Prospect Auto Sales & Repairs, Inc. v State Farm Mut. Auto. Ins. Co.

Holding The Appellate Division reversed the lower court’s grant of summary judgment, determining that the complaint properly sought damages for breach of contract rather than a direct statutory violation. The court held that the defendant failed to meet its prima facie burden because its supporting affidavit was based on hearsay and it failed to provide the survey relied upon to justify its payment amount.

The court’s words

it does not set forth a cause of action to recover damages for violations of Insurance Law § 2601 and 11 NYCRR 216.7 but rather properly seeks to recover damages for breach of contract

2026 NY Slip Op 05431, at the official text

the defendant's argument in that regard is wholly conclusory and unsubstantiated, as the defendant never furnished the survey it purported to rely upon

2026 NY Slip Op 05431, at the official text

the affidavit is not based on personal knowledge but rather improperly relies on hearsay within hearsay

2026 NY Slip Op 05431, at the official text