Judge Arthur Spatt
Fortelni's boat, insured by Great Lakes, was extensively damaged in Florida after seawater flooded its engine compartment. Although its surveyor-investigator recommended paying Fortelni's claim, Great Lakes refused to pay for the boat's $250,000 in damages, asserting the damage not accidental. Great Lakes claimed the boat was unseaworthy due to wear and tear, deterioration and corrosion, and thus not covered by its policy. Great Lakes sought a declaration that Fortelni breached the policy's warranty of seaworthiness requirement, and thus their insurance agreement, relieving it from liability. The court dismissed Fortelni's counterclaim asserting entitlement to attorney fees because Great Lakes's disclaimer of coverage constituted an act in bad faith under Ingersoll Milling Machine v. M/V Bodena. He failed to state a claim. Despite relying on a website describing Great Lakes' agent's history of bad faith litigation, he did not cite any case where a court considered an insurer's history of bad faith litigation indicative of current bad faith in disclaiming coverage. The fact that Great Lakes' surveyor-investigator recommended payment of Fortelni's claim showed a mere difference of opinion not indicative of an insurer's bad faith in denying coverage.
