Insurer Wins Summary Judgment in Superstorm Sandy Water Exclusion Dispute June 18, 2015
With the help of Goldberg Segalla’s Global Insurance Services Practice Group, a major insurer defeated a condominium association’s breach of contract claim against it following the insurer’s denial of coverage for property damage that occurred during Superstorm Sandy in 2012. Michael S. Saltzman led the team from the firm’s Philadelphia and Princeton offices that achieved this victory, highlighting the value Goldberg Segalla brings as national Superstorm Sandy counsel for several prominent insurers.
The U.S. District Court for the District of New Jersey agreed with our team’s argument that the insurer properly denied coverage for the damage because the association’s commercial property insurance policy excluded loss or damage caused by water and/or flood. The court rejected the condo association’s claim that the damage was caused by wind, concurring with our team that the evidence the plaintiff presented was inadequate, and it found the plaintiff did not meet its burden to show its claim was “within the basic terms of the policy” to support a breach of contract action.
Accordingly, the court granted our motion for summary judgment, saving our client the cost of coverage and the burden of a prolonged dispute.
The case was reported on by FC&S Legal: The Insurance Coverage Law Information Center:
- “Absence of Evidence that Wind, Not Water, Caused Superstorm Sandy Damage Dooms Condo Association’s Breach of Contract Claim Against Insurer,” FC&S Legal, June 23, 2015 (subscription required)