Anapol Weiss Partners David S. Senoff and Miriam Barish have filed a lawsuit in Philadelphia County against insurer Ironshore Specialty for its alleged improper denial of a law firm’s claim.
The lawsuit seeks to hold the insurance company accountable for nearly $3 million that Fineburg Law Associates PC had to spend to defend a former partner against federal charges that he helped plunder FirstPlus Financial Group Inc. after its extortionate takeover – charges on which he was ultimately acquitted. The law firm claims the insurance company improperly denied the firm’s claim seeking coverage for legal costs incurred before a federal jury prior to the acquittal.
According to the complaint, the denial of coverage and benefits after the acquittal “…was unreasonable, made in bad faith, and showed a reckless disregard for [Ironshore’s] contractual obligations and duties of good faith and fair dealing.”
The lawsuit alleges Ironshore sent the firm a letter denying coverage in December 2011. The insurer’s denial was due in part to the fact that the policy could not be applied to deliberately fraudulent or criminal acts. However, the suit argues that Ironshore did not consider the acquittal of the charges and therefore acted against its contractual obligations.
Insurance companies owe a duty of good faith and fair dealing to the people they insure. When insurers discount, delay or deny payment of insurance claims, they may be violating the terms of their policies and the law. Anapol Weiss is a leader in Pennsylvania bad faith law and bad faith litigation – at the helm of which is Shareholder David S. Senoff. For decades, Senoff has represented numerous victims whose insurance companies violated their policies by denying claims. Holding companies accountable for these violations can prevent more people and companies from becoming victims of insurance bad faith in the future.