Two New York residents have filed a lawsuit against Hyundai Marine & Fire Insurance Co., Ltd (U.S. Branch), alleging breach of contract and bad faith denial of an insurance claim related to fire damage.
The lawsuit filed by plaintiffs Li Ping Kuan and Jimmy Chein Yueh alleges that Hyundai failed to indemnify them under a valid insurance policy covering their property at 1679 Grove Street in Ridgewood, New York. According to the complaint, the plaintiffs reported a fire that occurred at the insured property on April 30, 2024, and cooperated with Hyundai’s investigation, including attending Examinations Under Oath on September 30, 2024. Despite their compliance, they allege that Hyundai denied their claim in a letter dated January 27, 2025, which rescinded the policy based on alleged misrepresentations regarding the property's use.
Hyundai asserted that the property was used as a boarding or rooming house, which the insurer claims voided the policy. The plaintiffs dispute this characterization, stating that the property consists of three separate apartments rented under standard lease agreements and does not qualify as a rooming house under the New York City Administrative Code. They further claim that Hyundai did not raise these issues during the policy’s issuance or renewal.
The plaintiffs are seeking damages exceeding $850,000 for breach of contract, as well as consequential damages related to Hyundai’s alleged bad faith conduct. The plaintiffs also bring a claim under New York General Business Law §349, alleging deceptive business practices by the insurer, including failing to perform appropriate underwriting inspections and relying on vague policy application language to rescind coverage following a claim.
The plaintiffs are represented by attorney Scott E. Agulnick of Agulnick Kremin P.C. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-02991.