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Admiralty Law Keyed to Maraist
Crown Zellerbach Corp. v. Ingram Industries
Citation:
783 F.2d 1296, 1986 A.M.C. 1471 (1986)Facts
The tugboat F.R. BIGELOW, owned by Ingram Industries, was pushing 15 loaded barges down the Mississippi River in heavy fog and rain on February 3, 1979, when its forward lead barge collided with Crown Zellerbach’s water intake structure above Baton Rouge, Louisiana. CZ began repairs, but these were interrupted on May 18, 1979, when another tugboat collided with the structure. CZ sued Ingram and later amended its complaint to include Ingram’s insurers under Louisiana’s Direct Action Statute. Ingram had two P&I insurance policies: a primary policy with Cherokee Insurance Company for $1 million and an excess policy with London Steam-Ship. London Steam-Ship’s policy contained Rule 8(i), which limited its liability to the amount of the shipowner’s limited liability. The District Court granted Ingram’s limitation of liability petition, valuing the vessel at $2,134,918.88, but held London Steam-Ship liable for the portion of damages exceeding this amount ($1,813,291.44).
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