St. Paul Fire & Marine Insurance Co. v. Lago Canyon, Inc.

561 F.3d 1181 (2009)

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St. Paul Fire & Marine Insurance Co. v. Lago Canyon, Inc.

United States Court of Appeals for the Eleventh Circuit
561 F.3d 1181 (2009)

CS

Facts

Lago Canyon, Inc. (defendant) owned a yacht that was partially sunk and damaged while at a dock. Lago Canyon filed a damage claim under its marine-insurance policy with its insurer, St. Paul Fire & Marine Insurance Co. (St. Paul) (plaintiff). St. Paul believed that the damage occurred as a result of corrosion, which was not covered under the insurance policy. St. Paul filed a complaint in admiralty for declaratory judgment that it was not liable for the claim. Lago Canyon counterclaimed for breach of contract under the insurance policy and requested a jury trial. The district court refused to grant Lago Canyon’s demand for a jury trial. After a bench trial, the court held that corrosion was the cause of the damage and that St. Paul was therefore not liable for the loss. Lago Canyon appealed, alleging that the court erred in applying admiralty law and in refusing Lago Canyon’s demand for a jury trial.

Rule of Law

Issue

Holding and Reasoning (Hull, J.)

Concurrence (Wilson, J.)

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Casebooks

Admiralty

Key Terms