N.J. Judge Stays Bad Faith Claim Ahead of Coverage Ruling in Superstorm Sandy Insurance Case

ATLANTIC CITY, N.J. — A state court judge in New Jersey has severed and stayed a bad faith claim filed as part of a couple’s lawsuit against their insurer for coverage of Superstorm Sandy losses.

Atlantic County Superior Court Judge Allen J. Littlefield said in a May 8 decision that putting the bad faith claim on hold will not affect the plaintiffs’ ability to pursue additional breach of contract claims against the insurer, especially in light of the fact that the allegations would be rendered moot by a coverage decision favoring the insurer.

Plaintiffs Nimesh and Jignasha Patel sued New …