Punish them with punitive damages

To put it in the simplest terms, punitive damages awarded in civil cases are to punish companies for their wrongdoings. Granted, State Farm does not think they did anything wrong by denying homeowners claims after Hurricane Katrina, but let's hope that the 5th Circuit realizes how badly the insurance industry treated the people of Mississippi.

From the Clarion Ledger:

State Farm Fire and Casualty Co. asked a federal appeals court Wednesday to throw out a landmark $1 million punitive damage award to a Mississippi couple who sued the insurer for refusing to cover Hurricane Katrina damage to their home.

A three-judge panel from the 5th U.S. Circuit Court of Appeals heard arguments from lawyers on both sides of the case, which was the first among hundreds of Katrina insurance lawsuits to be tried by a jury in Mississippi. The court didn't immediately rule on State Farm's appeal.