Fourth Department – Insurance: Dog Day’s Inc. v. Hartford Fire Insurance Company

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Appellate Division, Fourth Department – Insurance – Duty of Good Faith – Property Loss Valuation

Dog Day’s Inc. v. Hartford Fire Insurance Company

CA 14-00017

Appealed from Erie County, Supreme Court

Background: The plaintiff insured filed a claim on its fire insurance policy after suffering property loss in a fire. The defendant paid the plaintiff paid the cash value for the losses and eight monthly payments for business interruption. The plaintiff alleged breach of contract and breach of duty of good faith and fair dealing after the defendant suspended the payments for business interruption. The plaintiff appealed from the grant of summary judgment to the defendant.

Ruling: The Appellate Division affirmed. The court held that, despite the evidence presented by the plaintiff with respect to the assessed value of the property and the amount it extended to repair and restore the property, the plaintiff did not challenge the actual cash value figure. Further, the insurance policy provided that business interruption payments only applied during periods of restoration, but during the eight months of payments, the plaintiff made no effort to rebuild the premises.

Jeanne M. Vinal of Vinal & Vinal for the plaintiff-appellant; Fallyn Cavalieri of Goldberg Segalla for the defendant-respondent