Opinion
June 15, 1967
Appeal from the Erie County Court.
Present — Williams, P.J., Bastow, Del Vecchio and Marsh, JJ.
Judgment and order unanimously reversed and determination of the City Court of Buffalo reinstated, with costs to plaintiff to abide the event. Memorandum: The complaint states a legally sufficient cause of action for money damages over which the City Court of Buffalo has jurisdiction. This complaint should not have been dismissed as a matter of law. It appears that defendant's rejection of the plaintiff's claim, based on its own interpretation of its contract of insurance, was arbitrary and unreasonable. An interpretation such as this, in order to be sustained, must have been reasonable, fair and in good faith. ( Boston Rd. Shopping Center v. Teachers Ins. Annuity Assn., 13 A.D.2d 106; Bruce Co. v. Simpson Co., 40 Misc.2d 501; Cowden v. Broderick Calvert, 108 S.W.2d 562 [Tex. Civ. App.], affd. 131 Tex. 434 .) The ultimate interpretation of the contract is for the court, and the questions of fact involved should be developed and determined at trial.