Lusitania Catastrophe–Part III: Federal Court, Southern District of New York
THE SINKING OF THE LUSITANIA AND INSURANCE*–
*There will be little out-and-out said in this essay about insurance. It lurks behind everything, however. This blog is about a judicial decision regarding negligence on the part of the owner of the ship–the Cunard Line–and its employees. If the relevant war risk insurance covering the vessel contained a liability part, then that insurer may have hired the lawyers representing Cunard Line. Obviously, the issues of this case are a potential foundation of liability insurer liability. Part I is found in Quinn’s Commentaries on Insurance Law and is dated March 11, 2015. Part II pertains to the judicial inquiry which took place in England almost immediately after the sinking. It is to be found in Quinn’s Commentaries on Lawyers and Lawyering. “Lusitania Catastrophe-Part II: Wreck Commission,” Blog Date April 30, 2015. A version of this blog will also occur in Quinn’s Commentaries on Insurance Law.
Lusitania Torpedo Catastrophe:
Cunard Limits Liability: Federal Litigation
Part III
Michael Sean Quinn
(See below for more information.)
Some Quick Background
What would now be called personal injury litigation was initiated in the United States almost immediately after the ship was sunk, no doubt because at least most of the plaintiff’s were family members or beneficiaries under the estates of Americans killed in the attack.
Nowadays, of course, most personal injury cases, including wrongful death cases are litigated individually or as class actions. Admirality situations may be a bit different sometimes. There were no class actions in 1915; they didn’t exist as litigation entities yet, and there weren’t going to be any for a long time. Consequently, there were many actions filed, almost certainly, all of them against the owner of the vessel and maybe a travel agent or two, since Germany had taken out an ad in some newspapers, in effect, warning people of the dangers of getting on any cruise vessel going to Great Britain.
Today, the chances are that liability carriers would be involved to some degree in defending a target defendant, assuming it is insured. So, did Canard Steam Ship, Ltd, the owner of the Lusitania, have an insurer with a duty to defend? It had war risk insurance that covered the ship itself plus its cargo, and with an exposure that large, undoubtedly, there was reinsurance and hence probably reinsurers. But I don’t know whether the war risk property insurance policy also had a liability section.
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