SGL Successful in Striking Bad Faith and CUTPA/CUIPA Claims
GL is successful in striking bad faith and CUTPA/CUIPA claims (along with corresponding prayers for relief seeking attorney’s fees and punitive damages) brought against an insurance company that declined to extend coverage to uninsured portions of a motel owner’s property.
Following a fire loss, the plaintiff sought coverage for a building not included in its property insurance policy. The motel owner sued its insurer for breach of contract, bad faith, and violations of Connecticut’s Unfair Insurance Practices Act. GL was successful in convincing the court to strike the extra-contractual claims because (1) the plaintiff failed to substantiate those claims with facts rising to the level of bad faith; and (2) the plaintiff was unable to properly allege that the insurer’s coverage decision was part of a broader general business practice intended to harm insureds.