Sunday, December 1, 2013

Inchaustegui v. 666 5th Avenue Limited Partnership case brief

Inchaustegui v. 666 5th Avenue Limited Partnership case brief summary
268 A.D.2d 121 (2000)


CASE SYNOPSIS
Appellant landlord appealed the order of the New York County Supreme Court (New York), limiting their recoverable damages to the cost of purchasing the insurance that appellee tenant had failed to purchase on their behalf, a breach of the parties' lease agreement.

CASE FACTS
Appellant was sued by plaintiff for injuries sustained while on the premises leased by appellee from appellant. Appellant brought an action against appellee, alleging appellee breached a lease provision requiring it to obtain liability insurance covering appellant. In granting appellant's motion for summary judgment, the trial court limited appellant's damages to the cost of obtaining insurance.

DISCUSSION

  • On appeal, the court affirmed the order, holding that because appellant obtained substitute insurance, it was entitled to recover the cost of the policy's purchase for appellee's breach of contract. 
  • The court held that appellant was also entitled to damages for any expenses arising out of the liability claim that were not covered by appellant's substitute insurance policy. 
  • The court also held that the collateral source rule was inapplicable because it was not setting off the damages to which appellant was entitled by the amount paid by the substitute insurance.

CONCLUSION
Order modified so as to award appellant additional damages for any expenses arising out of the underlying liability claim that were not covered by appellant's substitute insurance policy. As modified, order affirmed.

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