Advertising Disclosure Email Disclosure

New Jersey federal court reaffirms that, absent special circumstances, an insurer does not owe a fiduciary duty to an insured.

October 1, 2017
Degennaro v. American Bankers Insurance Company of Florida, 2017 U.S. Dist. LEXIS 96372 (D.N.J. June 22, 2017)

In a coverage dispute encompassing several claims, an insured alleged its insurer breached its fiduciary duty. The court acknowledged there are circumstances where an insurer owes a fiduciary duty, but it recognized that these are limited. For example, when “an insurer, acting as an agent to the insured when settling claims, owes a fiduciary duty,” and “an insurance company owes a duty of good faith to its insured in processing a first-party claim.” Without these types of special circumstances, a claim for breach of fiduciary duty cannot survive when the parties are acting in a normal contractual posture.


Case Law Alerts, 4th Quarter, October 2017

Case Law Alerts is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2017 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. This article may not be reprinted without the express written permission of our firm.

Affiliated Attorney

Practice Areas

Before you send this email please note:

You are attempting to send email, through a link on our website, to an attorney of Marshall Dennehey Warner Coleman & Goggin or an employee in our firm. Please note that your email may not be treated as confidential and does not create an attorney-client relationship. You should not rely upon the transmission of an email through this website if you are seeking to enter into such a relationship. Until such time as we have agreed to represent you, no information in your email will be treated as confidential. Please contact us directly by telephone at 1.800.220.3308 if it is your intent to seek legal counsel with our firm or convey confidential information.

If it is still your intent to send this email, knowing that it may not be treated as confidential, you may accept our terms of agreement by pressing "OK". If you choose not to accept these terms of agreement you may navigate away from this page by pressing "Cancel."