Filing Of Coverage Suit Does Not Amount To Bad Faith, N.J. Federal Judge Says

NEWARK, N.J. - An insured cannot assert a bad faith counterclaim against its insurer for filing a suit to rescind insurance policies because allowing the bad faith counterclaim in response to the insurer's lawsuit would deny the insurer of its due process rights, a New Jersey federal judge said Jan. 9 (Nova Casualty Co. v. Col-Mar Apartments Inc., No. 13-04496, D. N.J.; 2014 U.S. Dist. LEXIS 2522).

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