AUGUST 2018 BAD FAITH CASES: COURT DISMISSES FRAUD CLAIM AGAINST INSURED (New Jersey Appellate Division)

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The carrier brought action against its insured alleging violations of the New Jersey Insurance Fraud Prevention Act, breach of contract, breach of good faith and fair dealing, and unjust enrichment. The trial court dismissed the claims and the appellate division affirmed. Both courts found the evidence did not support a fraud claim, and that any such claim was subject to a general release.

Date of Decision: August 16, 2018

Selective Casualty Insurance Co. v. Exclusive Auto Collision Center, Inc., DOCKET NO. A-0568-17T1, 2018 N.J. Super. Unpub. LEXIS 1935, 2018 WL 3892740 (N.J. App. Div. Aug. 16, 2018) (Suter and Whipple, JJ.)