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The New Mexico Court of Appeals had concluded that there was a "real distinction" between the "bad faith" sufficient to prove a simple breach of the implied covenant of good faith and fair dealing for an award of compensatory damages and the "bad faith" sufficient to sustain an award of punitive damages.

Recently the New Mexico Supreme Court clarified when an instruction on punitive damages must be given in an insurance bad faith case. The court's analysis is noteworthy for the effort to clarify the standards for both first and third patty bad faith. Finally, the court rewrote UJI Civil 13-1718 to comport with its decision.

Publication Title

The New Mexico Trial Lawyer: The Journal of the New Mexico Trial Lawyers' Foundation





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6 pages

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Law Commons


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