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Chartwell attorneys Marcus G. Mahfood and Samantha N. Nugent, with the support of paralegal Martha Caudillo, secured a complete defense verdict on behalf of a marine insurer client following a bench trial in the U.S. District Court for the Southern District of Florida.
The case arose after the owner of a 53-foot sailing catamaran ran aground on a coral reef off the coast of Puerto Rico, resulting in a total loss of the vessel. The insured had embarked on an overnight voyage from Tortola, British Virgin Islands, to San Juan, Puerto Rico, with only his daughter aboard. He later acknowledged that he had likely fallen asleep at the helm before the grounding occurred.
Following the loss, the vessel owner sought coverage under his marine insurance policy. The claim was denied based on multiple policy provisions, including the policy's single-handed operation exclusion and unseaworthiness exclusion. During the coverage investigation, the insurer nevertheless paid more than $166,000 to salvage the vessel and prevent environmental damage.
The vessel owner subsequently filed suit for breach of the marine insurance contract. Marcus and Samantha defended the coverage denial, arguing that it was fully supported by both the policy's terms and the facts of the case. They also filed a counterclaim seeking reimbursement of the salvage expenses the insurer had incurred.
Following the trial, the court ruled that the coverage denial was proper and that no coverage existed under the policy. The court also found in favor of the insurer on its counterclaim, ordering the insured to reimburse the costs of the salvage operation.
Congratulations to Marcus, Samantha, and Martha on this impressive result and their successful representation of a valued firm client.
