How “Choice Of Law” Affected A Judge’s Interpretation Of A Boating Insurance Policy
How “Choice Of Law” Affected A Judge’s Interpretation Of A Boating Insurance Policy Jul 26, 2022 When interpreting an insurance policy, the choice of law will often determine how a court will enforce that policy’s terms. In this context, choice of law refers to which state’s laws govern the policy. Or in some cases, whether federal law may also apply. A recent decision from a federal judge here in Florida, Great Lakes Insurance SE v. Lassiter, provides a case in point. This insurance dispute involved both federal and state choice-of-law questions–specifically, what laws to apply to a boating accident. A man named Lassiter leased a boat called Shmily from a corporate owner. Lassiter hired another named Russick to captain the boat. Russick, acting as Lassiter’s intermediary, applied for an insurance policy for the boat. In that application, Russick failed to disclose the fact Lassiter had a 15-year-old misdemeanor domestic violence conviction. This will become relevant later. The insurance policy included a “Named Operator Warranty.” This basically meant that the insurer would only cover a loss if the boat was “operated only by covered persons,” which in this case meant Captain Russick. One day, Russick and Lassiter took the boat out for a test run. Russick remained on the vessel’s bridge but his first mate was actually at the helm. The boat “abruptly ran aground,” according to court records as it hit a sandbar. Russick retook the helm but he could not dislodge the boat. Lassiter subsequently filed a claim with his insurance company. After an investigation, the insurer denied the claim. Lassiter filed a lawsuit. The judge had to first determine what law to apply. Marine insurance contracts typically fall under admiralty law, which is a type of federal jurisdiction. This means that federal law trumps state law. But where there are any “gaps” in federal law, the relevant state law still applies. Lassiter argued that Florida law should fill in the gaps. The insurer argued that under the terms of the insurance policy, New York law must apply. The judge agreed with the insurer. Under New York law, Lassiter was out of luck. The main problem was that as noted above, the captain was not actually at the helm when the accident occurred. The Named Operator Warranty said that only listed persons could “operate” the boat. That included taking the helm. Indeed, as the first mate had helmed the boat on at least two occasions prior to the accident, the insurance policy was technically void the first time someone other than the captain was at the controls. The judge said there still remained a disputed question over how long the policy was in effect. This question centered on the failure to mention Lassiter’s prior misdemeanor conviction on the insurance application. The insurer said this voided the policy from the outset based on its internal procedures. The judge said it was not clear at this stage of the litigation whether the omission was actually “material to the underwriting process.” Speak with a Florida Insurance Lawyer Today Insurance policies often involve complicated legal questions that can only be sorted out in court. If you need advice or representation from a qualified Tampa insurance attorney, contact HD Law Partners today to schedule a consultation. Source: scholar.google.com/scholar_case?case=813-253-5333931108841 Posted in Insurance Defense | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us