Sam Sukup, Respondent v. State of New York, Appellant

Summary

The Court of Appeals held that an insured cannot recover attorney's fees incurred in a dispute with the insurer over coverage absent a showing of bad faith, and therefore reversed the lower court's order awarding such fees. The majority found no allegation or evidence of bad faith and applied established precedent that the duty to defend does not include reimbursement of legal expenses. A dissent argued that the insurer acted in bad faith and should be liable for the fees.