Key Takeaway
Perlbinder v Vigilant: the settlement judgment, surviving consumer-deception claim and punitive-damages demand, and dismissed emotional-distress claim.
This article is part of our ongoing bad faith coverage, with 16 published articles analyzing bad faith issues across New York State. Attorney Jason Tenenbaum brings 24+ years of hands-on experience to this analysis, drawing from his work on more than 1,000 appeals, over 100,000 no-fault cases, and recovery of over $100 million for clients throughout Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, and the Bronx. For personalized legal advice about how these principles apply to your specific situation, contact our Long Island office at (516) 750-0595 for a free consultation.
Last reviewed: September 2026.
Historical note (September 2026): this note reads a 2021 pleading-stage decision on GBL § 349, punitive damages and emotional-distress claims against insurers. For the current framework see insurance bad faith after a car accident in New York and when punitive damages are available in New York car accident cases.
The decision in context
Perlbinder v Vigilant Insurance Co., 190 AD3d 985, 2021 NY Slip Op 00439, was decided by the Second Department on January 27, 2021.
The dispute followed Hurricane Sandy damage and a mediated homeowners-insurance settlement. It was not an assigned no-fault benefits case.
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The court affirmed summary judgment enforcing the settlement agreement. It also allowed the consumer-deception claim and punitive-damages demand to survive dismissal, but dismissed the emotional-distress demand.
Those are different results at different procedural stages. Survival of a pleading challenge is not an award of punitive damages.
Jason Tenenbaum’s original March 2021 commentary
I think this is perhaps the most consequential bad faith 349 case I have seen in years. It won’t move the needle on Assigned first party NF cases, but can cause heartache to carriers in wage loss first-party cases.
I would venture a guess that this is the precursor of a bad faith statute that will eventually be enacted sometime in the next 0-3 years.
That prediction is preserved as a dated observation, not a statement that a later statute was enacted. The opinion’s homeowners-insurance facts also limit what can be inferred about no-fault wage-loss disputes.
What survived, and what did not
- The written settlement required a final payment without the deduction the insurers sought.
- The allegations under General Business Law § 349 described conduct potentially affecting other consumers.
- The punitive-damages allegations were sufficient at the dismissal stage.
- The contractual relationship did not support the claimed emotional-distress damages.
The opinion discusses Oswego Laborers’ Local 214 Pension Fund v Marine Midland Bank, 85 NY2d 20 (1995), and Wilner v Allstate Insurance Co., 71 AD3d 155 (2010), in analyzing consumer-oriented conduct.
Its emotional-distress discussion is an important limit. A disputed insurance payment is not, by itself, the same claim as emotional harm caused by a physical injury.
Reading the case before using it
Start with the precise relief sought: enforcement of a settlement, a deceptive-practices claim, punitive damages, or emotional-distress damages. Do not treat those remedies as interchangeable.
Then compare the alleged conduct and procedural posture. A case decided on assumed allegations cannot establish that the same allegations were later proved at trial.
For the separate distinction between damages and an independent tort, see emotional distress in personal injury cases.
For coverage-litigation services, see the firm’s no-fault defense practice. The Legal Encyclopedia provides broader procedural reference material.
Connect to the Encyclopedia
- Topic hub: Legal Encyclopedia
- The bad-faith boondoggle that we knew was coming
- Bad-faith claims in no-fault insurance
- Bad faith and GBL 349 has really arrived
- Understanding Public Health Law Bad Faith Claims in New York: Your Right to Sue Insurance Companies
Read the related posts as historical commentary, not a substitute for checking subsequent case treatment before relying on a proposition today.
Legal Context
Why This Matters for Your Case
New York law is among the most complex and nuanced in the country, with distinct procedural rules, substantive doctrines, and court systems that differ significantly from other jurisdictions. The Civil Practice Law and Rules (CPLR) governs every stage of civil litigation, from service of process through trial and appeal. The Appellate Division, Appellate Term, and Court of Appeals create a rich and ever-evolving body of case law that practitioners must follow.
Attorney Jason Tenenbaum has practiced across these areas for over 24 years, writing more than 1,000 appellate briefs and publishing over 2,353 legal articles that attorneys and clients rely on for guidance. The analysis in this article reflects real courtroom experience — from motion practice in Civil Court and Supreme Court to oral arguments before the Appellate Division — and a deep understanding of how New York courts actually apply the law in practice.
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Disclaimer: This article is published by the Law Office of Jason Tenenbaum, P.C. for informational and educational purposes only. It does not constitute legal advice, and no attorney-client relationship is formed by reading this content. The legal principles discussed may not apply to your specific situation, and the law may have changed since this article was last updated.
New York law varies by jurisdiction — court decisions in one Appellate Division department may not be followed in another, and local court rules in Nassau County Supreme Court differ from those in Suffolk County Supreme Court, Kings County Civil Court, or Queens County Supreme Court. The Appellate Division, Second Department (which covers Long Island, Brooklyn, Queens, and Staten Island) and the Appellate Term (which hears appeals from lower courts) each have distinct procedural requirements and precedents that affect litigation strategy.
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