Defendant's Attorney: Albany, New York insurance defense lawyer represented the Defendant.

Description: Albany, New York insurance law lawyer represented the Plaintiff who sued the defendant on bad faith breach of an insurance contract.

This case was file din the NYS Supreme Court - County of Albany, 900400-23, and was removed to federal court by Travelers Commercial Insurance Company.

In New York, while there isn't a separate tort for bad faith like some other states, there are still ways to pursue claims against insurers for bad faith conduct related to handling insurance contracts. Here's a breakdown:

Key principles:

Breach of implied covenant of good faith and fair dealing: All insurance contracts in New York have an implied covenant of good faith and fair dealing, which requires the insurer to act fairly and in good faith toward the insured. This includes promptly investigating claims, offering reasonable settlements, and adhering to policy terms.
Consequential damages for breach of contract: If the insurer's breach of the implied covenant results in damages beyond the policy benefits (e.g., additional financial losses, emotional distress), you may be able to recover these "consequential damages."
Establishing bad faith: Proving bad faith can be challenging and requires demonstrating the insurer's actions were:
Arbitrary, capricious, or without a reasonable basis: Denying claims without justification, failing to properly investigate, or offering unreasonably low settlements.
Intentional or reckless disregard for the insured's rights: This goes beyond negligence and suggests intentional misconduct causing harm to the insured.

Unique aspects of New York law:

Bi-Economy Market, Inc. v. Harleysville Insurance Co.: This landmark case established the foundation for consequential damage claims arising from an insurer's breach of contract.
No separate tort for bad faith: Unlike some states, New York doesn't recognize a separate tort for bad faith, limiting claims to breach of contract with consequential damages.
Stricter standards for emotional distress: Recovering emotional distress damages in New York can be difficult and requires strict proof of severe emotional harm directly caused by the insurer's actions.

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Outcome: Settled for an undisclosed sum and dismissed with prejudice.

Plaintiff's Experts:

Defendant's Experts:

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