STORY FROM: Superstorm Sandy Insurance Litigation

Breach of Contract, Bad Faith Claims Time-Barred, N.J. Federal Judge Rules in Sandy Coverage Action

NEWARK, N.J. — A one-year statute of limitations in a homeowner’s policy bars breach of contract and bad faith claims asserted against an insurer in a Superstorm Sandy coverage action, a New Jersey federal judge has ruled, finding the plaintiffs are not entitled to equitable tolling because their claim was clearly denied more than one year before they filed suit.

However, in the July 6 order, Judge Esther Salas of the U.S. District Court for the District of New Jersey refused to dismiss the plaintiffs’ Consumer Fraud Act claim, ruling that it is subject to the three-year statute of limitations ...

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