New York Court of Appeals Denies Harleysville's Motion for Reargument

The New York Court of Appeals on June 5 denied Harleysville Insurance Company of New York's motion to reargue Bi-Economy Market Inc.'s bad faith case against it.

On Feb. 19, the majority found that consequential damages resulting from a breach of the covenant of good faith and fair dealing may be asserted in an insurance contract context, as long as the damages were "within the contemplation of the parties as to the probable result of a breach at the time of or prior to contracting," quoting Kenford Co. v. County of Erie (73 NY2d 312, 319 [1989]).

The majority reversed the Supreme Court Appellate Division, finding that Bi-Economy's claims for consequential damages, including the demise of its business, cannot be dismissed on summary judgment because they were "reasonably foreseeable and contemplated by the parties."