Buffalo City Cemetery v Netherlands Ins. Co.

Holding The court held that a justiciable controversy existed for declaratory relief regarding the insurer’s duty to defend, as the policy endorsement was susceptible to more than one reasonable interpretation. However, the court modified the lower court’s order to dismiss the plaintiff’s claims for punitive damages and attorneys’ fees, as no independent tort or contractual basis supported such recovery.

The court’s words

The question whether the Funeral Homes or Cemeteries endorsement expanded the definition of bodily injury so as to encompass 'mental anguish' cannot properly be resolved on a pre-answer motion to dismiss inasmuch as the endorsement is susceptible to more than one reasonable interpretation

2026 NY Slip Op 04602, at the official text

There are simply no claims by BCC in this action that would permit the recovery of punitive damages, such as egregious conduct or 'an independent tort . . . of the egregious nature set forth in [case law ] . . . directed to [the] plaintiff[] . . . and . . . part of a pattern directed at the public generally'

2026 NY Slip Op 04602, at the official text

BCC's claim for attorneys' fees 'is governed by the general rule that attorneys' fees and other litigation expenses are 'incidents of litigation' that the prevailing party may not collect 'from the loser unless an award is authorized by agreement between the parties or by statute or court rule''

2026 NY Slip Op 04602, at the official text