In an unpublished decision under New Jersey law, a Federal Judge was confronted with a Bad Faith Claim against an Insurance Company which had issued a Policy that the Court called "a businessowner's policy". Download Laverde v. Sirius Am. Ins. Co. (D.N.J. Opinion Signed August 26, 2009.Opinion Filed August 28, 2009.Stated NOT FOR PUBLICATION), attached Official Slipsheet Opinion at 1. The Policyholder presented a Claim for Coverage of lost "business personal property," and failed in establishing Coverage for the Claim. Download Laverde v. Sirius Am. Ins. Co. (D.N.J. Opinion Signed August 26, 2009.Opinion Filed August 28, 2009.Stated NOT FOR PUBLICATION), at 2, 5.
The Federal Judge held in that case that for either one of two alternative reasons, there was no valid Bad Faith Claim in that case:
Plaintiff has not prevailed on his substantive claim, and even if he eventually does prevail, the Court finds that Sirius [the Insurance Company Defendant] has clearly established at least a reasonable basis for denying the claim. LaVerde's [Plaintiff's-Policyholder's] failure to prevail on his own substantive summary judgment motion is fatal to his bad-faith claim for damages.
There is also a post on Insurance Claims and Issues Web Log concerning the LaVerde case.
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