Bad Faith Claim Dismissed
Zeldin v. Interboro Mut. Indemnity Ins. Co. (NY App., 2nd Dept., Oct. 2, 2007)
Plaintiff, who obtained judgment against insured for injuries sustained in motor vehicle accident, obtained an assignment of insured’s rights under policy and commenced bad faith action against carrier. Court held that dismissal of suit was proper. While plaintiff provided written notice to insurer, the insured did not. Plaintiff, who stands in the insured’s shoes for purposes of this action, was therefore estopped from contending that insurer improperly disclaimed coverage. Significantly, plaintiff did not commence declaratory judgment action in her capacity as injured party. As a result, any defenses that insurer might have had against insured were good as against plaintiff.
