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Successful Settlement Achieved in Insurance Dispute

Kane Kessler obtained a successful settlement in a breach of contract action and bad faith claim against an insurance carrier in the United States District Court, Southern District of New York, seeking recovery of insurance proceeds, attorneys fees and other consequential damages in connection with a fire that destroyed the clients’ house. The insurance company denied coverage and rescinded the insurance policy on the basis that the client purportedly had made material misstatements in the insurance application. Through aggressive discovery, Kane Kessler uncovered fundamental flaws with the insurance carrier’s basis for declining coverage. The case quickly settled after the Court ordered the insurance company to produce communications with its attorneys concerning denial of the claim, which Kane Kessler successfully argued were not protected by the attorney-client privilege under New York law.