Superstorm Sandy Breach of Contract Claim Survives Mortgage Bank’s Challenge

NEW YORK — A federal judge in New York has refused to dismiss part of an action filed against a mortgage bank that allegedly refused to sign over insurance proceeds from a Superstorm Sandy flood claim.

In a Sept. 30 order, Judge Sandra L. Townes of the U.S. District Court for the Eastern District of New York ruled that a breach of contract claim asserted by the plaintiff was sufficiently pled, despite the bank’s contention that the mortgagor failed to provide proper notice of the loss as required under the mortgage agreement.

Judge Townes, however, dismissed causes of action for …