Magistrate Judge James Francis
An insurance dispute arose from a July 2008 collision, on the Mississippi River, in which one of American Commercial Lines’ (ACL) barges spilled 300,000 gallons of fuel oil into the river. At the time, Water Quality Insurance Syndicate (WQIS) was ACL’s primary pollution carrier. ACL and several of its excess carriers sought partial summary judgment on six of WQIS’ affirmative defenses. Opposing judgment on three of those defenses, WQIS cross-moved for partial summary judgment, arguing that the same coverage was barred because ACL did not receive WQIS’ prior consent for certain defense costs. Finding the issue to be whether the prior consent requirement were met or waived, the magistrate judge recommended that ACL be granted summary judgment on WQIS’ first, second, third, fourth and seventh affirmative defenses but that ACL should be granted judgment on WQIS’ seventh such defense on the extent of granting Phase I and Phase II costs incurred by Maritime Alliance Group Inc. and Entrix, and Phase II costs incurred by Worley Catastrophe Response LLC and Walker. As to Phase II the magistrate rejected ACL’s claim that WQIS’ repudiation of the policy relieved it of the need to comply with the prior consent clause.
