Insurer’s Application of Flood Deductible to Superstorm Sandy Claim Isn’t Bad Faith, Judge Rules

NEW YORK — A federal judge in New York has dismissed claims for bad faith and violation of General Business Law asserted against an insurer for allegedly delaying payment for damage to a residential construction site that occurred during Superstorm Sandy.

In an opinion released April 22, Judge Nicholas G. Garaufis of the U.S. District Court for the Eastern District of New York determined that the claims are redundant of breach of contract allegations asserted by the plaintiffs, who accused Darwin National Assurance Co. of applying a flood deductible to the claim when the loss resulted not from flood, but …