摘要: |
The Supreme Court is set to weigh in on whether a choice-of-law clause in a marine insurance contract can be voided if enforcement would violate a "strong public policy" of the state whose law is displaced. In Great Lakes Insurance SE v. Raiders Retreat Realty Co. LLC, Raiders Retreat owned a yacht that ran aground and incurred damage. The company submitted a claim to its insurer, Great Lakes, which denied the claim on the basis that the company failed to maintain the yacht's fire-suppression equipment. The insurer sought a declaration that the policy was void and unenforceable due to Raiders Retreat's failure to reinspect and recertify the fire-suppression equipment, which had nothing to do with the grounding or damage to the vessel. The company filed counter claims against Great Lakes under Pennsylvania law for bad faith and breach of the state's unfair and deceptive trade practices law. The case turned on whether Pennsylvania law applied, which would allow Raiders Retreat's claims, or if New York law would apply as the chosen law in the policy, which would not allow the claims. The insurer moved for judgment on the pleadings asserting that the insurance policy included a choice of New York law, which precluded Raiders Retreat's claims brought under Pennsylvania law. The district court upheld the New York choice-of-law provision. |