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.