An appellate court in New York has set forth the minimum pleading requirements for bad faith claims against insurers. According to Insurance Business America, the appeals court has established that there are no heightened pleading requirements consequential damages in bad faith claims. In the underlying case, the insurer argued that when pleading the foreseeability of consequential damages, the plaintiff should be required to explain in some detail how the damages were reasonably foreseeable. The court rejected this heightened pleading requirement.

Additionally, the insurer was attempting to argue that the bad faith claim was duplicative of the breach of contract claim and this argument was also rejected by the appellate court. The court again set forth that New York recognizes both claims and if the breach of contract claim and bad faith claim are pled properly, they are not necessarily duplicative. 

Written by:   Alexandra Siskopoulos, Esq.

Telephone:   (646) 942-1798

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