Supreme Court Rules for Insurer in Yacht Damage Case

The insurer refused to honor a claim for damages because a yacht’s fire equipment was outdated, even though the damages weren’t caused by fire.
Supreme Court Rules for Insurer in Yacht Damage Case
Associate Supreme Court Justice Brett Kavanaugh poses for the official photo at the Supreme Court in Washington on Oct. 7, 2022. Olivier Douliery/AFP via Getty Images
Matthew Vadum
Matthew Vadum
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The Supreme Court unanimously overturned a federal appeals court, finding that under U.S. admiralty law, a forum selection provision in an insurance policy must be followed.

Admiralty law, also known as maritime law, is the body of law that governs shipping and navigation. An insurance policy is a kind of contract, and in contracts, the parties can decide which state’s laws are to be used to interpret the contract.