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NY Insurance Cases Cut Back Consequential Damages Claims
Review of recent New York decisions denying insured’s consequential damage claims for alleged covenant of good faith and fair dealing breach.
June 4, 2014
Claude Monet once said, “[A] landscape does not exist in its own right, since its appearance changes at every moment, but the surrounding atmosphere brings it to life.” In the last six months, numerous decisions from New York and the federal government have colored the atmosphere for insureds seeking consequential damages against insurance companies based on their alleged breach of the covenant of good faith and fair dealing — and the atmosphere is bleak.
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