Edinburgh Assurance Co. v. R. L. Burns Corp.
Opinion
Opinion
Williams, J.
MEMORANDUM
American Pacific International, Inc. (“API”) and R. L. Bums Corporation (“Burns”) obtained insurance from certain syndicates at Lloyd’s of London and certain insurance corporations, members of the Institute of London Underwriters. The insurance covered risks attendant to the proposed salvage of the off-shore mobile drilling platform Gatto Selvático (“Gatto”) disabled in the Mozambique Channel off the coast of Madagascar. Admiralty and maririme jurisdiction is found under 28 U.S.C. § 1333 . Plaintiff insurers brought this declaratory action seeking judgment that no insured event had occurred entitling API and Burns to recover. API and Burns seek a declaration that an insured event did occur and for an insurance recovery and compensatory damages. Since the insurance contract at issue insured the Gatto venture against “Actual Total Loss Only,” the principal issues are the meaning of this contract term and whether there occurred a casualty within the meaning of the term. Subsidiary issues include determinations of agency relationships among the insured several insurance brokers, and the insurers; and choice of law determinations.