STORY FROM: Superstorm Sandy Insurance Litigation

Spoliation Doctrine Does Not Save Plaintiffs’ Claim for Excluded Floodwater Damages, N.J. Federal Judge Rules

NEWARK, N.J. — A New Jersey federal judge has found in favor of a homeowners’ insurer in a Superstorm Sandy water damage case, ruling that the damage caused to the policyholders’ shore home was not solely caused by a backup of sewer and floodwaters and, as such, was partially excluded from coverage.

On Nov. 18, Judge Freda Wolfson of the U.S. District Court for the District of New Jersey found the doctrine of spoliation does not save their claim because the insurer did not force them to clean up the property before its initial inspection by the claims adjuster.

Frank ...

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