Promissory Estoppel Doctrine Bars Insurer from Denying Coverage for Superstorm Sandy Damage, N.Y. Judge Rules

MINEOLA, N.Y. — A New York state judge has ordered an insurer to pay a couple $4,500 for property damage caused by Superstorm Sandy, ruling that because the insurer sent an email stating that a check had been mailed, the doctrine of promissory estoppel bars it from denying coverage.

In an April 30 order, Judge Julianne T. Capetola of the Nassau County Supreme Court explained that the email constituted “a clear and unambiguous promise to pay out on the insurance claim,” which plaintiffs “reasonably and foreseeably relied upon.”

Catherine and Bernard LaBombard alleged that a Tri-State Consumer Insurance Co. representative …