Magnolia Marine Transport Co., Inc. v. Laplace Towing Corp.

REAVLEY, Circuit Judge:

The district court has decided that the underwriters of a vessel owner’s marine insurance policy has standing under the Limited Liability Act to demand that the federal court interpret whether the policy limited the underwriters’ liability to the amount of the owner’s liability. The district court then refused to permit claimants to proceed in state court against the owner and underwriters without specifically conceding the right of the underwriters to litigate policy interpretation in the admiralty court. The district court consequently stayed prosecution of claims…