Wednesday, January 2, 2013

Fisker Automotive Sues Insurer Over Flooded Cars

Anaheim-based electric auto firm Fisker Automotive has filed a lawsuit against its insurance company, over the 338 Karma cars which were destroyed in Hurricane Sandy. The lawsuit, against XL Insurance America, claims breach of contract for denying coverage for the damaged vehicles, which were parked in Port Newark, New Jersey. The autos were among the thousands damaged in Sandy from multiple manufacturers. Apparently, Fisker estimated a loss of $33M from the loss of those cars, just one of the many trials and tribulations faced by the auto maker in 2012. Fisker said in December that it was seeking a "strategic partner" and financing to continue its efforts, and is even considering bankruptcy protection. The lawsuit was first reported by Reuters.