Fisker Automotive has had a rough year starting with the Fisker Karmas catching fire to the financial problems. The recent case arises from the loss they suffered at the New Jersey port during the Hurricane Sandy where they lost 338 Karma plug-in hybrids worth about $33 million. Normally, such incidents are covered by the insurance companies but with Fisker’s case, XL Group Plc has denied them this insurance coverage.

In that regard, Fisker has gone to court and sued XL Group Plc claiming that under their insurance company, XL Insurance America Inc had agreed to pay $100 million for storms such as Sandy, subject to a deductible and other provisions, but the insurance company denied this on December 20. The dispute is centered on whether the cars were in “transit”, and which sublimits may apply, if any, according to David Klein, a partner at Orrick Herrington and Sutcliffe which represents Fisker.

The Anaheim, California-based Fisker Automotive is now seeking a court order to ensure its policy covers the vehicle loss, as well as damages for breach of contract and other costs.

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