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US district court finds admiralty law takes precedence over state statute.
(From Lloyds List)
Byline: DeRossi loses claim relating to marine insurance contract, writes Sandra Speares
IF a conflict occurs between a state statute and judicially established admiralty law the admiralty law takes precedence, a US court has confirmed.
The US District Court for the District of Connecticut ruled in favour of defendants National Loss Management, National Marine Underwriters and Hanover Insurance Company in a case brought by John DeRossi.
The plaintiff alleged that the defendants had breached a marine insurance contract and their conduct amounted to bad faith. Mr DeRossi also alleged that the actions of the defendants were in breach of the Connecticut Unfair Trade Practices Act and the Connecticut Unfair Insurance Practices Act. He sought punitive damages and costs.
The defendants argued that federal admiralty law pre-empted Mr DeRossi's state claims and that punitive damages were not recoverable in admiralty.
They also argued that Mr DeRossi's claims based on equitable estoppel and bad faith were barred by the time provisions agreed by the parties.
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