Atlantic Marine Florida, LLC v. Evanston Ins. Co., No. 13-11342 (11th Cir. 2014)Annotate this Case
The underlying case stemmed from a tragic accident that occurred on an oceangoing passenger vessel that resulted in the death of the captain. Under these circumstances, a marine engineering firm purchased an architect’s and engineer’s professional liability insurance policy, which insured the firm against any liability it might incur in a tort action for the negligent preparation of working drawings used to build the vessel. At issue was whether, under the terms of the architect's and engineer's professional liability (A&E) policy, Evanston was obligated to provide AMI a defense in the underlying lawsuit. Also at issue was whether the A&E policy obligated Evanston to pay American Home, as AMI's subrogee, the price of its settlement in the underlying lawsuit. The court found no basis for the district court's third-party beneficiary finding and set aside the district court's determination that Evanston was obligated to provide AMI a defense. The court concluded that the district court erred in holding that Evanston was liable for the $325,000 sum American Home paid in the underlying lawsuit to settle the claims where American Home failed to establish, as established by Endorsement No. 11, that AMI's liability for the captain's death was the result of an act, error, or omission of GPA arising out of the professional services it had performed. Accordingly, the court reversed the judgment of the district court.