Judge Upholds $21-Million Award Won by Wescal Credit Insurance
An Orange County Superior Court judge refused to reduce a $21.7-million judgment that a Costa Mesa credit insurance company won against an Agoura-based insurer for breaking contractual duties.
Judge Claude M. Owens let stand the July 30 award to Wescal Credit Insurance in a case it filed three years ago against Heritage Life Insurance Co.
Wescal was in the business of selling insurance policies guaranteeing homeowners that their mortgages would be paid off in case they died. The policies were underwritten by Heritage.
Wescal alleged that Heritage violated its agreement and did not pay money owed under the contract. Wescal went out of business in 1990.
G. Emmett Raitt Jr., a Costa Mesa lawyer for Heritage, said he thought the award should have been reduced because “the damages were grossly excessive.” He said Heritage plans to appeal.
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