Fisker, insurance firm drop suit over $33 million in Sandy-related losses

NEW YORK (Bloomberg) -- Fisker Automotive Inc. agreed to end a lawsuit against XL Insurance America Inc. over the loss of more than 300 luxury cars worth about $33 million that were destroyed in Superstorm Sandy, according to a court filing.

Fisker, the plug-in hybrid automaker seeking a buyer, sued XL Insurance in New York State Supreme Court in December, seeking reimbursement for losses from the destruction of 338 Fisker Karma extended-range sedans.

The vehicles were located at a facility in Port Newark, N.J., where they had been unloaded from ocean vessels and were waiting to be delivered to retail dealers in the United States, according to the complaint.

Fisker, based in Anaheim, Calif., said it notified XL Insurance, a unit of Dublin-based XL Group Plc, of the loss on Nov. 13. The insurer denied coverage on Dec. 20.

The two sides agreed to end the lawsuit, according to a stipulation of discontinuance filed today.

No reason was given.

Stephen Foresta, an attorney for Fisker, and Christopher Scanlon, a lawyer for XL Insurance, didn't immediately return messages seeking comment on the filing.