Wilbur Blume, Mary Blume, Cross-Appellees v. Ohio Casualty Insurance Company Ohio Casualty Group, Cross-Appellants

985 F.2d 571 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Wilbur BLUME, Mary Blume, Plaintiffs-Appellants, Cross-Appellees, v. OHIO CASUALTY INSURANCE COMPANY; Ohio Casualty Group, Defendants-Appellees, Cross-Appellants. Nos. 91-55706, 91-55920. United States Court of Appeals, Ninth Circuit. Argued and Submitted Jan. 7, 1993. Decided Jan. 28, 1993. 1 Before CANBY and WILLIAM A. NORRIS, Circuit Judges and TANNER, * District Judge. 2 MEMORANDUM ** 3 Mary Blume and her late husband Wilbur brought this action against the Ohio Casualty Insurance Company ("Ohio") for its handling of a claim they filed after a fire severely damaged their home. The jury found that Ohio breached its duty of good faith and fair dealing when it undervalued the loss and forced the Blumes to seek arbitration. The jury awarded the Blumes $63,000 in compensatory damages and $2 million in punitive damages. The district court rejected Ohio's challenge to the compensatory damage award, but granted the…