Bad Faith Claim Severed from Breach of Contract Claim in N.J. Federal Sandy Coverage Action

NEWARK, N.J. — A New Jersey federal judge has severed a policyholder’s bad faith claim from its breach of contract claim in a Superstorm Sandy coverage case, ruling that the two claims are “significantly different from one another” and require the testimony of different witnesses and documentary proof.

In a Nov. 2 order, Judge Susan D. Wigenton of the U.S. District Court for the District of New Jersey further ruled that severing the claims would not prejudice the plaintiff, but forcing the insurer to litigate both claims at the same time would cause it “a significant expenditure of time and …