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M & B APARTMENTS, INC. v. TELTSER

745 A.2d 586 (2000)

328 N.J. Super. 265

M & B APARTMENTS, INC., Plaintiff, v. Milton TELTSER, Belle Teltser, Sylvia Sherman, Margaret Sharfstein, 396 Union Avenue Associates, L.P., Dan Sawicki, General Star Indemnity Co., Hartford Fire Insurance Company and Vigilant Insurance Co., Defendants, and Federal Insurance Co., Defendant-Respondent, v. North American Specialty Insurance Co., Defendant-Appellant.

Superior Court of New Jersey, Appellate Division.

Decided February 16, 2000.

Attorney(s) appearing for the Case

Paul A. Sandars, III, Roseland, for appellant (Lum, Danzis, Drasco, Positan & Kleinberg, attorneys; Mr. Sandars, of counsel and on the brief with Lisa A. Firko and Julia E. Romero).

Jeffrey M. Winn, admitted pro hac vice, for respondent (Gallo, Geffner, Fenster, attorneys; Joseph K. Powers, Anthony J. Andolino and Mr. Winn, on the brief).

Before Judges HAVEY, KEEFE and LINTNER.

The opinion of the court was delivered by HAVEY, P.J.A.D.

The central issue raised by this appeal is whether defendant Federal Insurance Company (Federal), a second-tier excess insurance carrier, owes a duty to defendant North American Specialty Insurance (NAS), a third-tier excess carrier, to negotiate and settle in good faith an insureds' first-party property loss claim in accordance with the principles enunciated in Rova Farms Resort, Inc. v. Investors Ins....

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