N.Y. Judge Dismisses Breach of Good Faith, Fair Dealing Claim in Sandy Coverage Action

MINEOLA, N.Y. — A New York judge has dismissed a policyholder’s claims of breach of the implied covenant of good faith and dealing, bad faith, and violation of New York’s General Business Law Section 349 asserted against an insurer in a Superstorm Sandy coverage action, finding they are barred under state law.

On May 5, Judge Thomas Feinman of the Nassau County Supreme Court explained that New York law does not recognize a separate cause of action for breach of the covenant of good faith and fair dealing when a plaintiff pleads breach of contract upon the same facts.