General Star National Insurance Company v. Liberty Mutual Insurance Company

OPINION OF THE COURT

MANSMANN, Circuit Judge.

The dispute in this ease concerns an insurance company’s duty of good faith in conducting a defense and settlement negotiations on behalf of its insured. We conclude that New York law governed this dispute brought by a Connecticut excess insurer against a Massachusetts primary insurer, alleging a breach of the primary insurer’s duty of good faith owed to its insured, a New York corporation. Although the district court incorrectly applied Pennsylvania law in deciding that the primary insurer did not breach its duty, we conclude that the application…