N.Y. Federal Judge Orders New Trial on Negligence Claims Against Broker in Sandy Coverage Action

NEW YORK — A New York federal judge has granted an insurance broker’s request for a new trial in a $30 million Sandy coverage action, finding that the court erroneously instructed the jury on “clearly manifested intent.”

On Jan. 27, Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York further held that this erroneous jury instruction was not harmless and may have altered the verdict.

Cammeby's Management Co. sustained more than $30 million in losses as a result of Superstorm Sandy in October 2012. However, its insurer, Affiliated FM Insurance Co., paid only …