5801 Associates, Ltd. v. Continental Insurance Company

This is an interlocutory appeal from a partial summary judgment fixing liabilities in an admiralty case. This case arises from the sinking of the barge OCEAN TRANSPORTER off the coast of South Carolina. The issue in the underlying summary judgment proceeding and on appeal is whether or not the owner of the vessel is entitled to coverage under the barge’s insurance policy where the loss of the vessel was caused, in part, by the bareboat charterer’s failure to maintain the OCEAN TRANSPORTER in a seaworthy condition. 1 We hold that the owner is entitled to such coverage and, accordingly, we…