In Acmat v. Greater New York Mutual Insurance Company, a decision officially released on May 29, 2007, the Connecticut Supreme Court held that policyholders may only recover attorney’s fees in coverage litigation where the insured proves a claim of common-law or statutory bad faith. Up until now, most insureds had been asserting claims for attorney’s fees in coverage litigation even where the only claims were for breach of contract or a declaratory judgment. Because common-law and statutory bad faith claims are much harder to prove, this decision is very favorable to the insurance industry – it significantly limits the exposure of carriers involved in coverage litigation.