Posted Jun 17, 2013 09:14 pm CDT
Hurricane Sandy was over months ago, but it’s still a daily reality for a number of New York law firms struggling with the aftermath.
Among that group are law firms which were located at 110 Wall Street, where leases were cancelled due to flood damage. Finding new office space is difficult and expensive, and even ordinary tasks like getting mail delivered are suddenly complex.
It’s “a big drain, emotionally a big drain, professionally a big drain and economically a big drain,” said partner Thomas Campbell of Smith Campbell, which finally found space at 100 Wall St. at a cost, he estimates, of $60,000 to $90,000. That doesn’t include the cost of salaries the firm continued to pay to its workers, the New York Law Journal (sub. req.) reports.
Meanwhile, the firm’s business interruption insurer is still negotiating the claim and has suggested mediation.
Similarly, counsel Andrew Fallek of Joseph Fallek says his firm has been denied because the insurance carrier said its damage was caused by flooding, which isn’t covered by the policy.
With offices on the 19th floor of 110 Wall Street, “you probably don’t think you need flood insurance” said Fallek, who is president of the Brooklyn Bar Association. His firm has found temporary space downtown but is still seeking a permanent new home.
ABAJournal.com: “Closed by lack of power after Hurricane Sandy, law firm battles insurer over flooding exclusion”
New York Times: “Hotel Blames an Explosion, Not Flooding, for Its Losses”