STORY FROM: Superstorm Sandy Insurance Litigation

N.C. Federal Judge Refuses to Stay Execution of Judgment Against Insurer Pending Appeal

ELIZABETH CITY, N.C. — A North Carolina federal judge has denied Allstate Insurance Co.’s request to stay enforcement of a judgment in a hurricane coverage action pending disposition of the insurer’s appeal, ruling that a stay would prejudice the plaintiffs by forcing them to wait longer for payment of their rightful claim.

In a July 7 order, Judge Terrence W. Boyle of the U.S. District Court for the Eastern District of North Carolina further held that the public interest lies against granting a stay because Allstate’s actions “constituted a flagrant bad faith denial of a rightful claim.”

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