Search
 

New York Court Reaffirms Policyholder's Right to Seek Consequential Damages for Breach of Insurance

The New York Court of Appeals denied an insurance company's motion for reargument of a decision that affirmed a key principle of the insurance contract on June 6, reaffirming a decision delivered on

By Patrick Stevenson | Updated on June 10, 2008

The New York Court of Appeals denied an insurance company’s motion for reargument of a decision that affirmed a key principle of the insurance contract on June 6, reaffirming a decision delivered on February 19, 2008. The Court of Appeals upheld the lower court’s decision in Bi-Economy Market, Inc. v. Harleysville Insurance Company of New York, et al., which held that policyholders can seek consequential damages if their business collapses as a result of the insurance company’s failure to fulfill its contractual obligations.

The Court of Appeals held that “it is well settled that in breach of contract actions ‘the nonbreaching party may recover general damages which are the natural and probable consequence of the breach’” and that “when an insured…suffers additional damages as a result of an insurer’s excessive delay or improper denial, the insurance company should stand liable for these damages.”

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.