Andrew Rubin, Esq.

New Jersey breach of contract claims part of Sandy legacy

When Superstorm Sandy hit the coastal towns of New Jersey in 2012, the short-term damage was apparent and widespread. However, it would seem to have a more long-lasting impact than might be expected, judging by breach of contract claims reports. One of those breach of contract claims is between a Carlstadt-based printing company and its insurer.

The printing company, which has thus far received $1.25 million in insurance monies to cover damage and debris cleanup, believes that its insurance company actually owes more than $35 million more to cover additional problems that were related to electrical surges, not flooding. The company's representatives have said that their work with a third party indicated that power surges that happened prior to water damage caused issues with the performance of some of their printing machines. Now, those machines are still reportedly not operating.

Consequently, the printing company wants the insurance carrier to reimburse them for the cost of the machinery. The insurance company has refused to pay because they believe the damage was caused by water, not electricity. According to their documents, they have a $1 million cap on payouts related to flooding. Therefore, they believe they have paid the maximum that they are expected to pay; the printing company is alleging otherwise, citing their findings as well as language in the contractual agreement they signed.

Breach of contract claims such as this pending one are still going on throughout New Jersey courts. For companies and individuals who feel that their insurance did not live up to their end of the bargain, it is important to solve the situation sooner rather than later. While settlements are always preferable, in some cases, the courts may need to intervene to make sure plaintiffs who are owed monies get their fair reimbursement amounts.

Source: northjersey.com, "Carlstadt printer Pictorial Offset Corp. seeks $37 million in Sandy damage", Hugh R. Morley, Aug. 19, 2014

Source: northjersey.com, "Carlstadt printer Pictorial Offset Corp. seeks $37 million in Sandy damage", Hugh R. Morley, Aug. 19, 2014

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