N.J. Federal Judge Awards Insurer Summary Judgment in Superstorm Sandy Coverage Action

TRENTON, N.J. — A New Jersey federal judge has awarded an insurer summary judgment in a Superstorm Sandy coverage action, ruling that the policyholder failed to back its claim for damages with evidence that it was caused by sewer and drain backup.

In a Nov. 15 order, Senior Judge William H. Walls of the U.S. District Court for the District of New Jersey concluded that the policyholder failed to demonstrate that the back-up flow directly, and solely, caused the damages.

Aspen American Insurance Co. issued a policy to Carevel LLC, insuring its Jersey City, N.J., property. Carevel claims that …