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Insurance – reformation — breach of contract — bad faith — damages

By: WISCONSIN LAW JOURNAL STAFF//December 1, 2011//

Insurance – reformation — breach of contract — bad faith — damages

By: WISCONSIN LAW JOURNAL STAFF//December 1, 2011//

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Wisconsin Court of Appeals

Civil

Insurance – reformation — breach of contract — bad faith — damages

This appeal involves a builder’s risk insurance policy issued by Transportation Insurance Company. The policy covered risks associated with a condominium project that Park Terrace, LLC, was constructing. A fire occurred during construction, and Park Terrace sought to recover under the policy. Transportation paid on Park Terrace’s claim for reconstruction costs, but denied Park Terrace’s separate claim for loss of income. Park Terrace then brought suit for reformation of the insurance policy, breach of contract, and bad faith. The circuit court ordered reformation and, after a trial, the jury found in favor of Park Terrace and awarded contract, bad faith, and punitive damages. Transportation appeals, complaining that, among other things, the evidence does not support the damages.

We affirm with regard to the reformation and breach of contract claims. We reverse the bad faith and punitive damages awards and the award of attorneys’ fees. We affirm the dismissal of Transportation’s cross-claim against defendant-respondent Johnson Insurance Services. We deny Park Terrace’s motion requesting remand for an award of additional attorneys’ fees and costs associated with this appeal. Accordingly, we affirm in part, reverse in part, and remand for entry of judgment consistent with this opinion. Not recommended for publication in the official reports.

2010AP2432 Park Terrace LLC v. Transportation Insurance Company, et al.

Dist I, Milwaukee County, Pocan, J., Lundsten, P.J.

Attorneys: For Appellant: Leitner, Mark M., Milwaukee; Sullivan, Kathleen M., New York, NY; Byrne, Jane M., New York, NY; Adams, William B., New York, NY; Rosen, Brad E., New York, NY; For Respondent: Plantinga, Victor, Milwaukee; Rose, Douglas W., Milwaukee

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