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August 22, 2019

Findings of Fraud, Oppression and Malice Renders Awards

In Cohen v. Berkley National Ins. Co., __ Fed.Appx.3d __ (2019), 2019 WL 3235076 (9th Cir. July 18, 2019) (unpublished), the Ninth Circuit Court of Appeals held that findings of fraud, oppression and malice by a jury rendered both the compensatory and punitive damages components of the Judgment excluded from coverage. The Ninth Circuit concluded that there was no coverage for the compensatory damages portion of the Judgment because, “the jury and district court did not distinguish between compensatory and punitive damages in finding that [insureds’] conduct amounted to fraud, oppression, and malice.” The Ninth Circuit thus upheld the district’s court’s dismissal of the action against the insurer pursuant to Fed. R. Civ. Proc. Rule 12(b)(6).

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