Case: Goodson v. American Standard Insurance Co. of Wisconsin 89 P.3d 409; 2004 Colo. LEXIS 388 Supreme Court of Colorado, 2004

Facts: Dawn Goodson and her two children were in an automobile accident while driving a car owned by Chet Weber. He was insured by American Standard Insurance Company of Wisconsin.

To treat injuries that she and her children suffered in the accident, Goodson sought care from a chiropractor. She submitted these bills, totaling about $8,000, to American Standard. The insurance company offered a number of erroneous reasons why it should not pay the claims: that the chiropractor was not a member of American Standards preferred provider organization; that Webers policy was not in effect at the time of the accident; and that Goodson and her children needed to undergo an independent medical evaluation to determine whether their injuries were related to the accident and whether their medical treatment was reasonable and necessary. In the end, American Standard did pay Goodsons bills, but it took 18 months to do so.

Goodson filed suit against American Standard, alleging that it had engaged in a bad faith breach of the insurance contract. Although the companys delay in payment had not caused Goodson any economic damage, it had caused her substantial emotional distress. The jury awarded Goodson and her children $75,000 in actual damages and an additional $75,000 in punitive damages. The appeals court overturned the verdict. Goodson appealed to the state Supreme Court.

Issue: Can Goodson recover damages for emotional distress without showing any economic loss caused by American Standards delay in paying her claim?

Question: Would a reasonable insurer have behaved as American Standard did?

Question: But American Standard did in the end pay all the bills in full. What is Goodsons claim against the company?