Smith v. Allstate Insurance

MEMORANDUM **

Joseph Welle, as personal representative and heir for decedents, Violet Smith and Maxine Welle (together, “Smith”), appeals the district court’s order denying Smith’s motion for a new trial following a jury verdict awarding Smith $20,000 in compensatory damages. Smith brought suit against defendant Allstate Insurance Company (“Allstate”) seeking compensatory and punitive damages of $136,000, stemming from Allstate’s use of fraudulent engineering reports in assessing damage to Smith’s home following the 1994 Northridge earthquake. Smith contends that the district court abused its discretion in excluding documents and witnesses that would have established a “pattern and practice” of bad faith conduct by Allstate. We agree, and reverse and remand for further proceedings.

I. Standing to Appeal

Allstate initially contends that, because the jury awarded Smith $20,000 in compensatory damages, Smith is not an “aggrieved” party and therefore lacks standing to appeal. See Deposit Guar. Nat’l Bank v. Roper, 445 U.S. 326, 333 , 100 S.Ct. 1166 , 63 L.Ed.2d 427 (1980) (“[Ojnly a party aggrieved by a judgment or order of a district court may exercise the statutory right to…