... Policyholder-Plaintiff fails to prove lack of a reasonable basis to deny Coverage, Federal Court holds.
Title Insurance Coverage and Good Faith are recurring issues in Courts throughout the nation. In a recent decision under New Jersey Bad Faith Law, a Federal Judge granted Summary Judgment to a Title Insurance Company on the ground that the Plaintiff-Policyholder failed to prove that the Title Insurance Company lacked a reasonable basis for denying Coverage. Dare Investments, LLC v. Chicago Title Ins. Co., Download Dare Investments, LLC v. Chicago Title Insurance Co. (D.N.J. Case No. 10-6088, Order Filed June 29, 2011) PUBLIC ACCESS, STATED NOT FOR PUBLICATION, also published as 2011 WL 2600594 *1, *12 (D.N.J. June 29, 2011)(authorized Westlaw password required to access Westlaw).
In this decision, the Federal Judge in New Jersey followed a vast majority trend toward requiring Policyholders-Plaintiffs to prove the lack of a reasonable basis for an Insurance Company to deny Coverage as a part of their case.
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