Section 11 Effect of Adverse Verdict Against Insurer

• Library: Damages 2012

A verdict or judgment against an insurer on a claim under the policy does not determine the propriety of imposing vexatious penalties per se. The general rule was stated by the Supreme Court of Missouri in Groves v. State Farm Mutual Automobile Insurance Co., 540 S.W.2d 39, 42 (Mo. banc 1976): “The mere fact that the trial judgment is adverse to a defendant’s contention is not sufficient reason for imposing the penalty.” See also:

Hammontree v. Cent. Mut. Ins. Co., 385 S.W.2d 661, 668 (Mo. App. S.D. 1965) (“merely...