Opinion ID: 2320868
Heading Depth: 1
Heading Rank: 5

Heading: St Paul's Arguments in Opposition to the Award of Compensatory Damages

Text: St. Paul sets forth four reasons why it is not liable for Birth Center's compensatory damages. First, it asserts that its payment of the excess verdict barred Birth Center's bad faith claim. St. Paul argues that allowing bad faith claims despite an insurer's voluntary excess payment would discourage insurance companies from satisfying future excess verdicts. Second, St. Paul contends that D'Ambrosio v. Pennsylvania National Mut. Ins., 494 Pa. 501, 431 A.2d 966 (1981) bars The Birth Center's claim. Third, St. Paul points to 42 Pa.C.S.A. § 8371, which authorizes the award of punitive damages, attorneys fees and costs when an insurer is found to have acted in bad faith, and asserts that because the statute does not mention compensatory damages, none are available. Fourth, St. Paul argues that the trial court did not charge the jury on The Birth Center's breach of contract claim and that, as a result, The Birth Center may not recover compensatory damages based on that claim. In turn, we address and reject St. Paul's arguments.