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Maritime Law--Tour Boat Captain Implicated in Tragedy Off Nicaragua

As reported in the Daily Business Review on January 25, 2016, Nicaragua's police, army and navy will investigate the captain of a tourist boat and his assistant for the deaths of 13 Costa Rican passengers killed on January 23rd when the vessel capsized in bad weather. The Reina del Caribe , Spanish for "Caribbean Queen," was carrying 33 people when it went down Saturday amid rain and strong winds as it ferried between the Corn Islands, a popular tourist destination, off Nicaragua's Caribbean coast. The Daily Business Review article can be accessed here=> Daily Business Review article. The government clarified on the 24th that the boat was carrying 25 Costa Ricans, two Americans, two British citizens, a Brazilian and three Nicaraguans. Previous reports had said there were 32 people on board, including four Americans. All the dead were Costa Ricans. Nicaragua's naval commander for the southern Caribbean region said the boat's captain was detained because ...

Maritime Law--South Florida Lawsuit Filed in El Faro Sinking

 The first South Florida lawsuit against the owner of EL FARO , the cargo ship that sunk in Hurricane Joaquin last month, was filed on October 28, 2015 in Broward County Circuit Court. This latest lawsuit claims EL FARO's engine failure and loss of power on October 1st followed many years of lax maintenance. The lawsuit also claims EL FARO was not seaworthy in that the ship was undergoing "significant maintenance" just before it left port September 29th and had a history of losing power. The lawsuit was brought by the widow of Anthony Thomas who seeks damages for herself and for the couple's five children, ages 8 to 29. The lawsuit states the Fort Lauderdale court has jurisdiction because Tote Maritime's registered agent is in Plantation.     This lawsuit is the fourth complaint brought against ship owner Tote Maritime since the deaths of EL FARO's 33 crew members. This latest lawsuit comes just as the Jacksonville-based company see...

Maritime Law--Novel Rule B Attachment Rejected by Eleventh Circuit

In World Wide Supply OU v. Quail Cruises Ship Management , Case No. 14-14838 (11th Cir. Sept. 30, 2015), the Eleventh Circuit Court of Appeals affirmed the district court’s order vacating an attachment of legal settlement funds.  At issue in this appeal was an attachment of property made pursuant to Supplemental Admiralty Rule B. This appeal had a complicated background, involving multiple lawsuits in federal district courts, Florida state court, and a Spanish bankruptcy court. The common denominator of these suits was Quail Cruises Ship Management, from which multiple parties, including participants in the appeal, tried to collect money that they believed Quail owed them. This is not surprising, as there have been numerous cases against Quail due to a failed cruise venture they operated. The money at issue arose from the legal settlement of a dispute over the purchase of a cruise ship featured on ABC Television Network’s long-running series, The Love Boat. The ...

Maritime Law--Further Easing of U.S. Cuba Sanctions Regulations

On September 18, 2015, the Department of the Treasury and the Department of Commerce announced additional revisions to the Cuban Assets Control Regulations (CACR) and Export Administration Regulations (EAR).  The changes take effect on Monday, September 21, 2015, as published in the Federal Register.  These measures are intended generally to do the following:    to further facilitate travel to Cuba for authorized purposes; expand the telecommunications and internet-based services general licenses, including by authorizing certain persons subject to U.S. jurisdiction (which includes individuals and entities) to establish a business presence in Cuba, such as through subsidiaries or joint ventures; allow certain persons to establish a physical presence, such as an office or other facility in Cuba to facilitate authorized transactions; allow certain persons to open and maintain bank accounts in Cuba to use for authorized purposes; ...

Maritime Law--3d DCA Allows Class Action by Doctors Against Celebrity Cruises

In Celebrity Cruises, Inc. v. Rankin, et al , No. 3D14-3137 (Fla. 3d DCA Sept. 16, 2015), Celebrity failed to stave off a class certification case filed by a group of cruise ship doctors suing the company for breach of contract. The Third District Court of Appeal affirmed the trial court decision certifying a class of about 41 doctors who claim they are owed commissions from medication sales.     The Miami-based cruise line owned by Royal Caribbean Cruises Ltd. argued each doctor's understanding of the contract would overwhelm issues common to the class. The court disagreed, finding that common issues dominated individual issues because the class members were all "beneficiaries of [an] identical written contractual provision." The order included an excerpt from Celebrity management's internal emails that stated, "According to the signed contracts, physicians' commission should be on total medical revenue (procedure and medication sales) as o...

Maritime Law--Uberrimae Fidei Defense Now Requires Showing of Reliance in 8th Circuit

In St. Paul Fire & Marine Ins. v. Abhe & Svoboda, Inc ., No. 14-2234 (8th Cir. Aug. 20, 2015), the Eighth Circuit Court of Appeals held that reliance is an element of the defense of uberrimae fidei . Prior to Abhe , only the Second Circuit had so held.  This case is extremely important to insurers and should be required reading for marine insurers and their coverage counsel.       Abhe, an industrial painting contractor, used stationary leased barges as platforms while painting Pell Bridge over Narragansett Bay. Abhe changed insurance carriers three months into the project. St. Paul Fire did not request that Abhe complete an application, but accepted the application provided to its previous insurer in 2010. The attached schedule of vessels was outdated and did not include vessels leased for the Pell Bridge project. Abhe sent St. Paul an updated schedule in 2011, listing those vessels, but did not provide a 2010 survey that showed that...

Maritime Law--Pretrial Stipulation is Trial Blueprint in Florida State Court

In Palm Beach Polo Holdings v. Broward Marine , 40 Fla. Law Weekly D1932 (Fla. 4th DCA Aug. 19, 2015), t he issue of whether the underlying claim was barred by the statute of limitations was memorialized in the pretrial stipulation entered between the parties. By definition and policy, this should have been considered a matter officially at issue in dispute during the trial. However, the trial court concluded that because the relevant statute was not framed in the preliminary instructions to the jury and because the appellants did not argue it in their opening statement, the defense was not properly raised and was waived. The Florida's Fourth District Court of Appeals disagreed. It took the opportunity to remind judges and litigators that the document upon which all parties can always rely on is the Pretrial Stipulation. The appellate court observed that any previous disputes or contentious pretrial issues become mostly irrelevant once the parties prepare and ...