Property & Casualty Insurance: Third Party Bad Faith


Our firm obtained $2 million from an insurance company for its bad faith refusal to settle a personal injury case against our client, the owner of a large apartment complex in New York City.

When a business or individual gets sued but they carry liability insurance, it is expected that the liability insurance company will provide a defense and pay any appropriate settlement. If the insurance company leaves its customer “hanging out to dry”, there can be a “bad faith” problem. That’s where we step in.

If you have, for example, $1 million in coverage and the lawyer suing you says he will accept the $1 million, your insurance company should pay if the case is large and serious and you could be held liable for more than the $ 1 million. In this case, the insurance company refused to settle the case against our client and a jury rendered a verdict against our client for much more than the limits of his insurance coverage.

We sued the insurance company for its bad faith refusal to settle the case within the available coverage, and won a settlement of nearly $2 million to compensate our client and make the client whole.


Evan S. Schwartz
Founder of Schwartz, Conroy & Hack