National Liability & Fire Insurance v. R & R Marine, Inc.

PRISCILLA R. OWEN, Circuit Judge:

This case arises out of the sinking of a vessel owned by Hornbeck Offshore Service (Hornbeck) while at R & R Marine’s (R & R) shipyard for repairs. R & R’s liability insurer, National Liability & Fire Insurance Company (National), initiated this suit to disclaim liability under its policy. Hornbeck counterclaimed that the policy obligated National to cover all sums for which R & R became obligated to pay and cross-claimed against R & R to assert that R & R’s negligence caused the sinking of its vessel. The district court found that R & R was negligent and that…