Certain Interested Underwriters at Lloyd's, London v. Bear, LLC

ORDER GRANTING IN PART AND DENYING IN PART THIRD-PARTY DEFENDANT’S MOTION FOR SUMMARY JUDGMENT [ECF NO. 71] AND DENYING MOTION TO STRIKE [ECF No. 110]

Third-Party Defendant Marsh, USA Inc. (“Marsh”) has filed a motion for summary judgment. (Marsh’s Mot, Summ. J. (“Marsh’s MSJ”), ECF No. 71.) For the *1274 reasons set forth below, the motion is granted in part and denied in part.

I. FACTUAL BACKGROUND

This action arises out of an insurance coverage dispute under a marine insurance policy that Marsh brokered for a 102-foot motor vessel (“the Polar Bear”) owned by Third-Party Plaintiff, Bear, LLC (“Bear”).

A.Obtaining Coverage for the Polar Bear

In 2006, Mr. Larry Jodsaas (“Jodsaas”), the owner and managing member of Bear, with the help of Roger Trafton (“Trafton”), the Polar Bear’s captain, entered into a contract with Aleutian Yachts, LLC to build the Polar Bear. (Decl. of Roger Traf-ton, in Supp. of Bear’s Opp’n to Marsh’s MSJ (“Bear Opp’n”), ECF No. 101-14, ¶ 5.) After construction for the Polar Bear was completed in 2011, marine surveyors valued the Polar Bear at $17 million. (Marsh’s Ex. 23 in Supp. of Marsh’s MSJ (“Marsh’s Ex.”), ECF No. 71-4.) Having contracted for…