New Jersey Appellate Division Dismisses Broker’s Attempt to Hold Defense Counsel Jointly Liable for Failure to Report D&O Claim

The Appellate Division recently rejected an attempt by an insurance broker to assert contribution and common law indemnity claims against two law firms that represented a mutual client as part of a professional malpractice case the client filed against the broker. The holding confirms the narrow circumstances in which such claims can be successful under New Jersey law. The case is South Brunswick Furniture, Inc., et al. v. Acrisure LLC d/b/a Beckerman & Co. No.:A-2981-17T1, 2020 WL 1043114 (N.J. App. Div. March 4, 2020).

In …

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Venue Matters: Evaluating the Applicable Standard for Bad Faith Claims in New York

The insurance market has a strong interest in minimizing extra-contractual claims against it. These issues are often decided summarily at the pre-answer motion to dismiss stage or after discovery on summary judgment. Notably, however, since 2018, New York courts have articulated varying standards in evaluating a policyholder’s claim for breach of the implied covenant of good faith seeking consequential damages against its insurer in the context of these motions.

Insurers have traditionally defended themselves against these extra-contractual claims by advancing two main arguments:

  1. They are
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