Judge Remands Sandy Coverage Case, Says Claims Against Nondiverse Defendant Not Severable

NEW YORK — A New York federal judge has remanded a Superstorm Sandy coverage case, ruling that lack of complete diversity does not exist because the plaintiffs’ claims against the nondiverse electric company cannot be severed from the claims against the insurers.

In a July 24 order, Judge Edgardo Ramos of the U.S. District Court for the Southern District of New York found the claims are not severable because they all arise from the loss of utility service during Superstorm Sandy and, as a result, had a substantial possibility of duplicative discovery.

On Oct. 29, 2012, Superstorm Sandy hit …