Summary Judgment Granted in Insurance and Marine Law Matter

March 27, 2012

The Orange County Superior Court granted summary judgment in an insurance breach of contract and bad faith matter argued by Carolyn A. Mathews.

In 2007, the plaintiff purchased a 1958 classic Chris Craft wood hulled boat. In 2007 and 2008, he invested in repairs of the boat’s bottom planks, interior and engine. In November of 2009, the boat sank while berthed in Newport Beach. The defendant insurance company hired a surveyor to perform an inspection and float test. The surveyor found water coming in through deteriorated planking at the boat’s transom. The insurance company denied the claim on the basis that gradual deterioration caused the boat to sink.

At his deposition, the plaintiff testified that he sailed the boat two days prior to the sinking. He said he sailed around the harbor and, other than having the boat's battery jumped, had no problems or impact. Plaintiff maintained the sinking was accidental.

In opposition to defendant's Motion for Summary Judgment, the plaintiff claimed, for the first time, that two days prior to the sinking he took the boat out of the harbor beyond the break water, and a wave from a large ship caused his boat to rise up and crash down, impacting hard on the water.

Summary judgment was granted to the defense as the plaintiff violated the maritime doctrine of uberrimae fidei by not immediately coming forward with information about traveling out of the harbor and the impact from the wave to his insurer.