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HAYES BROS., INC. v. ECONOMY FIRE & CAS. CO.

No. 80-1022.

634 F.2d 1119 (1980)

HAYES BROTHERS, INC., Plaintiff-Appellee, v. ECONOMY FIRE & CASUALTY COMPANY, Defendant-Appellant.

United States Court of Appeals, Eighth Circuit.

Decided November 25, 1980.

Attorney(s) appearing for the Case

Stuart R. Lefstein, Rock Island, Ill., for defendant-appellant Economy Fire & Cas. Co.

William C. Fuerste, Stephen J. Juergens, Dubuque, Iowa, for plaintiff-appellee, Hayes Bros., Inc.

Before HEANEY and BRIGHT, Circuit Judges, and HUNGATE, District Judge.

HUNGATE, District Judge.

Appellant, Economy Fire & Casualty Company [Economy], appeals an award of compensatory and punitive damages in an "excess judgment" action brought by appellee, Hayes Brothers, Inc. [Hayes]. We affirm as to the award of compensatory damages, and reverse as to punitive damages.

Hayes filed this "excess judgment" action against its insurer, Economy, based on Economy's failure to accept a policy limit demand to settle a tort action...

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