Julie Holmgren v. State Farm Mutual Automobile Insurance Company, Julie Holmgren v. State Farm Mutual Automobile Insurance Company

In these consolidated appeals, State Farm Mutual Automobile Insurance Company appeals the district court’s judgment entered on a jury verdict for Julie Holm-gren in her action for unfair claim settlement practices under Mont.Code Ann. § 33-18-201. State Farm also appeals the district court’s award of attorney expenses under Fed.R.Civ.P. 37(c). We affirm in all respects except the size of the Rule 37(c) award.

I

Julie Holmgren was injured on July 16, 1986, in Helena, Montana, when State Farm’s insured, Sharon Cannon, ran a stop sign and collided with the car in which Holmgren was riding. Cannon was intoxicated at the time. She left the scene of the Holmgren accident and collided with three other cars in the vicinity. Cannon pled guilty to several charges, including driving while under the influence of alcohol.

Immediately after the accident, Holm-gren was treated at a local emergency room for headache and neck and back pain. She thereafter saw Dr. Bishop, who prescribed physical therapy and recommended that she cease working until January 1987. Holmgren followed his recommendation. Her employer discharged her from her part-time job some time before October 22, 1986. Holmgren…