Bad Faith Claim Adequately Pled in Superstorm Sandy Coverage Case, N.J. Federal Judge Rules

NEWARK, N.J. — A New Jersey federal judge has allowed a bad faith claim to proceed against an insurer in a Superstorm Sandy coverage dispute, ruling that the claim is adequately pled and cannot be dismissed at this early stage in the case.

However, in a May 29 order, Judge Susan D. Wigenton dismissed a claim accusing the insurer of violating Pennsylvania’s bad faith statute, ruling that New Jersey law applies to the case and, as such, the statute is not applicable.

Bridgewater Wholesalers Inc, a commercial supplier of specialty millwork, filed a claim with Pennsylvania Lumbermens Mutual Insurance Co. …