Goldmark, Inc. v. Catlin Syndicate Limited, 2011 U.S. Dist. LEXIS 18197 (2011)

Consequential damages for breach of insurance contract are limited to circumstances where insurer also breached the implied duty of good faith and fair dealing.

In the framework of insurance contracts, New York law allows for consequential damages upon a breach of good faith and fair dealing only if those damages were contemplated by the parties at the time of or prior to establishing the contract. Moreover, New York generally does not recognize both a claim for bad faith denial of an insurance claim and a claim for breach of contract because they are considered to be duplicative.

Case Law Alert - 2nd Qtr 2011