Bad Faith, Unfair Insurance Practices Claims Dismissed In Remediation Coverage Suit

( July 9, 2025, 1:44 PM EDT) -- LAS CRUCES, N.M. — A New Mexico federal judge granted an insurer’s motion to dismiss claims alleging bad faith and violations of New Mexico Unfair Insurance Practices Act (NMUIPA) after determining that the insureds, which are seeking coverage for environmental contamination remediation costs related to the release of a waste byproduct from a gas pipeline, failed to show that the insurer’s reservation of its right to deny coverage was arbitrary or unreasonable....