On May 29, 2024, the Northern District of New York upheld insurance policyholders’ right to pursue bad faith claims and consequential damages when an insurance company unreasonably delays and denies claims.  In PAR Technology Corp. v. Travelers Property Casualty Co. of America, No. 6:22-cv-1121, 2024 WL 2747823, Chief District Judge Brenda K. Sannes denied Travelers Indemnity Company’s (Travelers) pre-answer partial motion to dismiss plaintiff PAR Technology Corporation’s (PAR) action alleging claims for breach of contract, bad faith, and violation of New York General Business Law (GBL) §349.

Sannes ruled that PAR’s complaint clearly delineated consequential damages that were not duplicative of alleged breach of contract damages, and that PAR properly pleaded consumer-oriented conduct that violated GBL §349.