Admiralty Jurisdiction Applied Where Worker Injured Where Worker Injured While Cleaning Oil Tank Of Barge
FOLKSAMERICA REINSURANCE COMPANY, as successor in interestto Christiania General Insurance Company of New York, Plaintiff-Appellant, v.CLEAN WATER OF NEW YORK, INC., Defendant-Appellee.
Docket No. 03-9124
UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT
2005 U.S. App. LEXIS 13041
November 9, 2004, Argued
June 30, 2005, Decided
PRIOR HISTORY: [*1] Appeal from a memorandum and order entered on August 14, 2003, in the United States District Court for the Eastern District of New York (Block, J.), dismissing the complaint for lack of subject matter jurisdiction in the absence of admiralty jurisdiction. Folksamerica Reinsurance Co. v. Clean Water of N.Y., Inc., 281 F. Supp. 2d 530, 2003 U.S. Dist. LEXIS 13991 (E.D.N.Y., 2003)
PROCEDURAL POSTURE: A worker was injured cleaning an oil tank of a barge moored in New York Harbor. Plaintiff insurer filed suit for a declaration that it had no obligation to defend or indemnify defendant ship tank cleaning business, which had subcontracted the work to the worker's employer. The United States District Court for the Eastern District of New York dismissed the case for lack of maritime jurisdiction under 28 U.S.C.S. § 1333(1). The insurer appealed.
OVERVIEW: The shiprepairers legal liability section and the modified comprehensive general liability (CGL) section together operated seamlessly to provide coverage that was primarily marine in nature. The sections shared a premium and were subject to the same deductible and limitations. The policy was custom-built to fill the gaps that traditional marine insurance policies--hull, collision, and protection and indemnity insurance--left in maritime-industry coverage. The SLL section protected against property damage to vessels undergoing repair, and the CGL section added completed operations, products, pollution, contractual liability, and premises and operations coverage. The provisions rounded out coverage for maritime transport operations and gave ship repair and maintenance coverage. Because one section provided full marine insurance, and the other was specifically modified to cover maritime risks, the policy was marine in nature without the necessity of determining whether the premises and operations coverage was marine or not. The policy's primary objective was marine insurance. It was error to conclude that there was no admiralty jurisdiction under 28 U.S.C.S. § 1333(1).
OUTCOME: The district court's dismissal was vacated and the case was remanded.
