Shattuck v. Dryden Mutual — Wrongful Disclaimer Is Anticipatory Repudiation, Bad Faith Claims Reinstated
The Fourth Department held that Dryden Mutual’s wrongful coverage disclaimer was an anticipatory repudiation excusing the insured from forwarding suit papers, barring the insurer from challenging the $2.8 million default judgment in a § 3420 direct action, and requiring reinstatement of bad faith claims under the Pavia “gross disregard” standard.