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    Wakefern Sues Insurer Over Losses from Superstorm Sandy

    Cooperative wholesaler claims breach of contract and bad faith

    Wakefern Food Corp. has sued its insurance company over losses from Superstorm Sandy that haven't been covered, according to a report in the New Jersey Star-Ledger.

    Wakefern filed its complaint earlier this month in Superior Court of Middlesex County. The Keasbey, N.J.-based company is accusing Lexington Insurance Co., a unit of the American International Group, of breach of contract and bad faith because it has yet to pay out more than a small portion of its losses from the storm.

    Wakefern also alleges the insurer did not respond promptly and meaningfully to its claims, and didn’t investigate them with due diligence.
     
    The complaint says that more than 250 ShopRite and PriceRite stores in New Jersey, Pennsylvania, New York and Connecticut suffered property damage, service interruption and food spoilage.
     
    These losses fell within the coverage of the policies that Lexington issued to Wakefern and the store operators, according to Wakefern. However, the insurer has refused some of the claims, offering "untenable" characterizations of the coverages. Wakefern is seeking damages, interest and attorney’s fees.
     
    It was one year ago today that the fierce hybrid storm hit coastal New Jersey and surrounding areas, leaving unprecendented damage. Other companies have filed similar lawsuits against their insurers over Sandy claims.
     

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