Quigg Brothers-Schermer, Inc. v. Commercial Union Insurance

This appeal presents an insurance coverage question. International Marine Underwriters (IMU), a division of Commercial Union Insurance Company, appeals the judgment in favor of Quigg Brothers-Sehermer, Inc. (Quigg Brothers). We reverse and render.

During a storm in November, 1995, two of the Quigg Brothers’ construction barges, the SKOOKUM and the NO. 11 SCOW, broke from their moorings near the mouth of the Quillayute River and were carried downstream to La Push Harbor. The barges eventually landed on First Beach within the Quileute Indian Reservation, adjoining the coastal waters within the Olympic Coast National Marine Sanctuary. The presence of the barges on First Beach created several liability risks, including the possibility that the barges might wash back into the sanctuary or discharge oil, resulting in fines for nonconforming use and reimbursement for government removal. Quigg Brothers acted swiftly to secure, repair and tow the barges back to the Quigg Brothers’ yard, incurring a total cost of $53,796.81.

Quigg Brothers obtained a marine subscription insurance policy which included both hull insurance clauses and protection and indemnity (P & I) insurance clauses.…