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Teague-Strebeck Motors Inc. v. Chrysler Insurance Co.3/8/1999
im that [Chrysler] acted with an evil nature or other culpable mental state; punitive damages are therefore not appropriate." Plaintiffs argue that this Conclusion of law incorrectly applied a heightened standard for punitive damages, and that punitive damages should have been considered solely on the basis of the district court's discrete bad-faith determinations. As we have already demonstrated, New Mexico now requires a showing of a culpable mental element to allow imposition of punitive damages. The district court was correct in measuring Chrysler's conduct against the standard of evil motive or culpable mental state despite the statement in Jessen, 108 N.M. at 627, 776 P.2d at 1246, that " ad faith supports punitive damages upon a finding of entitlement to compensatory damages." That formulation must be viewed as having been superseded by Paiz and Allsup's.
{91} We deny the remaining points in Plaintiffs' Motion for Rehearing, except to acknowledge that our use of the figure "$300,000" for the damages figure was only illustrative and used for drafting convenience. The precise damage figure is, of course, subject to calculation on remand.
{92} With respect to Chrysler's motion for rehearing, the district court may adjust the award of attorney fees and costs if the court determines that Plaintiffs did not have an insurable interest.
{93} Because of the tragic death of former Chief Justice Frost, further evidentiary proceedings may be necessary on remand.
{94} IT IS SO ORDERED.
MICHAEL D. BUSTAMANTE, Judge
WE CONCUR:
HARRIS L HARTZ, Judge
M. CHRISTINA ARMIJO, Judge
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