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Home News & Case Notes Third Circuit upholds punitive award in bad faith case (2/15/2005) - The 3d U.S. Circuit Court of Appeals yesterday upheld a punitive damage award of $150,000 in a bad faith case against an insurance company. In Willow Inn Inc. v. Public Service Mutual Insurance Co., a unanimous three- judge panel on Feb. 14 upheld a U.S. District Court judge’s decision that the award was in accordance with the Supreme Court’s dictates on punitive awards in BMW of North America, Inc. v. Gore and reinforced in State Farm Mutual Automobile Insurance Company v. Campbell. The claim involved alleged breech of an insurance contract and bad faith by the insurance company following damage to a business by a tornado.