The concept that an insured can seek damages against its insurer above and beyond the limits of its policy is a somewhat unsettled concept in New York.  Acquista v. New York Life Ins. Co. is an insured’s favorite case because the Appellate Division, First Department held in that case that an insured could indeed recover extra-contractual damages.  Since Acquista, the federal courts in New York have heavily criticized it and it hasn’t been cited enough to gain momentum.

Does the First Department’s in Panasia Estates, Inc. v. Hudson Ins. Co. change that?  In Panasia, the First Department concluded that the trial court correctly denied the insurer’s motion to dismiss regarding the insured’s claim for extra-contractual damages.  Guess what case the First Department cited for that proposition?  You got it: Acquista.

Don’t fear insurers . . . The Appellate Division, Second Department recently rejected Acquista in Paterra v. Nationwide Mut. Fire Ins. Co.

Thanks Dan for the head’s up on this case.