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PAVIA v. STATE FARM INS. CO.

82 N.Y.2d 445 (1993)

626 N.E.2d 24

605 N.Y.S.2d 208

Frank Pavia, Respondent, et al., Plaintiffs, v. State Farm Mutual Automobile Insurance Company, Appellant.

Court of Appeals of the State of New York.

Decided November 18, 1993.

Attorney(s) appearing for the Case

Rivkin, Radler & Kremer, Uniondale (Evan H. Krinick, John M. Denby and Evan S. Schwartz of counsel), for appellant.

Schapiro & Reich, Lindenhurst (Steven M. Schapiro of counsel), and Richard J. Sgarlato, P. C., Staten Island, for respondent and plaintiffs.

Maloney & Porcelli, New York City (Joseph E. Porcelli of counsel), for National Association of Independent Insurers, amicus curiae.

Meyer, Suozzi, English & Klein, P. C., Mineola (Joseph A. Suozzi and Michael A. Ciaffa of counsel), for New York State Insurance Association, amicus curiae.

Chief Judge KAYE and Judges SIMONS, HANCOCK, JR., BELLACOSA, SMITH and LEVINE concur.

TITONE, J.

In this action premised on the defendant insurer's alleged bad-faith failure to accept a settlement offer made by plaintiff's counsel in a personal injury action, the principal issue is whether the evidence adduced at trial was sufficient to establish "bad faith." We conclude that the insurer's failure to respond to plaintiff's time-restricted demand for settlement within the full policy limits, at...

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