New York does not recognize a separate cause of action for the implied covenant of good faith.

This action arose from a claim submitted under a homeowners’ insurance policy that the insured held with Hartford Insurance Company. The insured argued that the insurer had refused to acknowledge the occurrence and refused to adjust the claim. The insured filed suit alleging breach of contract, breach of the duty of good faith and violations of New York State insurance laws. The insurer filed a 12(b)(6) motion to dismiss, with respect to the breach of the duty of good faith count, which went unopposed by the insured. The insurer argued that New York law does not recognize separate causes of action for breach of the implied covenant of good faith and breach of contract under the same set of facts. Because the insured’s allegations were duplicative with respect to the breach of contract and the breach of the duty of good faith claims, the good faith claim was dismissed. While the insurer did not challenge the breach of contract and violations of the New York insurance law claims, the court, nonetheless, dismissed those claims as well because they did not comply with the pleading requirement set forth in Federal Rule 8. The insured’s complaint contained only broad, vague, and generalized allegations and did not provide any specific details with respect to the alleged loss. The insured also failed to identify which New York insurance laws the insurer had allegedly violated. Therefore, those claims were dismissed without prejudice.

Case Law Alerts, 3rd Quarter, July 2014