Commercial Union Insurance v. Flagship Marine Services, Inc.
Docket: No. 95 Civ. 0496 (DAB)
Court: District Court, S.D. New York; May 25, 1995; Federal District Court
Defendant Flagship Marine's motion to transfer venue to the Middle District of Florida was denied by the Court. The case originated from a marine insurance contract between Plaintiff Commercial Union Insurance Company and Flagship Marine, negotiated in New York, which provided coverage for towing yachts up to 50 feet unless additional approval was obtained for larger vessels. The dispute arose following an incident on November 13, 1994, when Captain Gary McLean was injured while towing a dinner cruise boat allegedly over 50 feet long. Commercial Union filed a Complaint on January 23, 1995, seeking a declaration regarding its liability, asserting that its insurance obligations were void due to the towing of a vessel exceeding the specified length.
Subsequent to this, McLean initiated a lawsuit in Florida state court, and other related parties filed for limitation of liability in federal court in Florida. Flagship Marine sought to transfer the venue, invoking 28 U.S.C. 1404, which allows for transfer based on convenience and the interests of justice. However, the Court emphasized that Plaintiff's choice of forum should not be disturbed without strong justification from the Defendant.
In evaluating the motion, the Court found that the contract was negotiated in New York and that all relevant documentation was also located there. Furthermore, the contract's coverage was not limited to Florida's coastal waters, contradicting Defendant's assertions. Although witnesses to the accident are based in Florida, the litigation focuses on the insurance contract's terms rather than the accident's details, thus failing to meet the Defendant's burden for a transfer.
The location of witnesses in Florida is deemed irrelevant to the current declaratory judgment suit. The court concludes that transferring the case to the Middle District of Florida would not serve the interests of justice or judicial economy, particularly since the pending state court action cannot be consolidated with the federal action. The plaintiff initiated this action before any related Florida cases were filed regarding the SEA TOW 6 accident. As a result, the defendant’s motion to transfer venue is denied. Additionally, all discovery must be completed by July 25, 1995, unless good cause is shown otherwise. No party may request a pre-motion conference or file a dispositive motion after August 25, 1995, unless good cause is demonstrated. If no dispositive motions are made, legal memoranda are due by September 25, 1995, and proposed findings of fact and conclusions of law, along with a joint pre-trial order, are due by October 9, 1995, in accordance with the court's Individual Rules.
