Nevada Supreme Court Affirms Massive Punitive Damages Award
Sandra Eskew, as administrator of her deceased husband Bill’s estate, sued Sierra Health and Life Insurance Company, LLC (SHL), for insurance bad faith after SHL determined that Bill’s preferred lung cancer treatment-proton beam radiation therapy- was not covered by his health insurance plan. Because SHL refused to cover proton therapy, Bill received an alternative treatment which damaged his esophagus, causing pain and suffering for the remainder of his life. Following trial, the jury awarded the estate $40 million in compensatory damages. After a second phase of trial on punitive damages, the jury awarded $160 million in punitive damages.
In Sierra Health And Life Insurance Company, Inc. v. Sandra Eskew, As Special Administrator Of The Estate Of William George Eskew, No. 85369, Supreme Court of Nevada (August 5, 2024) the Supreme Court resolved the issues raised by the insurer.
THE APPEAL
SHL appealed, arguing that the district court erred by denying its motion for judgment as a matter of law because Sandra failed to prove the elements of an insurance bad faith claim. SHL also asserted that the district court erred by denying its motion for a new trial or remittitur because attorney misconduct and the erroneous admission of prejudicial evidence caused the jury to return a verdict based on passion and prejudice.