Glendale & 27th Investments, LLC v. Delos Insurance

MEMORANDUM

In August 2008, a storm hit Phoenix and damaged a number of properties, including the Sterling International Hotel (the Property). Glendale & 27th Investments, LLC (Glendale), the owner of the Property, immediately filed a claim with its property insurance carrier, Delos Insurance Co. (Delos). Delos sent out several adjusters to inspect the damage over the next few weeks.

The parties’ relationship rapidly deteriorated. Both sides retained counsel, and serious disagreements arose regarding which structures on the Property were covered by the insurance policy and how much of the damage was caused by the storm. Delos’s final offer to settle the claim was $50,000, which Glendale rejected.

Almost a year and a half after the storm, Glendale sued Delos and several other defendants. The matter went to trial in January 2013. All defendants other than Delos settled with Glendale after the close of the evidence. Delos moved for judgment as a matter of law, which the district court denied.

The jury returned a verdict against De-los for $144,383 in compensatory damages and $500,000 in punitive damages. In this timely appeal, Delos limits its arguments to the issue of punitive…