Ashlyn M. Capote and Jason E. Rusche, members of the Global Insurance Services group, wrote an article for Law360 providing guidance on New York opinions that examine consequential damages and bad faith claims for insurance carriers and attorneys.
In “NY Courts Vary In Allowing Bad Faith Claims Against Insurers,” Ashlyn and Jason discuss basic legal concepts that serve as the foundation for the courts’ analyses, how courts have varying standards in evaluating a policyholder’s claims, and how the language within policies can limit the insurance carrier’s liability.
“The court explained that the claim for consequential damages was not duplicative of the breach of contract claim because the insured had alleged that it did not have the financial resources to repair its building and that the carrier’s delay in paying the claim caused the building to suffer additional damages. The court concluded that the insured could sufficiently plead a cause of action by merely identifying its alleged consequential damages and claiming the insurer’s refusal to pay its claim caused said damages.”
Read the full article here:
“NY Courts Vary In Allowing Bad Faith Claims Against Insurers,” Law360, October 18, 2019
Ashlyn advises insurers on complex coverage matters and handles insurance coverage litigation throughout New York State. She regularly counsels clients on their obligations to provide coverage to insureds under their policies and their ability to seek additional coverages on behalf of their insureds, and she assists with all aspects of coverage litigation, from pleadings and discovery to mediation and settlement negotiation.
Jason has extensive experience handling complex coverage disputes for insurers under a wide range of insurance policies. He also frequently defends insured clients in underlying litigation, with particular experience in environmental, toxic tort, premises liability, and construction matters. He often works closely with technical experts to evaluate the veracity of third-party claims and to develop effective defense strategies. Jason also draws on previous experience working in-house at two Fortune 200 international insurers as a senior claims specialist handling high-severity legacy liability claims and first- and third-party pollution and professional liability claims.