Upstart electric vehicle maker Fisker Automotive is suing its insurance provider, XL Group, for denying a claim to reimburse the company for the 338 Karma sedans destroyed by superstorm Sandy.
The California-based automaker filed its suit in New York State Supreme Court late last week seeking payment for the 338 vehicles that were damaged beyond repair by Sandy while awaiting shipment to dealers. All 338 vehicles were located in Port Newark.
According to Fisker, it submitted a timely claim to XL for about $33 million, which is well within the company's $100 million coverage limit. However, David Klein, a partner at Orrick Herrington & Sutcliffe which represents Fisker, told Reuters in a phone interview that XL is disputing that the damaged cars were in "transit,? which could trigger certain sublimits.
According to the suit, Fisker is suing for full coverage of the destroyed vehicles, as well as damages stemming from XL's alleged breach of contract.
XL has yet to comment on the law suit.
It is believed that superstorm Sandy destroyed about 15,000 new vehicles.