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U.S. District Court

Insurance company not liable for cargo damaged after being diverted to safer port.

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Judge Baer

NEW YORK MARINE & GENERAL INSURANCE CO. v. TRADELINE (L.L.C.) — The United States Court of Appeals for the Second Circuit remanded this case to determine whether a marine cargo insurance policy remained in effect at the time water damaged a portion of a diammonium phosphate shipment, which was stored in a shore-side silo at Jawaharlal Nehru Port Trust, India (“JNPT”). At the commencement of this litigation, plaintiff New York Marine & General Insurance Co. (“NY Marine”) sought a declaratory judgment that it is not liable to defendants for the cargo damaged at the JNPT port. Defendants Tradeline (L.L.C.) (“Tradeline”) and Deepak Fertilisers and Petrochemicals Corp. Ltd. (“Deepak”) counterclaimed against NY Marine for breach of the insurance policy for failing to pay Deepak’s claim. For the foregoing reasons, I find that the insurance policy did not extend to cover the water damage to the DAP at JNPT, and therefore NY Marine is not liable to defendants.

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