Bad Faith Claims Merged, Put on Hold Pending Decision on Coverage of Superstorm Sandy Damage

TOMS RIVER, N.J. — Another state court judge in New Jersey has set aside bad faith allegations from a Superstorm Sandy insurance dispute, determining that resolution of the claim depends largely on whether the plaintiff succeeds in the dispute over coverage of storm-related damage.

In a May 12 statement of findings and conclusions, Ocean County Superior Court Judge Robert A. Fall cited several prior decisions from New Jersey courts that severed and stayed bad faith claims at the insurer’s request while the parties litigated the core breach of contract claim.

The bad faith allegations were included in a lawsuit …