N.J. Judge Limits Damages for Breach of Contract in Superstorm Sandy Flood Insurance Case

NEWARK, N.J. — A federal judge in New Jersey has granted an insurer’s motion to dismiss the majority of extra-contractual claims asserted in a lawsuit over coverage of flood damage caused by Superstorm Sandy.

U.S. District Court Judge Kevin McNulty said Jan. 23 that much of the relief sought by the plaintiffs, including incidental and consequential damages resulting from the insurer’s alleged breach of contract, are not legally recoverable in flood insurance cases. Judge McNulty also struck a portion of the complaint in which the plaintiffs demanded that a federal jury hear their case.

The decision does, however, leave intact …