Howard Hughes Prevails in Superstorm Sandy Insurance Dispute

In an insurance coverage victory for Skadden client The Howard Hughes Corporation (HHC), the New York Supreme Court, Appellate Division, First Department unanimously declared that HHC's excess property insurer XL Insurance America Inc. (XL) is obligated to pay its 50 percent proportionate share of the loss sustained by HHC at its South Street Seaport properties as a result of Superstorm Sandy that falls within XL's coverage layer, up to a $50 million sublimit. In so holding, the First Department reversed the lower court's decision that granted summary judgment in favor of XL and declared that XL owed no coverage to HHC for its Superstorm Sandy loss.