... in New Jersey Case.
The New Jersey Appellate Court held that this was not Bad Faith on the part of General, the Underinsured Motorist Carrier:
We find, however, no basis to award Kearny counsel fees premised on General's alleged “bad faith.” Once the first Law Division judge granted NJM's summary judgment motion, and we denied leave to appeal, General acted reasonably in settling with Swartz. In that settlement, General reserved its right to seek reimbursement from Kearny in the amount of the Town's self-insurance reserve. General's subsequent application to recover the $100,000 from Kearny was not bad faith, in light of the Law Division's ruling on the UIM coverage issue, which was the law of the case at that time.
New Jersey Manufacturers Insurance Co. v. Town of Kearny, 2011 WL 867269 *6 (N.J. Super. Ct. App. Div. March 15, 2011)(authorized password required to access Westlaw). [Emphasis added.]
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