High Court Finds No Bad Faith Conduct, Vacates Attorney's Fees Award

HARTFORD, Conn. - The Connecticut Supreme Court has vacated an award of attorney's fees to an asbestos defendant that prevailed against its insurer in a declaratory judgment action, saying the party failed to prove that the insurer acted in bad faith. ACMAT Corp. v. Greater New York Mutual Insurance Co., No. SC17740 (Conn. Sup. Ct.).

In a May 29 opinion, the high court said the trial court erred by adopting a common-law exception to the American Rule to award attorney's fees to ACMAT Corp.

Since 1950, ACMAT has installed acoustical ceilings in commercial buildings, and beginning in 1988, the company …