A couple of interesting decisions have come down from the First and Fourth Circuit Courts of Appeal that are of interest to maritime practitioners. The first, relates to a marine insurance policy and its applicability resulting from a vessel seizure; the second, relates to the arbitrability of maintenance and cure, seaman's wages and other such claims. In Markel Am. Ins. Co. v. Diaz-Santiago , the First Circuit Court of Appeals affirmed the trial court below. In 2008, MDS purchased a vessel and executed a note in favor of FirstBank, secured by a preferred ship mortgage under an agreement that required that they maintain insurance. In 2009, Customs and Border Protection seized the vessel as part of a drug enforcement action. The search and seizure damaged the vessel, significantly decreasing its value. Customs notified FirstBank, which initiated an administrative forfeiture proceeding, intervened in the criminal case, obtained voluntary dismissal of the indictment again...
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