Panasia Estates, Inc., Respondent v. Hudson Insurance Company, Appellant

Summary

The New York Court of Appeals affirmed the Appellate Division's order rejecting Hudson Insurance's motion for summary judgment and allowing Panasia Estates to pursue consequential damages for breach of the insurance contract. The Court held that the contractual exclusion for consequential loss does not bar recovery of such damages and that the lower courts correctly applied the principle that foreseeable damages may be recovered for bad‑faith breaches. Justice Smith dissented.