Insurance Ruling Extends NY Bad Faith to 3rd-Party Coverage
Partner Jeremy King, senior associate Alexander Corson and associate Michael Kleinman’s article in Law360, “Insurance Ruling Extends NY Bad Faith to 3rd-Party Coverage,” examines a recent Southern District of New York decision strengthening insurer bad faith claims under New York law.
They analyze Renergy Inc. v. Mt. Hawley Insurance Co., in which the court rejected arguments that bad faith remedies are limited to first-party policies and reaffirmed that insurers may face liability for claims handling misconduct in both first- and third-party contexts.
“The critical message from Renergy is that bad faith claims handling is a viable stand-alone cause of action under New York law, available in both first-party and third-party insurance claims,” they write.
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