Legal Talk

Choice-of-law may not be yours to make

The Supreme Court is set to weigh in on whether a choice-of-law clause in a marine insurance contract can be voided if enforcement would violate a “strong public policy” of the state whose law is displaced.

In Great Lakes Insurance SE v. Raiders Retreat Realty Co. LLC, Raiders Retreat owned a yacht that ran aground and incurred damage. The company submitted a claim to its insurer, Great Lakes, which denied the claim on the basis that the company failed to maintain the yacht’s re-suppression equipment. The insurer sought a declaration that the policy was void and unenforceable due to Raiders Retreat’s failure to reinspect and recertify the re-suppression equipment, which had nothing to do with the grounding or damage to the vessel.

The company led counter claims against Great Lakes under Pennsylvania law for bad faith and breach of the state’s unfair and deceptive trade