STORY FROM: Superstorm Sandy Insurance Litigation

Insurer’s Subrogation Claim Against City Time-Barred, N.Y. Federal Judge Rules

NEW YORK — An insurer’s claims for contribution and indemnity filed against the City of New York in a Superstorm Sandy property damage dispute constitutes a subrogation action and must be dismissed as time-barred, a federal judge has ruled.

On May 24, Judge Margo K. Brodie of the U.S. District Court for the Eastern District of New York adopted a magistrate judge’s findings that the insurer’s claim is for subrogation because it is effectively seeking to “stand in the shoes” of the plaintiff. The judge concluded that the subrogation claim is time-barred because it accrued and expired when the policyholders’ ...

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