NY Courts Vary In Allowing Bad Faith Claims Against Insurers

By Ashlyn Capote and Jason Rusche (October 18, 2019, 4:59 PM EDT) -- When insurance carriers are sued in declaratory judgment actions, they have a paramount interest in having extracontractual claims dismissed because these types of claims tend to increase the value of the case and the scope of the documents a policyholder may be entitled to during discovery.

When attorneys advise insurance carrier clients regarding the likelihood of success when it comes to obtaining an early dismissal of these types of claims, it is vital to understand the potential risks. However, the manner in which New York courts decide these types of cases is, at times, inconsistent.

Therefore, the purpose of this article...

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