¶7 We hold as follows:
(1) Roehl Transport, an insured with a deductible for its liability coverage, has a cognizable bad faith claim against its insurance company when the company has control over settlement of a third-party claim and engages in bad faith conduct toward the insured, even though the judgment does not exceed the policy limits.
(2) Sufficient credible evidence supports the jury's finding of bad faith and the jury's determination of damages in this case.
(3) Judicial public policy considerations do not preclude Roehl Transport's bad faith claim.
(4) Roehl Transport is entitled to attorney fees as a matter of law upon the jury's finding of bad faith. The amount of attorney fees to be awarded is for the circuit court to determine on remand.
(5) The circuit court did not err in denying Roehl Transport's claim for punitive damages.
Insured recovers bad faith judgment, by David Ziemer
Wisconsin Supreme Court expands reach of insurance doctrine of bad faith, by Joe Forward, State Bar of Wisconsin