On November 9, 2023, the First Department issued a decision in Equitable Fin. Life Ins. Co. v. Chanti, 2023 NY Slip Op. 05659, holding that an infliction of emotional distress claim for injuries arising as a consequence of a commercial transaction failed, explaining:
Plaintiff does not adequately allege a cause of action for negligent infliction of emotional distress. Even if such a claim can be premised on the breach of the type of duties that might arise between a financial advisor and client, plaintiff’s complaint otherwise fails to state a cause of action because emotional injury is generally compensable only when it is the direct, rather than consequential, result of the breach of a duty owed.
(Internal quotations and citations omitted).