Nothing to Lose: An Insurance Company's Duty of Good Faith and Fair Dealing,Punitive Damages,and The Legacies of Campbell

This article explores the potential evisceration of the deterrence function of punitive damages, one of the only economic incentives that deters insurance companies from opportunistically breaching their insurance policies. Readers will gain an understanding of why large punitive damages awards are essential in the insurance coverage field and how such awards may implicate due process standards. The article explains the constitutional limitations set forth by the U.S. Supreme Court in imposing punitive damages, and provides a roadmap of how lower courts and practitioners are presently applying these rules.