Fisker Sues it’s Insurance Company over Burnt Karmas in Sandy

  • Posted On: 30th December 2012
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Fisker has filed a lawsuit against XL Group after refusing to pay for the burnt 338 Karmas that went on fire at Port Newark, New Jersey during Sandy hurricane after being submerged in more than 5 feet seawater October 29, the case was filed on friday in the New York State Supreme Court in Manhattan

The Anaheim, California-based startup said it submitted a timely claim to XL Insurance America Inc, whose policy entitled it to a maximum $100 million of coverage for named storms such as Sandy, subject to a deductible and other provisions, only to have it denied on December 20.

David Klein, a partner at Orrick Herrington & Sutcliffe which represents Fisker, said in a phone interview that the dispute centered on whether the cars were in “transit,” and which sublimits may apply, if any.

Fisker is seeking a court order that its policy covers the vehicle loss, as well as damages for breach of contract and other remedies.

An XL spokeswoman did not immediately respond to requests for comment. The company is based in Dublin, Ireland, but has a U.S. office in Stamford, Connecticut.

More than 10,000 vehicles were estimated to have been lost at the New Jersey facility, including several thousand from Toyota Motor Corp.






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