Community Network Serv., Inc. v. Verizon N.Y., Inc

In Community Network Serv., Inc. v. Verizon N.Y., Inc. (39 AD3d 300 [1st Dept 2007]), the Appellate Division, First Department, recently allowed a suit similar to the present case to proceed where a plaintiff sought lost profits from Verizon. Plaintiff was "a reseller of telephone services over lines provided by [Verizon]" (at 300). Its complaint alleged that Verizon had billed and been paid for a telephone feature which was not actually provided and, when the plaintiff stopped paying for the feature allegedly not provided, Verizon denied the plaintiff access to its network for nonpayment. The court allowed plaintiff to pursue lost profits as consequential tort damages for gross negligence or willful misconduct specifically holding: "Since there is no dispute that the governing Public Service Commission tariffs limit defendant's liability for service omissions to gross negligence or willful misconduct, and since plaintiff is seeking consequential tort damages in the form of lost profits, the applicable statute of limitations is three years" (Id. at 301.)