N.J. Federal Judge Compels Arbitration of Superstorm Sandy Coverage Action

TRENTON, N.J. — A New Jersey federal judge has compelled arbitration of a Superstorm Sandy coverage action, finding that the policy’s arbitration clause clearly encompasses the parties’ dispute.

In an Aug. 18 order, Judge Susan Wigenton of the U.S. District Court for the District of New Jersey found because all of the claims arise out of the insurer’s alleged failure to adjust and or/pay the plaintiffs’ claims, the action falls within the scope of the arbitration clause.

Hudson Specialty Insurance Co. issued a policy to US Land Resources, a developer with an insurable interest in more than 20 properties, including …