STORY FROM: Superstorm Sandy Insurance Litigation

Claimant Barred From Bringing Sales Tax Action Against FEMA, N.Y. Federal Judge Rules

NEW YORK — A Superstorm Sandy claimant who agreed to settle her lawsuit against the Federal Emergency Management Agency is barred from filing a class action lawsuit accusing the agency of failing to properly calculate sales tax due to insured homeowners, a New York federal judge has ruled.

On July 22, Judge Margo Brodie of the U.S. District Court for the Eastern District of New York adopted a magistrate judge’s report and recommendation holding that the parties’ negotiated settlement agreement and stipulation of dismissal bars any future actions against FEMA.

Joan Murphy sued the Federal Emergency Management Agency, seeking additional ...

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