946 F. Supp. 2d 256
D.P.R.2013Background
- Catlin moved for reconsideration of the court's earlier dismissal and sought to reopen Case No. 11-2093.
- The court had previously held that the Perseverence is not a vessel under Lozman, denying admiralty jurisdiction.
- Catlin argued admiralty jurisdiction exists because the dispute concerns a marine insurance policy, and alternatively, diversity jurisdiction exists under 28 U.S.C. § 1332.
- Defendant San Juan Towing & Marine Services, Inc. opposed, conceding Catlin properly pled diversity.
- The court ultimately found both diversity and admiralty jurisdiction exist over the policy dispute, and vacated the dismissal, reopening Case No. 11-2093.
- The court analyzed whether the policy is marine insurance and whether the Perseverence constitutes a maritime interest sufficient to confer admiralty jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether diversity jurisdiction exists | Catlin properly pled diversity and amount in controversy exceeds $75,000. | SJT does not argue lack of diversity; argues vessel status not dispositive for jurisdiction. | Diversity jurisdiction exists; subject matter jurisdiction is proper. |
| Whether admiralty jurisdiction exists over the insurance policy | Policy is marine insurance, and thus the contract is maritime in nature. | Policy is not maritime because Perseverence is not a vessel, so the contract is not a maritime contract. | The Policy is a maritime contract, and admiralty jurisdiction exists. |
| Whether the Perseverence constitutes a maritime interest | Perseverence is a maritime interest as a drydock used for vessel maintenance and repair. | Non-vessel status precludes maritime interest. | Perseverence is a maritime interest; it engages in traditional maritime activity and supports admiralty jurisdiction. |
Key Cases Cited
- Kirby v. United States, 543 U.S. 14 (U.S. 2004) (contract analysis must look to nature and character, not vessel status)
- Dunham, 78 U.S. 1 (U.S. 1870) (maritime contract requires relation to navigation or maritime commerce)
- Sea Vessel, Inc. v. Reyes, 23 F.3d 345 (11th Cir. 1994) (routine vessel repair related to maritime activity supports jurisdiction)
- Exxon Corp. v. Central Gulf Lines, Inc., 500 U.S. 603 (U.S. 1991) (service is maritime regardless of afloat or dry dock status)
- N.H. Ins. Co. v. Home Savings & Loan Co., 581 F.3d 420 (6th Cir. 2009) (identify maritime nature by looking at insured interests and primary objective)
- Folksamerica Reinsurance Co. v. Clean Water of N.Y., Inc., 413 F.3d 307 (2d Cir. 2005) (determine maritime status by contract’s primary objective and insured interests)
- Royal Ins. Co. v. Pier 39 Ltd. P’ship, 738 F.2d 1035 (9th Cir. 1984) (interests insured must be maritime for admiralty jurisdiction)
- Acadia Ins. Co. v. McNeil, 116 F.3d 599 (1st Cir. 1997) (maritime contract analysis considers insured interests and risks)
- Sisson v. Ruby, 497 U.S. 358 (U.S. 1990) (storage/maintenance related to maritime activity supports jurisdiction)
