Opinion ID: 1443756
Heading Depth: 1
Heading Rank: 2

Heading: the testimony of james wadhams was properly allowed.

Text: James Wadhams, the former Nevada insurance official, was permitted to testify that the mailing Monumental sent to Walston violated Idaho insurance department advertising regulations. Monumental argues that the testimony was inadmissible because there is no private cause of action under the Unfair Claims Settlement Practices Act. I.C. §§ 41-1301 to -1333 (1991 & Supp.1996). It is well-established and undisputed that Idaho's Unfair Claim Settlement Practices Act does not allow for a private cause of action for a violation of the Act. See White v. Unigard Mut. Ins. Co., 112 Idaho 94, 101, 730 P.2d 1014, 1021 (1986). However, the testimony of Wadhams did not relate to Walston bringing a claim under the Act. The testimony was presented to show insurance industry standards and was properly admitted for that purpose. Monumental also asserts that Wadhams' testimony was irrelevant to this case and, therefore, should have been excluded. In Sliman v. Aluminum Co. of Am., 112 Idaho 277, 731 P.2d 1267 (1986), cert. denied, 486 U.S. 1031, 108 S.Ct. 2013, 100 L.Ed.2d 601 (1988), this Court upheld the admission of testimony from an expert witness in a products liability action. The expert opined that, the failure to correct this problem, or to warn ... the public about it, is an extreme deviation from the customary practice in the industry. Id. at 285, 731 P.2d at 1275. The Court stated, In Idaho, experts may testify on the ultimate issues or facts so long as their testimony assists the trier of fact. The determination of what will be of assistance to the trier of fact lies within the broad discretion of the trial court. Id. (citations omitted). The Court concluded that since the witness was familiar with customary practices in the industry, his testimony as to the defendant's extreme deviation from customary practices was relevant to the issue of punitive damages. Id. For the same reasons that were set forth in Sliman, 112 Idaho 277, 731 P.2d 1267, Wadhams' testimony was relevant to this case. A violation of the Unfair Claims Settlement Practices Act does not as a matter of law constitute fraud, but evidence of an extreme deviation from customary practices is relevant to the state of mind that is necessary to establish fraud. The district court could properly determine that the probative value of the testimony outweighed any unfair prejudicial effect. I.R.E. 403.