Breaking Barriers to Justice
the strategic importance of financial evidence. All barriers.
discovery of other Colonial claimants’ names, addresses, and files, to investigate whether the conduct at issue formed part of a broader pattern. Colonial resisted, arguing the information lacked relevance and implicated privacy concerns. The Supreme Court disagreed. The court held that a plaintiff may establish a basis for punitive damages by showing either that the defendant knowingly committed the harmful acts or engaged in them “with such frequency as to indicate a general business practice.” Where direct proof of knowing wrongdoing proves elusive, pattern evidence provides an alternative path, and discovery aimed at establishing the frequency of alleged unfair practices therefore directly advances relevance. The Colonial Life framework extends well beyond insurance disputes. Courts recognize that discovery into other instances of alleged misconduct properly serve to: (1) show bad faith or ratification of misconduct by a corporation; (2) clarify ambiguities in contracts or policies by examining how the defendant interprets similar provisions in other cases; (3) demonstrate the defendant’s knowledge of relevant facts or legal standards; and (4) establish a basis for punitive damages through evidence of a “conscious course of conduct, firmly grounded in established company policy.” Colonial Life discovery serves multiple functions. Pattern evidence strengthens the substantive case for punitive liability by transforming an isolated incident into systemic misconduct. It provides leverage in settlement negotiations by exposing the defendant’s broader exposure. And it generates documents that may themselves contain financial information, reserve
This article discusses underutilized tools for obtaining financial evidence and offers advice on how to overcome a widely-cited but analytically flawed appellate decision that chills cross-border document production. It also proposes creative strategies and strategic timelines for assuring that you are not caught with the empty brief case. It will then provide timelines to assure you have the financial materials you need at the time of trial, and finally, and ends with a catalogue of statutes and strategies.
Phase 1: Beyond Net Worth: Colonial Life and Pattern-of-Conduct Evidence
A complaint containing a request for punitive damages is a magnet for a series of demurrers and motions to strike. I suggest going on the offence before the defense is retained. You can do so by including in your complaint, allegations that Defendant’s pattern and practice of business caused plaintiff’s injuries. In Colonial Life & Accident Insurance Co. v. Superior Court (1982) 31 Cal.3d 785, the California Supreme Court established that discovery of a defendant’s pattern of similar conduct, even conduct involving other victims, qualifies as not only permissible but “highly relevant” to punitive damages claims. Colonial Life arose from an insurance bad faith case. The plaintiff, the administratrix of an estate, alleged that Colonial and its claims adjusters made grossly inadequate offers to settle on a policy claim, attempting to strong-arm its insured into surrendering her policy for a fraction of its value. The insured died without receiving any benefits. The plaintiff sought
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Consumer Attorneys of California
FORUM July/August 2026
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