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Formosa Plastics Corporation (u.s.a.) and Formosa Plastics Corporation (Taiwan), Cross-Appellants v. Arthur Collwyn Sturge, Individually and as the Representative of All Members of Those Syndicates Subscribing to Lloyd's Policy No. 79jc10328 and All Insurance Companies, Members of the Institute of London Underwriters, Severally Subscribing to Policy No. 79jc10328, Cross-Appellee

Citation: 848 F.2d 390Docket: 1148

Court: Court of Appeals for the Second Circuit; June 13, 1988; Federal Appellate Court

Narrative Opinion Summary

Formosa Plastics Corporation (U.S.A. and Taiwan) filed a lawsuit against Arthur Collwyn Sturge and associated insurance entities for breach of a marine insurance policy related to damages incurred during the ocean transport of ethylene dichloride. The United States District Court for the Southern District of New York awarded $581,595.56 in damages to Formosa Plastics. Sturge appealed, arguing that the district court's findings regarding the extent of the damages were clearly erroneous. The appellate court, however, affirmed the lower court's decision, finding no merit in Sturge's arguments, including those related to the "Bailee Clause" of the insurance policy, and supporting the reasoning provided in the lower court's opinion. The case was adjudicated by Circuit Judges Meskill and Winter, along with District Judge Stewart, who sat by designation.

Legal Issues Addressed

Appellate Review of District Court's Findings

Application: The appellate court reviewed and upheld the district court's findings on damages, dismissing the appellant's claims of error.

Reasoning: Sturge appealed, arguing that the district court's findings regarding the extent of the damages were clearly erroneous. The appellate court, however, affirmed the lower court's decision, finding no merit in Sturge's arguments.

Breach of Marine Insurance Policy

Application: The court examined and ruled on the breach of a marine insurance policy concerning damages during ocean transport.

Reasoning: Formosa Plastics Corporation (U.S.A. and Taiwan) filed a lawsuit against Arthur Collwyn Sturge and associated insurance entities for breach of a marine insurance policy related to damages incurred during the ocean transport of ethylene dichloride.

Interpretation of 'Bailee Clause' in Insurance Policy

Application: The court addressed and dismissed arguments concerning the interpretation of the 'Bailee Clause' within the insurance policy.

Reasoning: The appellate court, however, affirmed the lower court's decision, finding no merit in Sturge's arguments, including those related to the 'Bailee Clause' of the insurance policy.