NO COVERAGE DUE = NO BAD FAITH POSSIBLE (New Jersey Federal)

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After finding no coverage due, New Jersey Federal Judge Martini made quick work of the insured’s bad faith claim: “Finally, Plaintiffs’ claim for bad faith denial of insurance coverage (Count II) similarly fails, as Berkshire was not obligated to provide coverage where the Policy excluded the cause of Plaintiffs’ losses.” Judge Martini relied upon Judge Hillman’s August 9, 2021 decision in Z Bus. Prototypes LLC v. Twin City Fire Ins. Co. to support this conclusion.

Date of Decision: December 14, 2021

THE LEARNING EXPERIENCE CORP. v. BERKSHIRE HATHAWAY SPECIALTY INSURANCE CO., U.S. District Court District of New Jersey No. 2:20-CV-14013 (WJM), 2021 WL 5905713 (D.N.J. Dec. 14, 2021) (Martini, J.)