American Marine Corporation v. Citizens Casualty Company of New York

JOHN R. BROWN, Chief Judge:

On December 25, 1965 the tank barge Bayou Queue stranded and partially sank in the Mississippi River south of Memphis, Tennessee. Shipowner 1 shortly thereafter notified the Underwriter 2 of the loss and successful salvage operations were undertaken by Underwriter for which it paid out approximately $25,-000 in sue and labor expense. On August 2, 1968 Shipowner submitted formal proof of loss as required by the terms of the policy. In turn, Underwriter advised that the incident was still being investigated and that no decision had been made respecting payment of the…