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PALMER BY DIACON v. FARMERS INS.

No. 91-523.

861 P.2d 895 (1993)

David Alaric PALMER, a Protected Person, by Martha Rose DIACON, his Conservator, Plaintiff and Respondent, v. FARMERS INSURANCE EXCHANGE, Defendant and Appellant.

Supreme Court of Montana.

Decided October 18, 1993.

Rehearing Denied November 18, 1993.

Attorney(s) appearing for the Case

William Conklin & L.D. Nybo (argued), Conklin, Nybo & Leveque, Great Falls, for defendant and appellant.

Dennis Patrick Conner (argued), Great Falls, and John C. Risjord (argued), Risjord & James, Overland Park, KS, for plaintiff and respondent.

Randy J, Cox, Boone, Karlberg & Haddon, Missoula, Dana L. Christensen, Murphy, Robinson, Heckathorn & Phillips, Kalispell, and Robert F. James (argued), James, Gray & McCafferty, Great Falls, for amicus curiae.

McDONOUGH, Justice.

This is an appeal from an order based on a jury verdict and a judgment of $750,000 in compensatory damages and $750,000 in punitive damages against Farmers Insurance Exchange (Farmers) for breach of the covenant of good faith and fair dealing (bad faith). We reverse and remand for a new trial.

This action arose in conjunction with a claim by Palmer, the insured, against Farmers, the insurer, for uninsured motorist benefits. Palmer's claim...

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