In an unpublished decision under New Jersey law, a Federal Judge was confronted with a Bad Faith Claim against an Insurance Company which had issued a Policy that the Court called "a businessowner's policy". Download Laverde v. Sirius Am. Ins. Co. (D.N.J. Opinion Signed August 26, 2009.Opinion Filed August 28, 2009.Stated NOT FOR PUBLICATION), attached Official Slipsheet Opinion at 1. The Policyholder presented a Claim for Coverage of lost "business personal property," and failed in establishing Coverage for the Claim. Download Laverde v. Sirius Am. Ins. Co. (D.N.J. Opinion Signed August 26, 2009.Opinion Filed August 28, 2009.Stated NOT FOR PUBLICATION), at 2, 5. This result was held "fatal to [the Policyholder's] bad-faith claim for damages." Download Laverde v. Sirius Am. Ins. Co. (D.N.J. Opinion Signed August 26, 2009.Opinion Filed August 28, 2009.Stated NOT FOR PUBLICATION), at 6.
The Federal Judge held in that case that for either one of two alternative reasons, there was no valid Bad Faith Claim in that case: Not only did the Plaintiff Policyholder fail in establishing Coverage which under New Jersey law prevents any Bad Faith Claim for accruing, but the Federal Judge also held that the Insurance Company Defendant in that case had an "arguable reason" for Denying all Coverage which itself is a good defense to a Bad Faith Claim under New Jersey law. Download Laverde v. Sirius Am. Ins. Co. (D.N.J. Opinion Signed August 26, 2009.Opinion Filed August 28, 2009.Stated NOT FOR PUBLICATION), at 6.
There is also a post concerning the decision in the LaVerde case on Insurance Bad Faith Law Blog.
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