Revisiting ‘Bi-Economy’ and Consequential Damages

In February 2008, the New York State Court of Appeals issued two companion rulings addressing the circumstances in which an insured can seek recovery of consequential damages resulting from an insurer’s breach of the covenant of good faith and fair dealing. We wrote about Bi-Economy Market Inc. v. Harleysville and Panasia Estates Inc. v. Hudson Ins. Co. and the implications of those cases, both authored by Judge Eugene F. Pigott, in our May 2008 Corporate Insurance Law column. Now, almost three years later, we revisit those rulings and review how the cases that have followed have interpreted them.