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HNRK Coverage Corner

Posts from January 2020.

On December 30, 2019, Judge Briccetti of the SDNY issued a decision in Ruiz v. Liberty Mut. Fire Ins. Co., 19 CV 4399 (VB), denying an insurer’s motion to dismiss an insured’s claim for breach of the covenant of good faith and fair dealing, but ruling (contrary to recent First Department case law) that the insured could not recover attorneys’ fees as consequential damages.

This case involves a claim under a homeowners insurance policy for damages sustained to a residence from burst water pipes.  The complaint contained a single cause of action for “breach of contract and implied ...

On December 17, 2019, the First Department issued a decision in McGraw-Hill Education, Inc. v. Illinois National Insurance Company, 2019 NY Slip Op 08960, ordering an insurer to provide defense coverage in a copyright infringement action, absent a “judicial determination” that the infringements were intentional. This coverage action arose from over two dozen copyright infringement lawsuits filed across the country against textbook publisher McGraw-Hill Education, Inc. by commercial photographers and stock photography agencies, alleging unauthorized publication ...

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