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Liverpool and London S.S. Protection & Indemnity Association Ltd. v. Queen of Leman M/V

296 F.3d 350 (2002)

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Liverpool and London S.S. Protection & Indemnity Association Ltd. v. Queen of Leman M/V

United States Court of Appeals for the Fifth Circuit
296 F.3d 350 (2002)

AR

Facts

Liverpool and London S.S. Protection & Indemnity Association Ltd. (Liverpool) (plaintiff) filed suit against Queen of Leman M/V (Queen) (defendant) to seize the Queen for unpaid insurance premiums. The Queen was sold, and Liverpool asserted a lien against the proceeds. Tokio Marine and Fire Insurance Company, Ltd. (Tokio), who had insured the Queen’s cargo, filed a motion for summary judgment, arguing that Liverpool did not have a maritime lien because the insurance contract’ choice-of-law provisions called for English substantive law to apply and no maritime lien was available under English law. The court ruled in Tokio’s favor, and Liverpool appealed. The court noted that the insurance contract’s language provided for a “lien in any jurisdiction in accordance with local law in such jurisdiction” and “a lien on the ships of a member” for any unpaid premiums. Consequently, the contract’s references to a lien had to allow for the existence of a lien.

Rule of Law

Issue

Holding and Reasoning (Benavides, J.)

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