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INSURANCE COVERAGE: Insurer successfully proves no bad faith in defense case

The defendant, Versailles Medical Spa, was sued by a nonparty patient for injuries sustained during medical treatment. The plaintiff, Admiral Insurance Company, filed suit seeking a declaratory judgment that it had no duty to defend Versailles Medical Spa because the claim was made prior to the policy. Versailles then filed a counterclaim alleging four counts of bad faith against the insurer. Versailles moved for summary judgment as to Admiral’s claim and Admiral filed a motion for partial summary judgment as to Versailles’ counterclaims. “Under [the] precedent” of the Connecticut Supreme Court, “a bad faith action must allege denial of the receipt of an express benefit under the [insurance] policy.” Bad faith means more than mere negligence; it involves a dishonest purpose. After proving that the plaintiff neither denied the defendant of a benefit under the policy nor acted by any dishonest purpose in bringing the declaratory action, the court denied Versailles’ motion for summary judgment and granted the insurer’s motion for summary judgment as to the counterclaims. Admiral Ins. Co. v. Versailles Med. Spa LLC, No. 3:20-CV-0568 (JCH), 2022 WL 14813522 (D. Conn. Oct. 25, 2022)