Warren Buffet’s insurance empire has been under attack for Resolute’s failure to pay asbestos litigation claims. Mr. Buffet responded with a seven page outline of its view of the facts, including an admission of other bad faith verdicts against Buffet insurance companies.
More fuel for the fire arrived last week when a presumably conservative Montana federal court jury hit Buffet’s GEICO with $2.5 million in punitive damages for failure to act in good faith. It failed to pay an uninsured motorist claim.
It will be interesting to see if Mr. Buffet responds to this jury verdict. The plaintiff’s press release describes the case as follows: