Category archive: New York

In New York, Breach of Duty of Implied Covenant of Good Faith and Fair Dealing and Breach of Contract Are Distinct Causes of Action

Summary:  The plaintiff was injured while operating a vehicle insured by GEICO. The plaintiff obtained the policy limits from the tortfeasor’s insurer and then made a claim under the SUM endorsement of the GEICO policy.  GEICO denied the claim, and the plaintiff alleged GEICO unreasonably refused payment. Gutierrez v. Government Empls. Ins. Co. The plaintiff…

No Bad Faith by Settling Unconstitutional Strip Search Cases Requiring the Insured to Fund the Settlement

Summary: The County unconstitutionally strip searched multiple arrestees between 1999 and 2002. Recognizing the defenseless nature of the case, Selective Insurance Company of America (Selective) and retained counsel, settled the case, funded the settlement, and then sued the County to recover the multiple deductibles paid. The courts below determined the County owed a deductible paid…

New York Has No Independent Bad Faith Tort

Summary: Aaron Cohen (Cohen) was injured while working for UPI while operating a mixing machine. Cohen filed suit against UPI, Hastings Development (“Hastings”), and other defendants. Hastings filed a declaratory judgment and bad faith case in federal court after Evanston Insurance Company (“Evanston”) denied coverage under the Employers Liability Exclusion and reserved its rights under…

Bad Faith Claims Are Not Covered by Re-Insurance

United States Fidelity & Guaranty Company (USF&G) sued its re-insurers, including American Re-Insurance Company, seeking to recover “a share of the nearly billion dollars it paid in settling asbestos claims.” An earlier summary judgment motion had been appealed to, ruled upon, and remanded by the highest court in New York after finding a fact issue…

Issues Regarding Good Faith and Reasonableness of Stipulated Judgment Remain

Summary: Lasorte brought suit against Certain Underwriters at Lloyd’s seeking payment on a stipulated judgment agreed to by Lasorte’s employer (the insured) after Lloyd’s refused to defend the employer. After Lloyd’s moved for summary judgment, the United States District Court warned that partial summary judgment in favor of Lasorte was likely regarding Lloyd’s liability, but…

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