In Liberty Surplus Ins. Corp. (“Liberty”) v. Segal Co. (“Segal”), Nos. 04-5562-cv & 04-6005-cv, 2005 U.S. App. LEXIS 16601, 2005 WL 1869146 (2d Cir
NY: Insured's Entitlement to Declaratory Action Attorneys' Fees Is Limited to Two Instances
In <i>Liberty Surplus Ins. Corp.</i> ("Liberty") <i>v. Segal Co.</i> ("Segal"), Nos. 04-5562-cv & 04-6005-cv, 2005 U.S. App. LEXIS 16601, 2005 WL 1869146 (2d Cir. Aug. 9, 2005), in a per curiam opinion, the Second Circuit reaffirmed its view that New York allows awarding a successful insured its declaratory action attorneys' fees in two instances: 1) where the "policyholder has been cast in a defensive position by its insurer in a dispute over the insurer's duty to defend," or 2) where the insurer is guilty of bad faith.
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