Fireman’s Fund Ins. Co. v. Great Am. Ins. Co.
(United States Second Circuit) – In a case brought by insurance companies against underwriters seeking contribution for losses and cleanup costs stemming from a dry dock that sank, the District Court’s grant of summary judgment to defendants is affirmed where: 1) defendant Great American’s pollution insurance policy was a marine insurance contract subject to the doctrine of uberrimae fidei, and defendant Signal’s failure to disclose that the dry dock had deteriorated and that repairs recommended over several years had not been made violated its duty of utmost good faith under that doctrine; and 2) defendant Signal materially misrepresented the dry dock’s condition when it applied for coverage from defendant MSI.View Full Article on