Eighth Circuit Keeps the Faith: Utmost Good Faith Admiralty Insurance Rule Cannot be Pre-empted

Thursday July 17, Judge Murphy of the Eighth Circuit concluded that the doctrine of utmost good faith is a judicially established federal admiralty rule, thus preempting the application of state laws.

In February of 2011, The Mark Twain, a cement barge, sank to the bottom of the Mississippi River.  Just four months prior, its owner, Continental Cement Co, applied to Starr Indemnity & Liability for a marine insurance policy to cover all of its barges.  Continental, however, neglected to submit a 2008 general condition survey …

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