Quick Response Commercial Division v. AON Risk Services of Illinois

Insurance Law

New York Law Journal


District Judge Thomas McAvoy

AON was agent for and administrator of Lexington's policy to Elks Lodge 2192 which sustained fire and water damage in Oct. 2011. Lexington accepted the claim as a covered loss. The Lodge hired Quick Response to inspect and repair damages. The Lodge paid $134,973 of Quick's $342,136 invoice. After Lexington reimbursed it $1324,973 the Lodge assigned its policy rights to Quick which sued Lexington for the invoice's unpaid balance, claiming Lexington breached both the insurance contract and the implied duty of good faith and fair dealing. The court dismissed Quick's implied covenant breach claim, as well as its claim for attorneys' fees and litigation costs. In addition to finding the implied covenant breach claim duplicative of Quick's contract breach claim the court, citing New York Univ. v. Continental Ins. Co. and Fabrizio v. Erie Ins. Co., found Response did not allege sufficient facts plausibly showing tortious activity let alone the egregious conduct needed to satisfy an independently grounded implied covenant claim. The court concluded that Quick's implied covenant breach claim merely restated its cause of action for breach of the insurance contract.

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