Sandy in the Courts


Hurricane Sandy (also known as Superstorm Sandy) struck the northeast coast of the United States in October 2012, causing an estimated $65 billion* in property damage, including wind damage, severe flooding and power outages. Estimates of insured losses have approached $30 billion. Since late 2013, the courts have been handling numerous insurance cases arising out of the storm. On the following pages, we first review how the Eastern District federal court in New York is coordinating the many cases filed in connection with homeowners claims. Then, we summarize the written opinions that have been issued to date concerning coverage issues raised by Sandy under commercial policies. We can expect many more substantive coverage decisions as these cases make their way through the courts.

Coordinated Homeowners Cases in the Eastern District of New York -

After Hurricane Sandy, more than 800 actions were filed against homeowners insurers in the United States District Court for the Eastern District of New York. The actions were consolidated into a single case, In re Hurricane Sandy Cases, Case No. 1:14-mc 00041. To facilitate prompt and efficient resolution of the high volume of cases, the court issued Case Management Order No. 1 (the CMO), which ordered the parties to provide an analysis of common issues and defenses.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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