First Specialty Insurance v. American Home Assurance Co.

TORRUELLA, Circuit Judge.

In this insurance case, American Home Assurance Co. (“American”) seeks to recover pursuant to an insurance policy that First Specialty Insurance Corporation (“First Specialty”) issued to Maine Coast Marine Construction, Inc. (“MCMC”). The case presents us with two questions: (1) whether a “watercraft” exclusion in the policy First Specialty issued to MCMC applies to a barge being pulled by a tug and (2) whether Maine law would bar all recovery if the barge is excluded, even though the tug is not excluded. The district court found the exclusion barred all recovery and…