Saturday, May 16, 2015

FAPS, INC, A NJ CAR IMPORTER, FILES SUIT AGAINST TRAVELERS OVER SANDY INSURANCE CLAIM





MAY 5, 2015

NEWARK, NEW JERSEY

A major automobile importer that suffered severe damage when Superstorm Sandy swept over New Jersey ports in October 2012 has accused its insurance company of refusing to pay "large portions" of its claims.

A lawsuit filed by FAPS Inc., which had 4,000 cars destroyed when water surged over its facility in Port Newark, claims that The Travelers Indemnity Co. of Hartford, Conn., has "improperly denied" claims related to the storm.

Company owner August LoBue said the claim is not about the loss of the cars, because the shipping contracts signed by the manufacturers make it clear that they are responsible for damage due to "acts of God," which is known as "force majeure." He said the suit instead relates to property damage sustained by the company's terminal, including wind damage.

"They are challenging some of the coverage, some of the wind damage," he said.

The suit, which says FAPS "sustained catastrophic losses as a result of flood, winds and rain," does not specify the dollar value of the damage or how much the insurance company has agreed to pay.

The suit accuses Travelers of breach of contract and breach of implied covenant of good faith and fair dealing.

Matt Bordonaro, a spokesman for Travelers, said the company could not respond to the case while it is in litigation.