General Star National Insurance Co. v. Liberty Mutual Insurance Co‪.‬

Opinion OF THE COURT MANSMANN, Circuit Judge. The dispute in this case 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 of New York law to the facts requires the same result. We will therefore affirm the judgment of the district court.