Fisker sues insurance company over 338 cars, $33M, lost in Sandy

Ray Lane's Fisker Karma

Electric car startup Fisker Automotive has filed a lawsuit charging insurance company XL Insurance America with breach of contract for denying coverage of its claim after 338 of its Karma cars were destroyed due to flooding in Superstorm Sandy. The cars were valued by Fisker to be worth $33 million, and Reuters first reported the lawsuit (which I’ve embedded below).

The 338 cars were being held at Port Newark in New Jersey, and during the storm, the cars were “submerged in more than five feet of seawater, resulting in their complete destruction,” says Fisker in the suit. XL denied coverage of the claim on Dec. 20, 2012, and Fisker filed the lawsuit on Dec. 28, 2012.

All I can say is yikes, for the company, which has faced innumerable setbacks and is now looking for a well-financed partner to help it develop and manufacture its second Atlantic car. 2012 was truly an ugly year for Fisker — will 2013 turn things around for them?

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