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New York Restaurant Files Sandy-Related Suit Similar to Trump SoHo Hotel's

Source: BestWire

Posted on 01 Jul 2013 by Neilson

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power outageA New York restaurant has filed a Hurricane Sandy-related lawsuit against its insurer and Consolidated Edison in a case similar to one filed recently by the Trump SoHo New York hotel.

Koi SoHo is seeking at least $176,500 is business interruption and food spoilage claims from Nova Casualty Co., because of a massive power outage in that part of the city, the suit says. The restaurant is located inside the hotel.

Nova, in denying Koi's claim, said the cause of the power loss was due to flooding and therefore not covered under the restaurant commercial general liability and property policy, records say. The suit contends the outage was actually caused by an explosion at a nearby ConEd power substation. The suit cites a news report quoting a ConEd official that the explosion was likely caused by flying debris and flooding hindered power restoration.

The hotel's suit was filed June 6 and seeks $3.2 million from its insurer, Affiliated FM Insurance Co. and ConEd.

Sandy struck on the evening of Oct. 29, making landfall near Atlantic City, N.J., as a post-tropical cyclone. The storm had a mix of ingredients, including that it hit during high tide, that wreaked havoc on the New Jersey shoreline and in the greater New York City region. A record storm surge of nearly 14 feet produced flooding in low-lying areas near the East River and some New Jersey shore towns.

Nova Casualty Co., which is a subsidiary of The Hanover Insurance Group, currently has a Best's Financial Strength Rating of A (Excellent). Attempts to reach Hanover for comment were not immediately successful.