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GODDARD v. FARMERS INS. CO.

(CC 9005-03204; CA A118750; SC S053405).

179 P.3d 645 (2008)

344 Or. 232

Margie A. GODDARD, as Personal Representative for the Estate of Marc E. Goddard, Deceased, Petitioner on Review, v. FARMERS INSURANCE COMPANY OF OREGON, an Oregon corporation, Respondent on Review.

Supreme Court of Oregon, En Banc.

Decided March 6, 2008.

Attorney(s) appearing for the Case

Jeffrey M. Batchelor, Markowitz, Herbold, Glade & Mehlhaf PC, Portland, argued the cause and filed the briefs for petitioner on review. With him on the briefs were William A. Barton and Kevin K. Strever, of Barton & Strever, PC, Newport, and David W. Melville, Portland.

James N. Westwood, Stoel Rives LLP, Portland, argued the cause and filed the brief for respondent on review. With him on the brief was Thomas H. Tongue, Dunn Carney Higgins Allen & Tongue LLP, Portland.

William F. Gary and Sharon A. Rudnick, Harrang Long Gary Rudnick PC, Eugene, filed a brief on behalf of amicus curiae Associated Oregon Industries.

GILLETTE, J.

This case involves a constitutional challenge to a punitive damages award that a jury imposed on a liability insurance company, based on the company's bad faith failure to settle a third-party's claim against one of its insureds within policy limits.

The underlying case is a wrongful death proceeding. The insured, John Munson, caused an automobile accident in 1987 while driving under the influence of alcohol. The accident killed Marc Goddard....

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