Barge Owner's Oil Spill Defense Costs Deducted From Insurance Liability Limit

摘要

Legal expenses incurred in defending against claims arising from an oil spill on the Mississippi River must be deducted from the total liability limit of a protection and indemnity insurance policy, a federal appeals has held (Gabarick v. Laurin Maritime (America) Inc., 5th Cir., No. 09-30549, 8/10/11). In its Aug. 10 decision, the U.S. Court of Appeals for the Fifth Circuit said that under traditional principles of maritime law defense costs erode limits of liability under such policies. The tanker Tintomara collided with a fuel oil barge being towed by the tugboat Mel Oliver on the Mississippi near New Orleans in 2008. The barge was owned by American Commercial Lines.