Farmers Insurance Exchange v. Henderson
Arizona Supreme Court
313 P.2d 404 (1957)

- Written by Sean Carroll, JD
Facts
George Henderson (plaintiff) bought an insurance policy from Farmers Insurance Exchange (Farmers) (defendant). Farmers did not settle a claim against Henderson when it could have. The failure to settle resulted in Henderson having to pay more than his liability limits, which in turn resulted in him losing his family business. Henderson sued Farmers for breach of its insurance contract. The trial court instructed the jury that if it found Farmers liable, it could award Henderson emotional damages for his humiliation, pain, and suffering that resulted from the loss of his business. The jury ruled in Henderson’s favor and awarded $45,000 in damages. Farmers appealed.
Rule of Law
Issue
Holding and Reasoning (Windes, J.)
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