Parks v. Cambridge Mutual Fire Insurance

Order unanimously modified and, as modified, affirmed, without costs, in accordance with the following memorandum: Punitive damages are not recoverable in an action against an insurance company based upon a claim of wrongful and bad-faith refusal to pay under the terms of a policy of fire insurance. Allegations of breach of an insurance contract, even a breach committed willfully and without justification, are insufficient to authorize such recovery {TJniland Dev. Co. v Home Ins. Co., 97 AD2d 973; Reifenstein v Allstate Ins. Co., 92 AD2d 715). Since plaintiffs’ action is grounded upon private…