Judge Douglas W. Stern, Case Number: 22STCV10586, Date: 2023-12-20 Tentative Ruling

Henghame Abaghi vs. State Farm General Insurance Company; 22STCV10586

Moving Party: Defendant State Farm General Insurance Company

Opposing Party: Plaintiff Henghame Abaghi

Plaintiff Henghame Abaghi (Plaintiff) filed her complaint on March 28, 2022. This action arises out of Defendant State Farm’s (Defendant) denial of Plaintiff’s claim for a water loss. Plaintiff is alleging causes of action for breach of duty of good faith and fair dealing and breach of contractual duty to pay a covered claim against Defendant. As part of her claim for relief, Plaintiff is requesting punitive damages against State Farm. Defendant is requesting that the Court bifurcate the liability phase of the trial from the punitive damages part of the trial so that Defendant must first be found to have acted with malice, fraud, or oppression before Defendant must disclose its financial condition.

Defendants request bifurcation of the liability phase of the trial from the punitive damages phase of the trial under Civil Code § 3295.

“(d) The court shall, on application of any defendant, preclude the admission of evidence of that defendant’s profits or financial condition until after the trier of fact returns a verdict for plaintiff awarding actual damages and finds that a defendant is guilty of malice, oppression, or fraud in accordance with Section 3294.”

In this case, bifurcating the liability phase of the trial (including a determination of liability for punitive damages) from the punitive damages financial evidence phase of the trial is mandated. The Court agrees that the liability phase should be bifurcated from the punitive damages evidence phase. If the trier of fact finds that Defendant is not liable or is liable but did not act with malice, oppression, or fraud, then it would not be necessary for the trier of fact to hear financial evidence for purposes of Plaintiff’s punitive damages claim.

Defendant’s motion to bifurcate the liability claims from the punitive damages claim is granted.

1. Defendant’s Motion to Bifurcate is GRANTED. The liability claims will be the first phase, and punitive damages financial phase will be the second phase.