What You Can Recover in a New Mexico Bad Faith Case
New Mexico's remedies follow from having two routes. The statutory claim carries its own fee and cost provisions, the consumer statute adds another possibility, and punitive damages sit behind both.
Actual damages under the statute
The statute allows a person damaged by a violation to recover actual damages in district court, and awards costs to the prevailing party — a meaningful provision on its own.
Attorney fees for a willful violation
Where the insurer's violation was willful, the statute provides for attorney fees. That is a fee-shifting statute rather than a damages rule, which distinguishes it from California's approach.
Treble damages under the consumer statute
The Unfair Practices Act offers a further route with the possibility of treble damages, subject to a court's discretion about whether to allow both treble and punitive damages for the same conduct.
Punitive damages, and how routinely they arise
Punitive damages are available for reckless disregard, oppression, or malice — and in New Mexico the jury is instructed on punitive damages in bad-faith cases as a matter of course. There is no statutory cap in a private bad-faith action.
Common questions
Can I recover attorney fees in New Mexico?
The statute provides for fees where the insurer's violation was willful, and costs go to the prevailing party regardless.
Can I get treble damages and punitive damages?
Possibly one or the other. The Unfair Practices Act allows treble damages, but a court may not permit both treble and punitive recovery for the same conduct.
Is your insurer treating you unfairly?
A free, confidential review can tell you whether what happened crosses the line — no cost, no obligation.
Related New Mexico law
General information about New Mexico law, not legal advice. Every policy and every claim is different.