GBL Claim Fails for Lack of Broad Impact on Consumers at Large

On November 8, 2023, the Second Department issued a decision in Multani v. Castlepoint Ins. Co., 2023 NY Slip Op. 05614, holding that a GBL claim failed for lack of a broad impact on consumers at large, explaining:

To successfully assert a claim under General Business Law § 349(h), a plaintiff must allege that a defendant has engaged in (1) consumer-oriented conduct that is (2) materially misleading and that (3) plaintiff suffered injury as a result of the allegedly deceptive act or practice. Parties claiming the benefit of General Business Law § 349(h) must, at the threshold, charge conduct that is consumer oriented. While private contract disputes unique to the parties would not fall within the ambit of the statute, relief under the statute is not automatically barred by the fact that the business transaction stems from an insurance policy. Here, the defendant was entitled to summary judgment dismissing the cause of action alleging a violation of General Business Law § 349. The defendant’s valid denial of coverage based on the configuration of the subject property as something other than a residence premises does not have a broad impact on consumers at large. In opposition, the plaintiff failed to raise a triable issue of fact. In particular, evidence of the defendant’s administrative practices with respect to insurance applications did not create a triable issue of fact as to whether the denial of coverage based on the particular configuration of the subject property has an impact on consumers at large.

(Internal quotations and citations omitted).

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