In its recent decision, the Appellate Division (1st Dept.) of the New York Supreme Court may have provided insurers with another basis to dismiss arguably duplicative claims arising from Super Storm Sandy. In Orient Overseas Associates v. XL Insurance America, Inc., the Appellate Division considered whether, in a case in which a breach of contract claim was already plead against an insurer based on its alleged failure to pay for damages covered under its policy, this same conduct may provide the basis …
Continue ReadingTag: Superstorm Sandy
Earth, Wind, and Water: New York Court Enforces Anti-Concurrency Clause In Superstorm Sandy Case
In Clarke v. Travco Insurance Company, 2015 U.S. Dist. LEXIS 104267 (SDNY, August 7, 2015), a federal judge sitting for the United States District Court, Southern District of New York granted a homeowners insurer summary judgment in a dispute with its policyholder regarding coverage for a Superstorm Sandy claim.
The homeowner was insured for first-party property damage to his home pursuant to a standard homeowners policy. His home, located near the Hudson River, sustained damage as a result of flood water during the storm. …
Continue ReadingNo Business Loss Coverage for Sandy Flooding
A Southern District Court judge ruled that an insurer was not required to pay lost business coverage after Superstorm Sandy due to a flood provision contained in the policy. In this case, a law firm sought coverage from its insurer when its lower Manhattan office was evacuated due to flooding from the Sandy Storm.
The insured law firm sought coverage under the policy’s civil authority provision and moved for summary judgment while the insurer cross moved for summary judgment because flood was not a covered …
Continue ReadingJudge Throws Out Yacht Club’s Hurricane Sandy Suit: Insurer Must Be Allowed to Inspect “Damaged” Property
A District of New Jersey Federal Judge dismissed a yacht club’s case with prejudice and ordered the yacht club to show cause for why its counsel should not be sanctioned for filing a baseless claim after the yacht club refused to let the insurer inspect its property after making a claim.
The Judge stated that the yacht club refused to let the insurer inspect its property, yet claimed $540,000 worth of wind damage to its buildings from Superstorm Sandy. After the initial claim was made, …
Continue ReadingNew York Court Reaffirms Limitations on Policy Claims Arising Out of Superstorm Sandy
In Sikarevich Family L.P. v. Nationwide Mutual Insurance Co., No. 13-cv-05564, 2014 U.S. Dist. LEXIS 92254 (E.D.N.Y. July 3, 2014), the United States District Court for the Eastern District of New York addressed a policyholder’s claims for: (1) breach of the covenant of good faith and fair dealing, (2) unjust enrichment, (3) consequential damages, and (4) punitive damages. Notably, the policyholder alleged a breach of contract cause of action. The policyholder’s claims arose out of Nationwide’s denial of coverage for the policyholder’s first party …
Continue ReadingNYDFS Announces New Extension to Sandy Mediation Program
The New York Department of Financial Services (NYDFS) has extended the emergency regulation (15th Amendment to Regulation 64, 11 NYCRR 216) surrounding mediations relating to Hurricane Sandy. The current version was filed with the Secretary of State on February 14,2014 and will expire on or about May 15, 2014 under the 90 day rule.
Originally promulgated in the aftermath of Superstorm Sandy, the amendment applies to any claim for loss or damage, other than claims made under flood policies issued under the national flood …
Continue ReadingFEMA Sends Warning about Time to Sue Over Coverage Disputes
On October 1, 2013, FEMA announced that it was extending the proof of loss deadline by six months for flood insurance policy claims due to Superstorm Sandy. Normally, policyholders have sixty days from the date of loss in which to provide proof of loss. However, given the extensive damage caused by Sandy, FEMA extended the deadline. On November 9, 2012, FEMA extended the deadline for 1 year. FEMA extended it again October 1, 2013 creating a new deadline of April 28, 2014.
Given these extensions, …
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