Fisker filed suit against the insurer in the New York Supreme Court on Friday, saying that the ruined Karmas, worth about $33 million.
Fisker Automotive just can’t catch a break these days. With production at a standstill thanks to the bankruptcy of sole battery supplier A123, Superstorm Sandy piled on with a flood that destroyed 338 new Karma sedans that were awaiting shipment at Port Newark, New Jersey. Now Fisker’s insurance company, the Irish-owned XL Insurance America, says it won’t pay.
Fisker filed suit against the insurer in the New York Supreme Court on Friday, saying that the ruined Karmas, worth about $33 million, should be covered by its policy, which covers the company for up to $100 million in losses from named storms such as Sandy. A partner at Fisker’s law firm told Reuters that the dispute centered on whether the cars were “in transit” or not.
This promises to be a long and highly-publicized courtroom drama, and it may be the first of many. An estimated 10,000 vehicles, belonging to various automakers, went to a watery grave that day in New Jersey.
Image: Fisker
Source: Reuters
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