WFP's Bad Faith Claim In $4M Insurance Suit Stays Alive

Law360, New York (September 28, 2012, 12:58 PM EDT) -- A California federal judge on Thursday refused to dismiss bad faith allegations against Endurance American Specialty Insurance Co. in a suit over its refusal to defend insured stockbroker WFP Securities Corp. against several investor lawsuits, finding WFP's accusations sufficient.

U.S. District Judge John A. Houston said WFP met the claims standard for breach of the covenant of good faith and fair dealing under California law, making plausible allegations that Endurance unreasonably withheld benefits due under the policy. WFP contends Endurance repeatedly denied its defense obligations without...
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