Insurer Awarded Summary Judgment on Breach of Contract, Bad Faith Claims in Superstorm Sandy Case

CAMDEN, N.J. — A New Jersey federal judge has awarded an insurer summary judgment on claims that it breached a homeowners’ policy by failing to pay Superstorm Sandy-related damage and mold claims, ruling that the insurer fulfilled its obligations under the policy.

In a July 12 order, Judge Joseph H. Rodriguez of the U.S. District Court for the District of New Jersey also held that the policyholders’ bad faith claim fails for lack of evidence.

Three weeks after a June 2012 “derecho” windstorm hit southern New Jersey, Warren and MaryAnn Andrews discovered a water leak in their Linwood, N.J., home. …