On Oct. 26, 2010, plaintiff Panorea White learned that her motor vehicle property damage claim was denied. White was previously involved in an accident on July 28, 2010. The repair costs for the vehicle she owned with plaintiff Isagani Salandanan were estimated to be $3,500. However, on Oct. 26, 2010, GEICO Indemnity Co., which insured the vehicle, denied the first party property claim, asserting that White made a “material misrepresentation” in reporting the accident. Specifically, it concluded that the damages to the vehicles allegedly involved in the incident, including White’s vehicle, were inconsistent with the accident as reported by White. White and Salandanan sued GEICO Indemnity Co., GEICO Casualty Co. and the claims adjuster, Michelle Kurak. White and Salandanan alleged that the defendants’ actions constituted bad faith. Kurak and GEICO Casualty were ultimately let out of the case, and the matter proceeded to trial against GEICO Indemnity only. GEICO Indemnity admitted there was no fraud by White, but contended it had not “unreasonably” denied the claim. It also contended that it made an “honest mistake” by reasonably relying on an independent forensic engineer who found there was no collision between the two vehicles., White and Salandanan sought recovery of $3,000 in repair costs. They also sought recovery of $500,000 in damages, each, for their emotional distress. In addition, they sought recovery of punitive damages.