Connecticut Office Owner Sues Insurer for Denying Coverage in Bad Faith

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(USA Herald) – This is the case of Atlantic Street Heritage Associates LLC v. Citizens Insurance Co. of America, in the U.S. District Court for the District of Connecticut.

Atlantic Street Heritage Associates LLC., is the owner of The Heritage Building, located in Stamford, Connecticut, whose roof partially collapsed due to rain.

Citizens Insurance Co. of America, a unit of Hanover Insurance Company, issued a policy to Atlantic Street that provided compressive coverage for the Heritage Building. At the time the damage was sustained, Atlantic Street was insured for up to $4.1 million, according to the complaint filed on Friday.

This week Atlantic filed suit against Citizens Insurance, alleging the insurer denied its claim in bad faith and continually asserted a basis for denying coverage that it knew was false.

Atlantic Street, who is represented by James T. Shearin and Thomas Lambert of Pullman & Comely LLC, told a federal court on Friday that Citizens and its parent company, The Hanover Insurance Co., acted on “sinister motive” to evade making payment on a claim for damages resulting when several roof supports at its office building buckled causing a partial roof collapse.