In This Issue:

- Southern District of New York: It is Unlawful for an Insurer to Withhold Payment When Some Portion on an Insured’s Entitlement is Undisputed

- Eastern District of Pennsylvania: State Farm Cannot Refuse Appraisal of Superstorm Sandy Damage

- Eastern District of Pennsylvania Denies Bad Faith Claim in Homeowner’s Policy Dispute

- Eleventh Circuit: Florida Law Does Not Equate Mere Negligence with Bad Faith

- Excerpt from "Southern District of New York: It is Unlawful for an Insurer to Withhold Payment When Some Portion on an Insured’s Entitlement is Undisputed"

- On July 10, 2013, the Southern District of New York ruled that National Union Fire Insurance Company of Pittsburgh, Pennsylvania (“National Union”) had a contractual duty to defend MGA Entertainment, Inc. (“MGA”) in connection with a copyright infringement brought by Bernard Belair against MGA (the “Belair action”). The ruling entitled MGA to recover attorneys’ fees incurred in connection with its defense in the Belair action. Because MGA had settled with its attorneys for an amount less than originally billed, National Union’s exact obligation to MGA remained in dispute. On June 10, 2014, the court found that National Union was obligated to pay MGA a total of $2.4 million, plus pre-judgment interest.