Justices Side With Insurers in Rare Fight Over Yacht Policy

The US Supreme Court ruled in favor of a Munich Re unit against a Pennsylvania yacht owner in a marine insurance dispute, emphasizing the need for predictability in maritime contracts.

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

“Choice-of-law provisions in maritime contracts are presumptively enforceable under federal maritime law, with narrow exceptions not applicable here,” the Supreme Court held in a unanimous opinion on ...