Skip navigation
Newswire

Fisker, XL end lawsuit over hybrid cars wrecked by Sandy

* Fisker lost 338 Karma hybrids from Sandy-related flood

* XL said to have denied coverage in policy dispute

* Companies reach "amicable resolution"-XL lawyer

Feb 21 (Reuters) - Fisker Automotive Inc has resolved its lawsuit accusing XL Group Plc of denying it insurance coverage over flooding from Superstorm Sandy that destroyed 338 of its Karma plug-in hybrids at a Port Newark, New Jersey, shipping facility.

Both companies agreed to end the dispute over the loss of vehicles worth about $33 million, according to a joint filing on Thursday with the New York State Supreme Court in Manhattan. No reason was given in the filing.

Christopher Scanlon, a lawyer for XL, in a telephone interview said the companies had reached an "amicable resolution."

Stephen Foresta, a lawyer for Fisker, did not immediately respond to a request for comment.

Fisker said the vehicles had been submerged in more than 5 feet of seawater on Oct. 29 while they were awaiting shipment to dealers across the country.

The Anaheim, California-based carmaker said it submitted a timely claim to XL Insurance America Inc, under a policy offering up to $100 million of coverage subject to a deductible and other provisions, only to have it denied on Dec. 20.

In December, a Fisker lawyer said the dispute centered on whether the cars were in "transit," and which sublimits might apply.

More than 10,000 vehicles were estimated to have been damaged at the Port Newark facility because of Sandy, including several thousand from Toyota Motor Corp.

Fisker has not made new vehicles since July, in part because of battery supplier A123 Systems Inc's bankruptcy, and has been seeking new investors after a tough 2012 marked by the delayed launch of the Karma.

XL is based in Dublin, Ireland, and has a U.S. office in Stamford, Connecticut.

The case is Fisker Automotive Inc v. XL Insurance America Inc, New York State Supreme Court, New York County, No. 654571/2012.