Bad Faith Blog

Summary: Mark Twain, a cement barge owned by Continental Cement, sank on February 7, 2011. After the insurance companies investigated, they denied coverage for the loss of the hull and the expense of removing the barge from the river. The insurance companies filed a declaratory judgment action seeking a declaration of no coverage which drew a counterclaim for breach of contract and vexatious refusal to pay. The district court agreed with the insurers that Continental Cement had a maritime insurance law duty of utmost good faith. After a jury trial which returned a verdict in favor of the insurance companies, Continental Cement appealed to the 8th Circuit which affirmed the district court judgment.