Bi-Economy Market, Inc. v. Harleysville

In Bi-Economy Market, Inc. v. Harleysville, 10 NY3d 187 (Ct of Appeals 2008) the court held that plaintiff was entitled to extra contractual consequential damages as the result of the defendant's bad faith handling of plaintiff's claim. . The Court found plaintiff was entitled to the damages for ongoing business interruption as they were reasonably contemplated by the parties prior to contracting and a "natural and probable consequences of the breach". The Court stated that the reason the insurer company should be held liable for consequential damages was "not to punish the insurer, but to give the insured its bargained for benefit". (Id at 195, 510.)