Ehrlich Law Firm wins affirmance of punitive-damages award against Mercury Insurance Co. in bad-faith case

Los Angeles Certified Appellate Specialist

Ehrlich Law Firm wins affirmance of punitive-damages award against Mercury Insurance Co. in bad-faith case

California Courts of Appeal SealMercury Insurance Co. took over two years to process and pay the straightforward business-loss case of Amerigraphics Company, a commercial printer in the San Fernando Valley, whose premises were flooded when a pipe broke in the building they leased.

A jury found that Mercury acted in bad faith and awarded punitive damages. The Court of Appeal affirmed, holding that the company’s business-interruption coverage applied to the business’s fixed costs, even if the business was not making a profit, and finding that Mercury’s conduct was tortious and warranted an award of punitive damages. (Amerigraphics v. Mercury Ins. Co. (2010) 182 Cal.App.4th 1538.)


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Southern California appeals attorney, Jeffrey I. Ehrlich, is an appellate specialist certified by the State Bar of California’s Committee on Legal Specialization. He is the principal of the Ehrlich Law Firm, in Los Angeles County, Encino, California.