Judge Rules That Reformation of SFIP Was Mandated By Federal Law

Judge Wolfson of the United States District Court for the District of New Jersey ruled that a breach of contract claim stemming from the denial of Plaintiff’s Hurricane Sandy-related insurance claim should be dismissed with prejudice.  Originally, Plaintiff filed suit after its carrier reformed four Standard Flood Insurance Policies (SFIPs) issued by Defendant as a part of the National Flood Insurance Program (NFIP).  The carrier moved for summary judgment and the Court granted the motion with respect to two of the four policies.  In dismissing the suit, Judge Wolfson reasoned that Plaintiff’s breach of contract claim was improper because federal law required Defendant to reform the SFIPs that were previously issued to Plaintiff.  The case is The Residences at Bay Point Condominium Association Inc. v. The Standard Fire Ins. Co.