Judge Allows N.J. Consumer Fraud Act Claim to Proceed Against Insurer in Sandy Coverage Case

NEWARK, N.J. — A federal judge has denied an insurer’s motion to dismiss a couple’s New Jersey Consumer Fraud Act Claim in a Superstorm Sandy coverage case, predicting that the state high court would rule that the Act encompasses the sale of insurance policies.

On July 8, Senior Judge William H. Walls of the U.S. District Court for the District of New Jersey found the NJCFA claim should proceed because plaintiffs do not merely allege breach of contract; rather, they allege the insurer acted deceptively and fraudulently when investigating their property damage.

Robert and Jaime Ryan’s New Jersey home was …