Implied Covenant Claim Seeking Different Damages not Duplicative of Contract Claim

On November 19, 2024, the First Department issued a decision in Starr Indem. & Liab. Co. v. Monte Carlo, LLC, 2024 NY Slip Op. 05779, holding that a counterclaim for breach of the implied covenant of good faith and fair dealing was not duplicative of a breach of contract counterclaim because it sought different damages, explaining:

The fourth counterclaim for breach of the implied covenant of good faith is not duplicative of the breach of contract counterclaim. The breach of contract claim deals only with policy 810. By contrast, the breach of implied covenant of good faith and fair dealing claim involves all three policies (809, 810, and 811), and relies upon different facts and seeks different damages.

(Internal quotations and citations omitted).

Stay Informed

Get email updates anytime we publish to one or all of our blogs.

Stay informed!
Sign up for email alerts and notifications here.
Read more about our Complex Commercial Litigation practice.