MARCH 2014 BAD FAITH CASES: COURT DISMISSES BAD FAITH COUNTERCLAIM TO INSURER’S INJUNCTIVE ACTION FOR RESCISSION, WHICH WAS DEFENDING INSURED UNDER A RESERVATION OF RIGHTS, AS LOSS OF A DEFENSE AS A RESULT OF THE RESCISSION ACTION IS NOT BAD FAITH (New Jersey Federal)

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In Nova Casualty Co. v. Col-Mor Apartments, Inc., the insured was sued on the basis that it was providing drinking water contaminated with radioactive materials. …