In the wake of Superstorm Sandy hitting the east coast, Fisker Automotive and insurer XL Insurance wound up in a legal battle over 338 Karma models destroyed in the storm. The cars were sitting in Port Newark, New Jersey when the enormous storm struck, washing away $33 million worth of viable automobiles. Fisker sued XL Insurance in New York State Supreme Court after the company denied coverage for the loss.

Both sides reportedly reached an agreement to drop the legal action on Thursday without publicly stating a reason for the truce. In lieu of an actual reason, here's some conjecture: the cars may be worth more to Fisker as an uncompensated loss, as pending legal battles make the beleaguered niche automaker much less attractive to potential investors or suitors.


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  • 35 Comments
      Letstakeawalk
      • 1 Year Ago
      "...the cars may be worth more to Fisker as an uncompensated loss." Interesting, makes sense.
      Steve
      • 1 Year Ago
      So they knew the storm was coming for at least a week, but left $33 million worth of them just sitting where they would be ruined, then wanted someone else to pay for them? They should pay the insurance company for their incompetence and apologize for being stupid.
        wlh1923
        • 1 Year Ago
        @Steve
        Another idiot. Nobody forecast the flooding that occurred
          • 1 Year Ago
          @wlh1923
          [blocked]
      carguy1701
      • 1 Year Ago
      Nothing of value, etc.
      Greg
      • 1 Year Ago
      Please don't use the "MM" symbol for "million." It is just plain silly. As best as anyone can tell, the M used in it comes from from Roman numerals, meaning 1000, and the two Ms mean 1000 x 1000. But in Roman numerals, MM actually equals 2000, not 1 million. To make matters worse, MM also means millimeters (when you can't use lowercase letters, like on my company's engineering prints). Using one "M" adequately gets the meaning across.
      wrestleprocbt
      • 1 Year Ago
      I'm not really up on the Fisker company just that our tax money used to help stabalize this company may never get returned and that a Chinese Comp may buy a majority stake? Anyway, if this is a port in NJ, then is it for export of these cars? Or are these cars that were there imported from a factory outside the US?
      • 1 Year Ago
      [blocked]
        Letstakeawalk
        • 1 Year Ago
        "Depending on how damaged they are they could have good batteries in them. " No. Nobody's foolish enough to take the risk of using those batteries. "They really do a piss poor job of advertising the sale of these damaged vehicles." That's because they're not going to be sold. They're going to be crushed, and the batteries will be recycled.
        lynnzie2003
        • 1 Year Ago
        The cars are in Port Newark, NJ. Cars damaged at the port are never sold or parted out, they are destroyed. Some of the Fiskers are still waiting to be destroyed.
      Ron Swenson
      • 1 Year Ago
      I don't care how many celebrities (Bieber, DeCaprio) buy these things, these cars are ridculous. A hundred grand for a hgh-end Chevy Volt. This company is heading for bankruptcy which is a shame for the investors.
        djs8888
        • 1 Year Ago
        @Ron Swenson
        $200,000,000 of taxpayer dollars so far and thet still believe the DOE may contribute more. Another Obama Solyndra in the very near future.
          Dans AOL
          • 1 Year Ago
          @djs8888
          Just like in the late 70's early 80's this money your saying is a gift by the tax payers is a low intrest loan. Rember when Iaacoca went and got the low intrest(10% for 10 years when the average 30 year fixxed was 20%) loan for Chrysler , and oh yes Chrysler Corp paid tha loan in full along with the 10 years intrest with in 4 years of it's origination, but back then people just like you screamed that it was not a loan that Chrysler was getting a gift . But back then Chrysler had to sell some stuff off to secure that loan, namingly their Tank division, their turbine engine division , their space divison, yes Chrysler built the Saturn V platform that sent the US to the moon. But again this isn't like GM (Goverment Motors) these are low intrest loans for these startups like Tesla, and Fisker to build something diffrent. And yes I have seen a few Fiskers down here in Northern Alabama so go figure
          • 1 Year Ago
          @djs8888
          [blocked]
        Iselin007
        • 1 Year Ago
        @Ron Swenson
        They would of made a great ride attraction to replace the roller coaster that was destroyed at the shore.
      Scr
      • 1 Year Ago
      They probably jusy needed it off the books for the potential sale, so they took whatever they could get as a settlement. Also, the loss puts them in even worse financial shape, making the case for sale even more compelling rather than a bankruptcy.
      m_2012
      • 1 Year Ago
      $33? Why would you go to court over $33 worth of cars?? RIP Fisker
        m_2012
        • 1 Year Ago
        @m_2012
        What part of sarcasm don't you understand? That's $33 worth of cars and $32,999,967 in wasted tax money given to foreign companies. No sarcasm there.
        wlh1923
        • 1 Year Ago
        @m_2012
        What about thirty three million do you not comprehend? That is 33,000,000.00 - 33 with six zeroes behind it.
      maometto
      • 1 Year Ago
      Fisker, underwritten by the U.S. taxpayer. A Finnish company, R and D in Finland and now they are broke and the Chinese are buying them, Another Solyndra The Chinese will end up with Solyndra also.. There are about 20 or more of these companies that the U.S. taxpayer had paid for and not we are out of billions of dollars. If you think you have a good product, get a venture capitalist to underwrite your business model, not the taxpayers. Another of Odummer's follies. Nero fiddled while Rome burned. That is what is happening today.
      Nelson Escobar
      • 1 Year Ago
      Insurance companies, modern day robbery.
        benjammin172
        • 1 Year Ago
        @Nelson Escobar
        If you want coverage for floods, then buy flood insurance. Don\'t cry when you know something is excluded from your policy and you refuse to pay for it because the NE doesn\'t flood very frequently.
          Letstakeawalk
          • 1 Year Ago
          @benjammin172
          The question wasn't about flood damage, it was about any kind of damage, on property leased by Fisker. XL denied the claim saying that the property wasn't covered at all - that it was not an "Insured Premises" as defined by the contract, not that it wasn't covered for a specific hazard. Their argument was that Fisker didn't own the Port of Newark, and that Fisker hadn't reported any values of that property to XL. Fisker *was* insured for flood damage, BTW.
      Iselin007
      • 1 Year Ago
      Why where the cars stored in Newark NJ? Were the cars imported? Could the cars be used to form an artificial barrier reef, build up the Sand Dunes, or use as a wall to protect from storm surges ect?
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