Justices Lean Toward Insurers in Rare Fight Over Yacht Policy

The US Supreme Court appears poised to rule for a Munich Re unit that denied a yacht owner’s insurance claim after the boat was grounded, with justices emphasizing the need for predictability in maritime insurance contracts.

The case revolves around a provision in Raiders Retreat Realty Co.’s policy with Great Lakes Insurance SE. The contract said federal admiralty law would be used to resolve any disputes, with New York state’s insurer-friendly law serving as the backup.

Courts can refuse to apply a choice-of-law clause in a contract when the clause violates public policy. The central question in the case is ...