Trump Soho files suit over Sandy storm claim

TRD New York /
Jun.June 07, 2013 02:30 PM

The Trump Soho condominium-hotel has filed suit against its insurer, Affiliated FM, for allegedly rejecting its claim for Hurricane Sandy-related issues, and also accused ConEdison of gross negligence, Crain’s reported.

The suit could be the first to test the power utility’s claim that a flood at one of its substations, rather than an explosion, caused the blackout south of Midtown, allowing insurers to dodge liability for Sandy-related claims.

Trump Soho seeks a minimum of $2.3 million in damages.

Bayrock/Sapir Organization LLC, which developed the tower in partnership with the Trump Organization, filed a business interruption claim to Affiliated. The insurer rejected the claim in January on the grounds that the hotel’s insurance did not cover interruptions due to flooding at a ConEdison facility, the lawsuit stated.

Trump Soho, however, claimed that the reason for the blackout was the highly publicized explosion at a ConEdison substation near the East River, which it said would be covered under its insurance policy.

“We didn’t expect to get denied for 100 percent of our claim,” Bayrock/Sapir General Counsel Julius Schwarz told Crain’s. “We had flood insurance.”

“The outages to much of Lower Manhattan during Sandy was due to unprecedented flooding in our facilities and other areas,” a ConEdison spokesperson told Crain’s, adding that they had not yet been served with the suit.

Affiliated did not immediately return Crain’s request for comment. [Crain’s]Zachary Kussin


Related Articles

arrow_forward_ios
Alex Sapir and Rotem Rosen (Getty, iStock)

Sapir Org slams Rotem Rosen with $100M lawsuit

Sapir Org slams Rotem Rosen with $100M lawsuit
Fairway at 480-500 Van Brunt Street in Red Hook and the O’Connell Organization's Greg O’Connell (Credit: Google Maps)

Fairway landlord: Private-equity owners ruined Red Hook store

Fairway landlord: Private-equity owners ruined Red Hook store
Mayor Bill de Blasio and subway damage caused by Hurricane Sandy (Credit: Getty Images)

Program to rebuild Sandy-damaged homes needs extra $92M

Program to rebuild Sandy-damaged homes needs extra $92M
Army Corps of Engineers Commander Lt. Gen. Todd Semonite and flooding caused by Hurricane Sandy in 2012 (inset) (Credit: Getty Images)

A $119B seawall still might not protect Manhattan, critics say

A $119B seawall still might not protect Manhattan, critics say
Plans for NYC’s storm-surge barrier raise environmental concerns

Plans for NYC’s storm-surge barrier raise environmental concerns

Plans for NYC’s storm-surge barrier raise environmental concerns
Former Trump Soho hotel hit with tax lien from city

Former Trump Soho hotel hit with tax lien from city

Former Trump Soho hotel hit with tax lien from city
After dropping the Trump Soho name, business is booming

After dropping the Trump Soho name, business is booming

After dropping the Trump Soho name, business is booming
CIM mulls sale of former Trump Soho hotel

CIM mulls sale of former Trump Soho hotel

CIM mulls sale of former Trump Soho hotel
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...