October 2016 Bad Faith Cases: Bad Faith Claim Survives Where Breach of Contract Claim Survives on Title Insurance Claim (New Jersey Federal)

In this case, the court conducted a painstaking analysis at the motion to dismiss stage, on whether an exception to title insurance applied in connection with a defect in title. The court found that the claim was covered as pleaded, and thus allowed both a breach of contract and bad faith claim to proceed, without a detailed discussion on the bad faith claim.

Date of Decision: August 29, 2016

Plantation Bay, LLC v. Stewart Title Guar. Co., 2016 U.S. Dist. LEXIS 115155 (D.N.J. Aug. 29, 2016) (Simandle, J.)

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