No Bad Faith by Settling Unconstitutional Strip Search Cases Requiring the Insured to Fund the Settlement
Summary: The County unconstitutionally strip searched multiple arrestees between 1999 and 2002. Recognizing the defenseless nature of the case, Selective Insurance Company of America (Selective) and retained counsel, settled the case, funded the settlement, and then sued the County to recover the multiple deductibles paid. The courts below determined the County owed a deductible paid on its behalf, assessed all defense costs and fees to one plaintiff, and rejected the County’s bad faith claim. The highest court in New York affirmed.