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1555 Jefferson Road LLC v. Travelers Prop. Cas. Co. of Am.

Good Faith, Fair Dealing Claim Duplicates Contract Breach Claim But May Be Repleaded

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DECISION AND ORDER INTRODUCTION Plaintiff 1555 Jefferson Road LLC (“Jefferson Road”) brings this insurance coverage action against Defendant Travelers Property Casualty Company of America (“Travelers”) seeking declaratory judgment and asserting claims for breach of contract, breach of implied duty of good faith and fair dealing, and bad faith.1 ECF No. 1. Travelers has moved to dismiss Jefferson Road’s breach of implied duty of good faith and fair dealing and bad faith claims. ECF No. 5. Travelers also asks this Court to dismiss Jefferson Road’s request for punitive damages and attorneys’ fees and costs incurred in this action. Id. As explained below, Travelers’ motion is GRANTED. However, as further explained below, the Court will grant Jefferson Road leave to amend its complaint to replead its good faith and fair dealing claim. BACKGROUND This action arises out of Travelers’ alleged failure to defend and indemnify Jefferson Road as an additional insured under one or more insurance policies in connection with a state-court personal injury action (the “Underlying Action”) against Jefferson Road, Sun Chemical Corporation, Sun Environmental Corporation, and AmesburyTruth. See ECF No. 1

2, 9.2 The plaintiff in the Underlying Action claims that he sustained injuries in March 2019 while performing work at 1555 Jefferson Road, Rochester, New York pursuant to an agreement between his employer and AmesburyTruth. Id. 19. Specifically, the plaintiff in the Underlying Action claims that he was injured after being exposed to chemicals as a result of the negligence of Jefferson Road, Sun Environmental Corporation, or AmesburyTruth in failing to provide a safe place to work. Id. 20. AmesburyTruth later commenced a third-party action against the personal injury plaintiff’s employer, alleging that the employer or its subcontractors failed to perform the employer’s work in a reasonably safe manner. Id.

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