On August 29, 2018, the U.S. Court of Appeals for the Fifth Circuit dismissed an appeal for lack of appellate jurisdiction involving the issue of whether a vessel’s primary and excess insurers may limit their liabilities to the same extent available to the vessel. See SCF Waxler Marine, L.L.C. v. ARIS T M/V, No. 17-30805
Admiralty and Maritime
International Trade Update: Is NAFTA Being Revised or Replaced?
“A big day for trade!” was President Donald Trump’s enthusiastic announcement concerning the bilateral negotiations recently reached between the United States and Mexico on August 27, 2018, merely three months away from the North American Free Trade Agreement’s 25th birthday.
While ratified by the Legislatures of Canada, Mexico, and the United States in 1993,…
Insurance Policy’s “No Claims Bonus” Can Be a Recoverable Damage
By the Admiralty and Maritime Team
A “no claims bonus” is an attractive carrot that insurers can write into a policy to attract more customers. Indeed, the recovery of a “no claims bonus” can result in a substantial payoff for an insured. Given the maxim: “accidents happen”, the question arises, can the “no claims bonus”…
U.S. Fifth Circuit’s New Doiron Test Finds P&A Contract to be Maritime, but What if the Work Occurred on the OCS?
Contractual indemnities are important and valuable in the oil patch. When they are enforceable, they have the potential to end litigation completely or at least the financial burden for a particularly well-positioned indemnitee. But, with “anti-indemnity” statutes in play in several jurisdictions (including Louisiana), the enforceability of these indemnity provisions rely (barring exceptions) on the…
How Much is Too Much? The Louisiana Supreme Court Holds that a Punitive Damage Award Ratio of 184:1 is Excessive
By the Admiralty and Maritime Team
Punitive damages are designed to punish a tortfeasor. They are available as a remedy in general maritime actions where a tortfeasor’s intentional or wanton and reckless conduct amounted to a conscious disregard for the rights of others. The punitive damage standard requires a much higher degree of fault than…
Vessel Finance Update: Federal Law Controls Validity of a Preferred Ship Mortgage
Increasingly common in coastal Louisiana – and even more so during a depressed, offshore, oilfield-services market – is the strained relationship between a marine lender and a vessel owner secondary to the lender asserting creditor’s rights against the vessel through a pre-existing security instrument. In one such dispute, lender, South Lafourche Bank & Trust Co.…
“Zone of Danger” Rule Applies to Emotionally Injured Passengers Under General Maritime Law within U.S. 1st Circuit; U.S. 5th Circuit Still Undecided
On February 12, 2017, a fishing charter boat, the M/V SUPER STRIKE, carrying several paying customers collided with an offshore service boat, the M/V MISS IDA, during a fishing trip. Claims were asserted by the passengers against both vessels and operators in their respective limitation suits. Recently, dispositive motions were filed against the claims asserted…
Louisiana Policy Endorsement does not Contractually Expand Plaintiff’s Right to File Direct Action Against Insurers
The EDLA recently determined that the Insurance Service Office’s (ISO) “Louisiana Changes” endorsement does not expand the scope of Louisiana’s direct action statute. In Menard v. Gibson Applied Technology and Engineering, 2017 WL 6610466 (E.D. La. Dec. 27, 2017), the plaintiff was a senior field technician working offshore in the Gulf of Mexico and…
International Trade Update: Himalaya Clause Covenant not to Sue Affords Immunity to Carrier’s Contractors
In matters of international trade, a bill of lading often serves as the contract of carriage between a shipper and carrier for transportation of goods. A Himalaya clause is a provision contained in certain bills of lading protecting carrier’s servants, agents, and independent contractors from third-party claims by limiting shipper’s rights to bring suit against…
Spouse of Non-Seafarer Injured in Territorial Waters can Recover Non-Pecuniary Damages for Loss of Consortium and Society
by the Admiralty and Maritime Team
In 2016, District Judge Sarah Vance ruled that the heirs of a self-employed commercial fisherman who died while fishing in state territorial waters could recover non-pecuniary damages. In Re: Marquette Transp., 182 F.Supp. 3d 607 (E.D. La 2016) (citing Yamaha Motor Corp USA v. Calhoun 516 U.S. 1999…