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Punitive Damages: Punishment Of An Insured Defendant?, Carroway V. Johnson, Kenneth Lasson

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The plaintiff sued the defendant for injuries sustained in an automobile collision and was awarded a judgment in the amount of $5,000 actual damages and $1,500 punitive damages. The defendant's insurance company had refused to defend her in that action or to pay the judgment obtained, relying upon an employee exclusion clause in the policy. The plaintiff thereupon sued the defendant on the judgment, this time joining the insurer as a co-defendant, and won a verdict to recover against the insurer the aforesaid amount. The insurance company appealed, questioning its liability for punitive damages.