Gulf Tampa Drydock Co. v. Great Atlantic Ins. Co.

• Decision Date: 15 April 1985
• Docket Number: No. 84-3294,84-3294
• Citation: 757 F.2d 1172
• Parties: GULF TAMPA DRYDOCK COMPANY, Plaintiff-Appellant, v. GREAT ATLANTIC INSURANCE COMPANY, Defendant-Appellee.
• Court: U.S. Court of Appeals — Eleventh Circuit

Page 1172

757 F.2d 1172

GULF TAMPA DRYDOCK COMPANY, Plaintiff-Appellant, v. GREAT ATLANTIC INSURANCE COMPANY, Defendant-Appellee.

No. 84-3294.

United States Court of Appeals, Eleventh Circuit.

April 15, 1985.

D. Lawrence Rayburn, Tampa, Fla., for plaintiff-appellant.

Carl R. Nelson, Tampa, Fla., for defendant-appellee.

Appeal from the United States District Court for the Middle District of Florida.

Before HILL, KRAVITCH and SMITH, ^* Circuit Judges.

JAMES C. HILL, Circuit Judge:

In this appeal we must determine the scope of insurance coverage provided by a maritime ship repairer's liability policy. The insured, Gulf Tampa Drydock Company The facts in this case have been stipulated. This litigation results from a suit brought in federal district court in Louisiana against the M/V Alice St. Philip by the owners of two vessels. The plaintiffs in that case alleged that the sudden swerving of the M/V Alice St. Philip caused a collision between the M/S Frotaleste and the M/V Cunene. The M/V Alice St. Philip claimed that the swerving was caused by a failure in the steering mechanism which allegedly had been negligently repaired by Gulf Tampa. ¹ Gulf Tampa was thus required to appear and defend as third-party defendant. Gulf Tampa, in turn, requested indemnification from and tendered the defense to its insurer, Great Atlantic. Great Atlantic denied coverage and refused to defend the third-party complaint; Gulf Tampa then initiated this action seeking a judgment declaring Great Atlantic's obligation to defend the suit and indemnify against any liability.

(Gulf Tampa), appeals from an adverse summary judgment ruling in which the district court found that the insurer, Great Atlantic Insurance Company (Great Atlantic), had no obligation to defend or provide coverage against a third-party complaint brought against Gulf Tampa. We affirm, holding that the provisions of the insurance contract are not ambiguous, and that the policy does not provide coverage in the present situation.

DISCUSSION

As an initial matter, we must determine what law will control the question of coverage. As the parties correctly point out in their briefs, admiralty courts will generally look to appropriate state law in determining questions involving a marine insurance contract. Wilburn Boat Co. v. Fireman's Fund Insurance Co., 348 U.S. 310, 315-21, 75 S.Ct. 368, 371-74, 99 L.Ed. 337 (1955); Irwin v. Eagle Star Insurance Co., 455 F.2d 827 (5th Cir.), cert. denied, 409 U.S. 852, 93 S.Ct. 118, 34 L.Ed.2d 95 (1972). However, the question remains as to which state law is appropriate. In the instant case, the insurer is a Canadian company. The insured is a Florida corporation, doing business in Florida. The insurance policy was delivered in Florida. The alleged negligent repairs were performed in Florida, while the resulting injury (the collision of the two vessels) occurred in Louisiana. Both parties in the instant case have apparently agreed that Florida law should be applied. Florida's is the applicable state law. See Irwin, 455 F.2d at 830.

Since the parties stipulated to the facts, we are faced with only one question on appeal: whether the district court correctly construed the insurance policy to preclude coverage. The district court's conclusion as to the ambiguity of the insurance policy is a question of law and therefore subject to plenary review. Cathbake Investment Co. v. Fisk Electric Co., 700 F.2d 654, 656 (11th Cir.1983). Under Florida law, the interpretation of an insurance contract is also a matter of law to be decided by the court, which is subject to plenary review. Smith v. State Farm Mutual Automobile Insurance Co., 231 So.2d 193, 194 (Fla.1970) (where evidence is undisputed, construction and interpretation of insurance contract to be decided by the court); see Rigel v. National Casualty Insurance, 76 So.2d 285, 286 (Fla.1954).

Under Florida law, an insurance policy should be construed in its entirety and given the construction which reflects the intent of the parties. Landress Auto Wrecking Co. v. United States Fidelity & Guaranty Co., 696 F.2d 1290, 1291 (11th Cir.1983) (applying Florida law). When the language of a policy is unclear or confusing, the language must be construed against the insurer. Id.; Rigel, 76 So.2d at 286; 30 Florida Jur.2d, Insurance Sec. 406 (1981). However, ambiguity exists in an insurance policy only when its terms make the contract susceptible to different reasonable interpretations, one resulting in coverage and one resulting in exclusion. Blue Shield of Florida, Inc. v. Woodlief, 359 So.2d 883, 884 (Fla.App.1978). Ambiguity is not invariably present when analysis is required to interpret the policy. Id.

The applicable provisions of the insurance policy read as follows:

1. In consideration of the above premium, this policy covers the legal liability of the assured, as ship repairers and/or ship builders and/or storers and/or marina operators of boats in the care and/or custody of this assured on the premises described hereunder and for which the assured may be held legally liable, such legal liability only as imposed upon them by law, and from which they cannot release themselves, arising during the currency thereof in respect of all accidents, losses and damages which may be sustained by any vessel or vessels and/or their equipment and/or parts and/or cargo, on which they may be engaged or preparing to engage in work or operations, or vessels which may be in their charge and/or arising from and/or in connection with the conduct of their plant.

This insurance to include vessels on dry dock and/or marine railways used in connection therewith and including work on or in connection with...