STORY FROM: Superstorm Sandy Insurance Litigation

Plaintiff May Not Assert Fraud Claims Against Flood Insurer in Sandy Coverage Case, N.J. Federal Judge Rules

TRENTON, N.J. — A policyholder may not amend his Superstorm Sandy coverage complaint against his flood insurer to assert claims of fraud and misrepresentation because he failed to sufficiently allege that the insurer’s coverage quote misrepresented the value of his home, a New Jersey federal judge has ruled.

In an Aug. 9 order, Chief Judge Jerome Simandle of the U.S. District Court for the District of New Jersey also dismissed the policyholder’s extra-contractual and tort claims for bad faith, pre- and post-judgment interest, punitive damages, attorney’s fees, and other consequential damages, finding they are barred under the terms of the ...

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