Superstorm Sandy Plaintiffs Can Add Consumer Fraud Claim Against Insurer, N.J. Judge Rules

NEWARK, N.J. — A New Jersey couple who sued their homeowners’ and flood insurers for full coverage of their Superstorm Sandy-damaged home cannot amend their lawsuit to include a claim for declaratory judgment, but can add a count for violation of the state’s Consumer Fraud Act, a federal magistrate judge has ruled.

In a Nov. 5 opinion, Judge James B. Clark III of the U.S. District Court for the District of New Jersey held that the proposed declaratory judgment cause of action is redundant of the breach of contract claim asserted against the flood insurer. A claim for violation of …