Pacific Mutual Life Insurance Co. v. Haslip

499 U.S. 1 (1991).

Facts

Haslip (P) incurred costs of $4,000 for surgery and made a claim against her medical insurance company, Pacific Mutual Life (D). D's claim was denied for nonpayment of premium. D's agent had been stealing her premiums and that of many of P's co-workers. P could not pay her doctor, and he got a judgment against P for the $4,000. P sued D. P was given a verdict for $200,000 compensatory damages and $840,000 punitive damages. The Alabama Supreme Court affirmed. D appealed claiming that the award violated due process.