Richards Hogg Lindley (RHL)’s Post

The U.S. Supreme Court decided one of the most important case in marine insurance contracts in recent years. In Great Lakes Insurance SE v. Raiders Retreat Realty Co. (a claim following a yacht grounding in South Florida) the insured contested under Pennsylvania law disregarding the fact that the policy included a choice-of-law provision that said New York law would govern any dispute. The Court held that choice of law provisions in maritime contracts are presumptively enforceable. It is a significant victory for the maritime insurance industry as it will inevitably function to reduce legal uncertainty regarding governing law and jurisdiction. #Shipping #Insurance #MarineInsurance #InsuranceLaw #Jurisdiction

The Supreme Court today effectively adopted in the admiralty-insurance-law context the rule of the "law merchant" or lex mercatoria by federalizing "salty" maritime insurance contracts. In a simple and complicating decision today, the Court holds that a choice-of-law provision in a marine-insurance policy should be enforced as a matter of federal marine-insurance-contract law, notwithstanding local state insurance law to the contrary. Extolling the need for uniformity, and already having found that choice-of-forum provisions are governed by federal law, the Court finds no reason for a different outcome for choice-of-law clauses. There is the tradition of the law merchant which is almost a branch of private international law that historically applied to maritime contracts and by extension maritime insurance contracts (and their enforcement in law courts led by Lord Mansfield, but that's another story). In any event, the law merchant/lex mercatoria ensured shippers have uniform law, without regard to the vicissitudes and prejudice of local law. Regarding federal admiralty law, the federal courts use the grant of jurisdiction in Article III as the source of admiralty common-law lawmaking power (which in turn preempts state laws). This law-making authority is in considerable tension with theories of sovereignty under Erie RR v. Tompkins, of course. Without citing Erie or relying on the judiciary act, here the court by common-law lawmaking preempts contrary state law. All this gets more complicated with mixed on-land and on-sea insurance contracts, where jurisdiction and governing law turns on the "saltiness" of the issue. A cite to the decision is in the comments. Perhaps the biggest takeaway as Justice Thomas emphasizes in his concurrence that the "Wilburn Boat" principle will be construed narrowly by this Supreme Court, and it largely will be confined to its relatively unique circumstances. #admiralty #marineinsurance

What are the recent developments in admiralty and maritime Law? Holli Packer discusses noteworthy admiralty and maritime decisions involving seamen, longshoremen, passengers, maritime liens, salvage, marine insurance, marine contracts, limitation of liability, jurisdiction, and other issues that arise in the practice of maritime law in the American Bar Association's Tort Trial & Insurance Practice Law Journal. Read: bit.ly/3YiGvav #maritimelaw #maritime #admiralty

Breaking news from the Supreme Court: Choice-of-law clauses in maritime insurance contracts are now solidly enforceable! This landmark decision (Great Lakes Insurance SE v. Raiders Retreat Realty Co., LLC) ensures uniformity and predictability in maritime law, crucial for us in loss control. It's a win for reducing legal uncertainties and potentially lowering marine insurance costs. A great day for maritime commerce and insurance! #MaritimeLaw #Insurance #RiskManagement

Every practitioner of English marine insurance law knows that the measure of indemnity for damage to a vessel is the reasonable cost of repairs, translated as “what would have to be expended to put the ship right?” In our recent newsletter, Simon Jackson a partner with Clyde & Co discusses whether repairs should be effected by an Original Equipment Manufacturer (OEM) or a third-party. https://lnkd.in/etyGpg5Q  

Want an overview as to the noteworthy admiralty and maritime decisions from the past year? Check out the ABA's Recent Developments in Admiralty and Maritime Law. Also, great to see Tulane University Law School well represented! Jeanne Amy, Michael Amy, Ilsa Luther, Jessie Elizabeth Shifalo and Abby Weiland. #rollwave #maritimelaw

The U.S. Supreme Court ruled in Great Lakes Insurance Services Group, LLC. v. Raiders Retreat Realty Co., LLC, a maritime insurance case, unanimously backing insurance choice-of-law, meaning insureds must abide by law of the state agreed on with the carrier. The American Institute of Marine Underwriters (AIMU) filed an amicus brief that was cited twice in the Supreme Court decision and highlighted that choice-of-law provisions help to “reduce legal uncertainty” and enable insurance companies to expand the availability of marine insurance and usually at a lower cost. https://bit.ly/3UKHFtV #SCOTUS #SupremeCourt #insurancelaw #marineinsurance

⚖️ Does Loss Due to Storms Fall Under Insurance Coverage? It's really interesting case to share ! In Judgment No. 07/2023/KDTM-PT, the People's Court of Phu Yen ruled in favor of our client, Mr. Trình Xuân V, in a dispute over an insurance claim involving his fishing vessel, PY-96615-TS. 🔍 The insurer initially denied the claim based on an unclear cause of the vessel's sinking and excluded storm-related coverage. However, the court determined that the incident was caused by objective factors—not due to negligence by the shipowner or crew. 📜 Key Legal Takeaway: Under Article 21 of the Law on Insurance Business 2000 (amended in 2010), if contract terms are unclear, they must be interpreted in favor of the insured. This led to the insurer being ordered to pay the full insurance claim of 480 million VND, plus interest, for a total of 516 million VND. ✨ This case highlights the importance of clear insurance agreements and serves as a reminder that ambiguous terms will be interpreted to protect the insured party. For shipowners and operators facing similar challenges, especially in times of storms and natural disasters like Super Typhoon Yagi, this judgment offers valuable insight into your rights and protections. Should you need any help navigating insurance disputes or legal advice on similar issues? THE LAM LAW LLC - Your legal need, Our Mission is here to assist with your legal needs. We specialize in insurance dispute resolution, legal consultation, and commercial arbitration. Don't hesitate to reach out to us for professional support! #TheLamLaw #LegalServices #InsuranceDisputes #CommercialArbitration #InsuranceLaw #VietnamLaw #DisputeResolution #StormDamage #LegalAdvice #Shipowners #NaturalDisasters #BusinessLaw #lawyer #mediation

Check out this blog that I co-authored with Raymond Waid and Jessie Elizabeth Shifalo, which discusses SCOTUS’s recent decision in Great Lakes Insurance regarding choice-of-law clauses.

I have been discussing the issue of insurance coverage for the Baltimore Bridge disaster. This article provides a good overview of the matter. #marinelaw #insurancecoverage