instructional error (appeal No. A137732). Fidelity also filed a notice of appeal from the court’s ruling on the motion to tax costs (appeal No. A137897).

We agree with Fidelity that the trial court prejudicially erred in refusing to give certain jury instructions necessary to the jury’s fair consideration of the case. Accordingly, the judgment is reversed and the matter is remanded for a new trial.

FACTUAL BACKGROUND

In December 2010, plaintiffs went to a business called Cost-U-Less Insurance (Cost-U-Less) where, over the telephone, an InsZone Insurance…