The insured's claim for consequential damages survived the insurer's motion to dismiss. Tiffany Tower Condominium, LLC v. Ins. Co. of the Greater N.Y., 2018 N.Y. App. Div. LEXIS 5783 (N.Y. App. Div. Aug. 22, 2018). 

    Tiffany Tower submitted a claim in November 2012 with Insurance Company of the Great New York for damages sustained by its building during Superstorm Sandy. The insurer paid the original claim in December 2012. Then, in September 2014, Tiffany Tower submitted a supplemental claim for additional losses which it asserted were caused by the storm. The insurer denied the supplemental claim. 

    In October 2014, Tiffany Tower sued the insurer seeking to recover damages for breach of contract. In a second cause of action, they sought to recover consequential damages for breach of the implied covenant of good faith and fair dealing. The insurer moved to dismiss the second cause of action. The motion was denied.

    On appeal, the court found that Tiffany Tower sufficiently stated a cause of action to recover consequential damages for breach of the implied covenant of good faith and fair dealing based upon the insurer's refusal to pay the supplemental claim. The cause of action was not duplicative of the breach of contract cause of action. Breach of the implied duty could result in recoverable consequential damages, which could exceed the limits of the policy. 

   Tiffany Tower alleged they did not have the financial resources to repair the damage to the building and that the insurer's delay in paying the supplemental claim caused the building to continue to deteriorate. Damage to fireproofing and additional water damage were alleged. Therefore, the trial court correctly declined to dismiss the second cause of action to the extent that it was based upon the insurer's failure to pay the supplemental claim.