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Case Briefs

BY ALM Staff
September 29, 2009

Multiple Unfair Practices Regarding One Claim Are Not a 'General Business Practice'

In Bacewicz, et al., v. NGM Ins. Co., et al., 3:08-cv-01530 (D. Conn. June 30, 2009), the U.S. District Court for the District of Connecticut recently granted, in part, an insurer's motion to dismiss on the basis that the insured could not prove a violation of the Connecticut Unfair Insurance/Trade Practices Acts because allegations of multiple unfair practices in dealing with a single insurance claim are not sufficient to constitute a “general business practice.”

The insured plaintiffs filed a lawsuit against their insurer alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and unfair and deceptive practices in violation of the Connecticut Unfair Insurance Practices Act (“CUIPA,” Conn. Gen. Stat. ' 38a-816) as a result of the insurer's denial of coverage for damage to the basement walls in the plaintiffs' home. The insureds alleged that the insurer engaged in dishonest conduct that was aimed at delaying the response to plaintiffs' insurance claim to create an “untimely filing” defense and thus bar any action against the insurer. The insurer moved to dismiss the bad faith and CUIPA counts.

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