Deductible for Fuel Oil Terminal Subsumes Sandy Coverage Claim, N.Y. Appeals Court Rules

NEW YORK — A New York appellate court has overturned an award of summary judgment to an insured in a Superstorm Sandy coverage action, ruling that the policy’s applicable deductible to the loss was $2,494,020, and that the insured's claim did not meet the deductible.

In a March 9 ruling, the New York Appellate Division, 2nd Department, disagreed with the insured’s argument that its coverage is rendered illusory, noting that if Superstorm Sandy had instead caused $5 million of damage, the insured would have been paid the entire $2.5 million coverage sublimit.

Castle Oil Corp. owns and conducts operations …