INSURANCE LAW: Superior Court awards attorneys fees to insurer where insured engaged in bad faith

The insured’s residence was involved in a fire loss caused by a special needs resident.  The insurer paid for the property damage and for alleged loss of rental income from the Mental Health Association for the special needs residents.  The Association, however, in fact continued to pay rent.  The insurer filed suit to recover the rental loss reimbursement, alleging that the insured dishonestly and intentionally misrepresented its rental loss.  The Superior Court awards the rental reimbursement plus attorney fees and costs.

Merrimack Mutual Fire Ins. Co. v. 4890 Main Street, LLC,  (Dec. 10, 2014)