November 21, 2021: By: Joseph G. Harraka, Jr., Esq.
Chief Judge Freda L. Wolfson of the District Court of New Jersey recently ruled in Microbilt Corporation v. Certain Underwriters at Lloyd’s London and CFC Underwriting Limited (Civil Action No. 20-12734 (FLW)) that an insurer’s failure to timely pay its insured’s defense fees after acknowledging that it owed the insured a defense obligation for an underlying action under its policy could form the basis for a breach of contract claim and a claim for breach of the implied covenant of good faith and fair dealing set forth in that policy contract.