N.J. Judge Cites ‘Strong Suspicion of Bad Faith’ in Dismissing Superstorm Sandy Coverage Case

NEWARK, N.J. — A New Jersey judge has thrown out an insurance coverage suit brought by commercial property owners who claimed more than $500,000 in wind-related Superstorm Sandy losses but refused repeated requests to have the damage inspected.

On Nov. 11, Senior U.S. Dist. Judge William H. Walls of the U.S. District Court for the District of New Jersey granted International Marine Underwriters’ motion to dismiss the case and ordered additional briefing on a request for attorneys’ fees, which the insurer said was warranted based on allegations the plaintiffs’ conduct “bespeaks fraudulent claims and sanctionable conduct.”

Toms River, N.J.-based …