A claim for breach of covenants of good faith and fair dealing requires the plaintiff to plead a distinct factual basis.

This insurance coverage dispute involves claims by the plaintiff for supplementary benefits under two insurance policies for injuries he suffered in a car accident. Before the court were motions by the defendant GEICO pursuant to Fed. R. Civ. P. 12(b)(6) to dismiss the plaintiff's claims alleging that the defendants breached implied covenants of good faith and fair dealing in their insurance policies. The defendants argued that the plaintiff's claims failed to state claims upon which relief could be granted under New York law because they merely duplicated the plaintiff's breach of contract causes of action. The defendants' motions to dismiss the plaintiff's claims for breaches of covenants of good faith and fair dealing were granted without prejudice due to the plaintiff's failure to plead distinct factual basis for his theory of extra-contractual liability.

Case Law Alerts - 2nd Quarter 2013