May 13, 2019

The 2^nd U.S. Circuit Court of Appeals in New York has affirmed the lower courts $750,000 judgment in favor of an American International Group Inc. unit in connection with a dinner-cruise ship that sank in a marina after suffering damages from Superstorm Sandy. The case is National Union Fire Insurance Co. of Pittsburgh, Pa. v. Garpo Marine Services Inc. No. 17-3286, 2019 U.S. App. LEXIS 13870 (2d Cir. May 9, 2019)  

In 2012, the owners of the dinner-cruise ship, called Star of America, entered into a repair agreement with Garpo Marine Services, Inc., a marine and commercial ship repair business. Under the agreement, Star of America would be delivered on October 28, 2012, and hauled to dry land before Superstorm Sandy hit New York City on October 29^th. Unfortunately, the boat was not hauled into land prior to the arrival of the storm and, during the high winds and rains the boat was battered against the dock to which it was tied, and ultimately sank. National Union, acting as a subrogee of the owners of Star of America, filed a lawsuit in the U.S. District Court in Brooklyn. Using a maritime law analysis the court ruled in favor of National Union and awarded it $750,000.