Fisker Automotive Inc. agreed to end a lawsuit against XL Insurance America Inc. over the loss of more than 300 luxury cars worth about $33 million that were destroyed in Superstorm Sandy, according to a court filing.
Fisker, the Anaheim, California-based plug-in hybrid carmaker seeking a buyer, sued XL Insurance in New York State Supreme Court in December, seeking reimbursement for losses from the destruction of 338 Fisker Karma extended-range sedans.
The vehicles were located at a facility in Port Newark, New Jersey, where they had been unloaded from ocean vessels and were waiting to be delivered to retail dealers in the U.S., according to the complaint. Fisker said it notified XL Insurance, a unit of Dublin-based XL Group Plc (XL), of the loss on Nov. 13 and the insurer denied coverage on Dec. 20.
The two sides agreed to end the lawsuit, according to a stipulation of discontinuance filed today. No reason was given.
"Fisker Automotive and XL Insurance America Inc. can confirm that they were able to successfully reach an out-of- court agreement that resolves their coverage dispute with respect to the loss of vehicles at Port Newark during Hurricane Sandy," Roger Ormisher, a spokesman for Fisker, said in an e-mailed statement. "The terms of the settlement are confidential."
Fisker and XL expect to continue their business relationship, Ormisher said.
Christopher Scanlon, a lawyer for XL Insurance, didn't immediately return a voice-mail message seeking comment on the filing.