Twenty Grand Offshore, Inc. v. West India Carriers, Inc.

492 F.2d 679, 1974 AMC 2254 (1974)

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Twenty Grand Offshore, Inc. v. West India Carriers, Inc.

United States Court of Appeals for the Fifth Circuit
492 F.2d 679, 1974 AMC 2254 (1974)

CS

Facts

Twenty Grand Offshore, Inc. (TGO) (plaintiff) owned the tug El Mulo Grande. TGO contracted with West India Carriers, Inc. (defendant) to have the El Mulo Grande tow West India Carriers’ barge the Wisco Ranger. The towage contract required each party to fully insure its vessel, include a waiver of subrogation, and name the other party as an additional insured party on the policy. When the El Mulo Grande was towing the Wisco Ranger off the shore of Florida, the vessels encountered heavy weather. The barge broke free from the tug, drifted away, and was damaged when it beached onshore. TGO brought a liability-limitation proceeding in federal district court against West India Carriers. The district court found that TGO was negligent in the towage and that the insurance provision in the towage contract was exculpatory and therefore invalid. TGO appealed the ruling regarding the validity of the contract, but not the finding of negligence.

Rule of Law

Issue

Holding and Reasoning (Dyer, J.)

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