The Garamendi Amendment: How Four Words Changed the Entire Offshore Wind Industry in America - American Bar Association
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Summer 2021 COMMITTEE NEWS Admiralty and Maritime Law The Garamendi Amendment: How Four Words Changed the Entire Offshore Wind Industry in America In January of 2021, four words, including non-mineral energy resources, flipped the entire offshore renewable energy market on its head.1 Offshore wind will be a significant part of the future of American energy, and it has the potential to harness almost double the power needed to feed the nation’s electricity grid. 2 America has one operational wind farm off the coast of Rhode Island, powering the 1000 resident community of Block Island.3 This lone wind farm should morph Jessie Elizabeth Shifalo into a $70 billion industry in the United States by 2030.4 If companies are not required to use American supplies, shipyards, and workers to make that happen, Jessie Elizabeth Shifalo is a student at Tulane Law School, Class of 2022. it becomes a $70 billion industry that offers its benefits abroad. While offshore oil Jessie Elizabeth can be reached at exploration in the U.S. is currently at a standstill, and our economy struggles to jessie.elizabeth.shifalo@gmail.com. survive a pandemic, the country’s offshore industry could certainly use the boost from this developing market. Editor’s Note: Jessie’s article was selected as the winner of the 2021 America’s lawmakers addressed this by requiring offshore renewable energy ABA TIPS AMLC law student writing installations to be constructed and serviced by American-built and crewed ships competition held in conjunction with Read more on page 26 Gard N.A. In This Issue • The Garamendi Amendment: How Four Words Changed the Entire Offshore... 1 • Chair Message 4 • Editor Message 6 • The Domino Effect: the Dutch Shell Ruling and the Rest of the World 8 • Trade Talk – Colleen Patterson 9 • The Jones Act: An Obstacle to Offshore Wind Production in the U.S. 13 • Expect the Unexpected: An Analysis of Whether COVID-19 is a... 14 Uniting Plaintiff, Defense, Insurance, and Corporate Counsel to Advance the Civil Justice System
Admiralty and Maritime Law Summer 2021 Leadership Roster Chair Membership Daniel Bentson Christopher Hamilton Aaron Greenbaum Vice-Chair Bullivant Houser Bailey PC Shutts & Bowen Pusateri Johnston Guillot & 925 4th Ave, Ste 3800 4301 W Boy Scout Blvd, Ste 300 Chase Jansson Seattle, WA 98104-1129 Tampa, FL 33607 Greenbaum Campbell Johnston Clark LLP 1100 Poydras St, Ste 2250 (206) 292-8930 (813) 229-8900 2600 Douglas Road, Ste 508 dan.bentson@bullivant.com Fax: (813) 227-8211 New Orleans, LA 70163-2300 Miami, FL 33134 (504) 620-2500 chamilton@shutts.com (786) 473-0810 aaron.greenbaum@pjgglaw.com Chase@CJCLaw.com Peter Black Mills Black LLP Grady Hurley Chair-Elect 1215 19th St NW Jones Walker LLP Plaintiff Washington, DC 20036 201 Saint Charles Ave, 48th Fl Juliette McCullough Vice-Chair (646) 902-1773 New Orleans, LA 70170-1000 Peacock Piper Tong + Voss LLP pblack@millsblack.com (504) 582-8224 100 West Broadway, Ste 610 Jessica Ibert Lewis Kullman Sterbcow Fax: (504) 589-8224 Long Beach, CA 90802 ghurley@joneswalker.com (415) 398-6000 & Abramson David Boyajian Juliettebwhite@gmail.com 601 Poydras St, Ste 2615 Schwabe Williamson & Wyatt New Orleans, LA 70130 1211 SW 5th Ave, Ste 1900 James Koelzer (504) 262-8345 Portland, OR 97204 Clyde & Co LLP Immediate Fax: (504) 588-1514 (503) 796-2943 355 S Grand Ave, Ste 1400 Past Chair jibert@lksalaw.com Fax: (415) 227-4255 Los Angeles, CA 90071 Stephanie Penninger dboyajian@schwabe.com (213) 358-7620 XPO Logistics Inc Scope Liaison Fax: (310) 229-5800 11215 N Cmnity Hse Rd, Fl 9 Philip Brickman James.Koelzer@clydeco.us Zachary Rubinich Charlotte, NC 28277-4960 Rawle & Henderson LLP Degan Blanchard & Nash (704) 323-7647 1339 Chestnut St, 16th Fl 400 Poydras St, Fl 26 Max Malvin Fax: (312) 767-9192 Philadelphia, PA 19107 New Orleans, LA 70130-3245 643 Magazine St, Ste 405 Stephanie.Penninger@xpo.com (215) 575-4340 (504) 529-3333 New Orleans, LA 70130-3433 Fax: (215) 563-2583 Fax: (504) 529-3337 (504) 323-5885 Council zrubinich@rawle.com pbrickman@degan.com maxmalvin@gmail.com Representative, Michael Daly Jessica Martyn Newsletter Editor Social Media Pierce Atwood LLP Link Martyn PLLC Christopher Nolan Vice-Chair, 1 Financial Plz, Fl 16 1407 S Leithgow Terrace Holland & Knight LLP Technology Providence, RI 02903-2485 Philadelphia, PA 19147 31 W 52nd St, Fl 11 Vice-Chair (401) 588-5113 (757) 6154753 New York, NY 10019-6111 jmartyn@linkmartyn.com (212) 513-3307 Allison Skopec Winston & Strawn LLP Robert Gardana Fax: (212) 341-7237 Robert L Gardana PA David McNeal chris.nolan@hklaw.com 200 Park Ave, #40 New York, NY 10166-0005 12350 SW 132nd Ct, Ste 204 McNeal Law Group PLLC (212) 294-3278 Miami, FL 33186-6458 2950 North Loop W, Ste 500 Diversity askopec@winston.com (305) 358-0000 Houston, TX 77092-8830 Vice-Chair Fax: (305) 358-1680 (832) 819-3281 robert@gardanalaw.com dmcneal@mcneallawgroup.com Jeanne Amy Vice-Chairs Jones Walker LLP Kirby Aarsheim 201 Saint Charles Ave, Fl 48 Danielle Gauer Matthew Moeller Farrell Smith O’Connell LLP M G & M Law Firm Moeller Firm LLC New Orleans, LA 70170-1000 27 Congress St, Ste 109 (713) 437-1800 600 Brickell Ave, Ste 1400 650 Poydras St, Ste 1207 Salem, MA 01970 Miami, FL 33131-3068 New Orleans, LA 70130-7215 jamy@joneswalker.com (617) 508-9891 (305) 537-3422 (504) 702-6794 kirbyaarsheim@gmail.com dgauer@mgmlaw.com matthew@moellerfirm.com Law Student Vice-Chair Yaakov Adler Sarah Gayer Jeanne Noonan Holli Packer Freehill Hogan & Mahar Llp Thompson Bowie & Hatch LLC Willcox & Savage 2301 Joseph St 80 Pine Street, 25 Fl PO Box 4630 440 Monticello Ave, Ste 2200 New Orleans, LA 70115-6513 New York, NY 10005-1759 Portland, ME 04112-4630 Norfolk, VA 23510 (201) 873-4244 (212) 381-3026 (207) 774-2500 (757) 628-5554 hpacker@tulane.edu Fax: (212) 425-1901 Fax: (207) 774-3591 jnoonan@wilsav.com adler@freehill.com sgayer@thompsonbowie.com americanbar.org/tips 2
Admiralty and Maritime Law Summer 2021 Leadership Roster | continued Pamela Palmer Catherine Saylor Sarah Sweet Christine Walker Clark Hill PLC Munch & Munch, P.A. Borden Ladner Gervais LLP Fowler White Burnett PA 1055 W 7th St, Ste 2400 600 S Magnolia Ave Ste 325, Bay Adelaide Centre East Tower 1395 Brickell Ave, Fl 14 Los Angeles, CA 90017-2550 Tampa, FL 33606-2764 22 Adelaide St W Miami, FL 33131 (213) 417-5168 (813) 2541557 Toronto, ON M5H4E3 (305) 789-9217 Fax: (213) 488-1178 casey@munchandmunch.com (416) 367-6590 cwalker@fowler-white.com ppalmer@clarkhill.com ssweet@blg.com Kelly Scalise Stephanie Propsom Liskow & Lewis Douglas Truxillo *Former Chairs of TIPS AMLC 826 N Duluth Pl 701 Poydras St, Ste 5000 Onebane Law Firm Sturgeon Bay, WI 54235-2959 1 Shell Sq PO Box 3507 (920) 743-5020 New Orleans, LA 70139 Lafayette, LA 70502 stephanie.propsom@hotmail.com (504) 299-6110 (337) 2372660 Fax: (504) 556-4108 Fax: (337) 266-1232 Ann-Marie Roach ktscalise@liskow.com truxillod@onebane.com Gard (North America) Inc. 40 Fulton Street, 16th Floor Katriel Statman Raymond Waid New York, NY 10038 Baker Donelson Liskow & Lewis (646) 8125644 1301 McKinney St, Ste 3700 701 Poydras St, Ste 5000 ann.marie.roach@gard.no Houston, TX 77010 New Orleans, LA 70139-5000 (713) 210-7443 (504) 581-7979 kstatman@bakerdonelson.com rwaid@liskow.com ©2021 American Bar Association, Tort Trial & Insurance Practice Section, 321 North Clark Street, Chicago, Illinois 60654; (312) 988-5607. All rights reserved. The opinions herein are the authors’ and do not necessarily represent the views or policies of the ABA, TIPS or the Admiralty and Maritime Law Committee. Articles should not be reproduced without written permission from the Copyrights & Contracts office (copyright@ Connect with americanbar.org). Admiralty & Maritime Law Editorial Policy: This Newsletter publishes information of interest to website members of the Admiralty and Maritime Law Committee of the Tort Trial & Insurance Practice Section of the American Bar Association — including Stay Connected reports, personal opinions, practice news, developing law and practice tips by the membership, as well as contributions with TIPS of interest by nonmembers. Neither the ABA, the Section, the Committee, nor the We encourage you to stay up-to-date on important Section news, TIPS meetings Editors endorse the content or accuracy of any specific legal, personal, or other and events and important topics in your area of practice by following TIPS on opinion, proposal or authority. Twitter @ABATIPS, joining our groups on LinkedIn, following us on Instagram, Copies may be requested by contacting and visiting our YouTube page! In addition, you can easily connect with TIPS the ABA at the address and telephone substantive committees on these various social media outlets by clicking on any number listed above. of the links. americanbar.org/tips 3
Admiralty and Maritime Law Summer 2021 Chair Message While some organizations hit the pause button over the past year, this committee pressed forward. No one lamented that many of us have not seen in each in person since October 2019. Rather, we created new opportunities for connecting and learning, relying on the strength of our diverse membership. As always we strive to become a more diverse group and to include new members in productive committee roles immediately. Our success over the past year is owed to the foundation laid by our former chairs. Stephanie Penninger of XPO Logistics, Charlotte, NC, faced the beginning of the Covid-19 pandemic head on and positioned us to thrive during a “virtual” year. Through the hard work of former chair, Robert Gardana, Miami, FL, this committee Aaron Greenbaum Pusateri, Johnston, Guillot & recently published through the ABA, the book Damages Recoverable in Maritime Greenbaum, LLC Matters (2nd Edition). Each month during our Zoom business meeting, we have featured a chapter from the book presented by that chapter’s author or authors. This monthly effort has been spearheaded by our incoming chair-elect, Doug Truxillo, Onebane Law Firm, Lafayette, LA. Former Chair, Christopher Nolan, Holland & Knight, NYC, has led our committee’s effort to introduce an ABA resolution in support of ratification of the United Nations Convention on the Law of the Seas. The work and planning of our incoming chair, Juliette McCollough, Peacock Piper Tong + Voss LLP, San Francisco, CA, has been crucial to our committee having some amazing and groundbreaking accomplishments over the past year. • On November 10, 2020, Jeanne Amy of Jones Walker, New Orleans, LA, introduced and Christopher Nolan moderated our first ever Diversity and Inclusivity Webinar Roundtable, focusing on racial diversity with a fantastic panel of practitioners and in-house counsel. The panelists addressed their paths into the maritime industry, their career experience in different sectors of legal practice, and how the maritime industry should take meaningful steps to encourage greater racial diversity and equality. • On November 17, 2020, Christopher Hamilton of Shutts & Bowen LLP, Tampa, FL, moderated a Hurricane Loss Happy Hour Webinar, addressing the “Do’s and Don’ts” of handling hurricane related claims and featuring a diverse panel of practitioners, claims managers, marina experts, and surveyors. • On December 3, 2020, AMLC teamed up with the International Animal Law Committee of the ABA International Law Section to present a webinar on Wildlife Trafficking in the Maritime Industry: Risks for Your and Your Maritime Client to be Aware Of. The panel provided background on how americanbar.org/tips 4
Admiralty and Maritime Law Summer 2021 wildlife traffickers use maritime supply chains to facilitate the illegal trade of wildlife and wildlife products globally and what tools are at the disposal of the government to detect and enforce anti-trafficking laws. • In January 2021, Christopher Hamilton and Michael Amy, Deutsch Kerrigan, New Orleans, LA, submitted the AMLC’s annual Recent Developments contribution to the ABA Tort Trial & Insurance Practice Law Journal. • On February 25, 2021, our committee conducted a second Diversity and Inclusivity Roundtable Webinar — Pathways to Practice - Recognizing the Value of Veterans in Private Practice and Public Service. Introduced by Jeanne Amy and moderated by Sean Pribyl, Holland & Knight, Washington, D.C., the program focused on veterans who bring unique attributes to the public and private legal sectors, such as leadership, discipline, and dependability, although a pathway to practice is not always clear. To this end, the amazing group of panelists provided their experiences in finding opportunities in the public and private sector after transitioning from a military career of active duty service. • On March 12, 2021, we held our virtual, standalone CLE program, Admiralty Disruption 2021. Demonstrating our commitment to diversity, every panel and discussion was woman led with a majority of women panelists. Past- chair, Jessica Link Martyn of Link Martyn, PLLC, moderated the panel The Changing Face of Maritime Shipping in the 21st Century: It’s a Woman’s World. Incoming chair, Juliette McCollough, moderated the panel The Business of Shipping in the Next Decade from In-House Counsels’ View: Vaccine or Bust. With an introduction by past-chair, Pam Palmer, Clark Hill LLP, Los Angeles, CA, the keynote address, Marine Insurance at the Tipping Point, was given by Leanne O’Loughlin, Regional Director at Thomas Miller Americas/UK P&I. During social hour, our Social Media/ Tech Vice-Chair, Allison Skopec, Winston & Strawn, NYC, led us through a mixology masterclass where we learned to make “The Disrupter” cocktail. • On June 25, 2021, Allison Skopec proudly announced the winners of the ABA TIPS AMLC + Gard annual Student Writing Competition. First place went to Jessie Shifalo of Tulane University School Law, who wrote a riveting piece on the offshore wind industry in the U.S., with a focus on the Garamendi Amendment. Second place went to Alyssa Lemire of Roger Williams University School of Law, who wrote an engaging piece on offshore wind with a focus on the Jones Act. Third place went to Jean Smith americanbar.org/tips 5
Admiralty and Maritime Law Summer 2021 of Tulane University School of law, who wrote a very topical piece analyzing COVID-19 as a force majeure event in maritime contracts. I can truly say I am honored to have served as the AMLC Chair for the 2020-2021 year. Although the past year has provided us with many challenges, I believe those challenges have only made the bonds among our committee members stronger. I look forward to seeing some of you in Dallas in October 2021 for the TIPS Fall Leadership Meeting, many of you in Baltimore for the TIPS Section Conference in April 2022, and all of you in New Orleans for Admiralty Disruption 2023. Editors Message It is our pleasure to present the TIPS AMLC Spring / Summer 2021 Newsletter. This is a double issue due to the packed content we have. The law student writing competition winner and runners-up pieces are worthy of your time. Separately, an important look at a foreign court ruling that can have impact in the US is presented by new member Cynthia Olawu. Our Trade Talk piece features Colleen Patterson at Liberty Mutual for a wide ranging discussion. We are currently looking for submissions for the next newsletter, and encourage Chris Nolan committee members and non-members alike to submit article proposals directly to Managing Editor us at chris.nolan@hklaw.com; CHamilton@shutts.com; and Laura B. Knoll LKnoll@ amrl.com. Thank you to the authors who have contributed to this newsletter, and Holland & Knight LLP to the section members for their ongoing efforts in supporting this publication. Phone 212.513.3307 www.hklaw.com Chris Hamilton Laura Beck Knoll Associate Editors americanbar.org/tips 6
Admiralty and Maritime Law Summer 2021 The Tort Trial & Insurance Practice Section Introduces a New Advertising Opportunity! The rates for advertising in this publication are: AD SIZE OPTIONS DIMENSIONS COST 1/4 PAGE 3.625” × 4.625” $650.00 1/3 PAGE 3.625” × 3.0625” $850.00 1/2 PAGE 7.375” × 4.625” $1,250.00 1/2 PAGE ISLAND 3.625” × 9.375” $1,500.00 2/3 PAGE 3.625” × 6.25” $1,800.00 FULL PAGE 8.375” × 10.875” $2,400.00 INSIDE BACK COVER 8.375” × 10.875” $2,750.00 INSIDE FRONT COVER 8.375” × 10.875” $3000.00 BACK COVER 8.375” × 10.875” $3,500.00 Additional information and print/online advertisement opportunities including discount options and complete media kits can be found by reaching out to M.J. Mrvica Associates, Inc., mjmrvica@mrvica.com americanbar.org/tips 7
Admiralty and Maritime Law Summer 2021 The Domino Effect: the Dutch Shell Ruling and the Rest of the World Introduction The decisions of the Dutch Courts in State of the Netherlands v. Stichting Urgenda (2019) (Urgenda Climate Case) and Friends of the Earth Netherlands v. Royal Dutch Shell Plc. (2021) have made Europe the first continent to respond, judicially, to the ensuing global conversation on Climate change.1 By these decisions, their response is that both Government and Private citizens are responsible for the reduction of carbon and greenhouse gas emissions, in line with the Paris Agreement of 2015. Cynthia Tenilola Olowu From the Intergovernmental Panel on Climate Change (IPCC) report of 1990 to the Kyoto Protocol and its Doha Amendment of 1997 and 2012 respectively, to the Paris Cynthia is an Admiralty and Maritime Agreement of 2015, major nations of the world have come together to try to set LLM Candidate at Tulane University Law School, with 3 years’ experience parameters for this concept mankind is gradually starting to get familiar with. as a Maritime Attorney in Lagos, Nigeria. She can be reached As with the creation of any rule of law, several factors play a role. According to at colowu@tulane.edu and on the United Nations2, the rule of law requires measures to ensure adherence to 504.505.4282. the principles of supremacy of the law, equality before the law, accountability to the law, fairness in the application of the law, separation of powers, participation in decision-making, legal certainty, avoidance of arbitrariness, and procedural and legal transparency. The United Nations contend that the Paris Agreement is a legally binding international treaty on climate change, following its adoption by state parties and its entry into force on November 4, 20163. Thus, is it fair to connote that as a legally binding treaty, the provisions of the Paris Agreement be subject to the same parameters of the rule of law? The Suit According to Article 6:162 of the Dutch Civil Code, one of the categories for a claim arise from torts, includes acts/omissions that violate a rule of unwritten law pertaining to proper social conduct. In view of this, variants of the duty of care can arise in this instance – and this was the basis upon which the Friends of the Earth (“Milieudefensie”4) filed this claim against Royal Dutch Shell (“Shell”). In its claim, Milieudefensie contended that Shell had a duty of care, not to negligently endanger the claimants – which consisted of not only the Friends of the Earth, but over 17,000 individual complainants – affected by the current carbon emissions of Shell. The claimants also relied on the fundamental human rights guaranteed by the European Convention on Human Rights and other international conventions, and finally on the provisions of the Paris Agreement and its limits on carbon emissions. In a novel Read more on page 39 americanbar.org/tips 8
Admiralty and Maritime Law Summer 2021 TRADETALK Our quarterly Trade Talk piece features Colleen Patterson, Marine Claims Manager at Liberty Mutual Insurance. Q. Colleen, tell us how you got into or claims handling, it took quite the marine insurance industry? a few interviews and some A. My entrance into the maritime convincing that I was the right field was a funny one, because I did person for the job. Eventually not practice maritime law while in I was offered the position and private practice! I practiced at smaller have been at Liberty Mutual for firms in New Jersey. My specialty over 12 years now working with was representing public entities. I Chris. had some experience with insurance defense, but not a whole lot, mostly in the realm of Q. How was your introduction into claims handling? workers’ compensation defense. Defending public entities A. I still remember it to this day. On my first day as a claims gave me a ton of experience with trial preparation, time handler, I was handed a claims adjuster book (something in the courtroom, and proceeding through trial. However, like “How to Handle Claims”), a form P&I policy, and a form private practice started to wear me out, particularly billing Hull Policy. I said to myself, what the heck is Restraints and constant travel to attend public meetings for my of Princes? I went from knowing nothing about the Jones clients. After 9 years of private practice, I started to look Act to taking a deep dive into learning. The fact that I had around for different types of jobs and one day I received experience in private practice gave me a great perspective a call from Christopher Frick, an attorney who left the on the claims handling process. I would ask why we were firm about a year before. I honestly had no idea what he spending defense costs on filing certain motions, whether was doing after leaving private practice, but he called they were necessary, and why defense costs seemed and asked if I wanted to interview with Liberty Mutual to be exceeding the value of certain claims. I would ask, in its marine claims department. Liberty was looking for “what is the goal?” claims handlers with law degrees. Since I did not have any prior knowledge of marine insurance, maritime law, americanbar.org/tips 9
Admiralty and Maritime Law Summer 2021 Q. Was it difficult to go from private practice to claims handling? A. I had a huge identity crisis when I went from being a practicing litigator to a non- practicing claims handler. I was used to being “out front” defending my clients and I took a lot of pride in that. Now my law licensed is inactive. I still really miss being in the courtroom. The hardest part going from litigating to insurance is the mindset of “is their coverage?” I must remind myself, I am not the attorney and I must rely on my counsel concerning coverage if I question coverage. Although the one thing that did translate well was building a relationship with the brokers and insureds, even though we are getting them on their worst day. Since I worked at a small firm, I was used to being hands on with clients and now get to do the same with claims. Having a good rapport with an insured is probably the most important thing we do as claims handlers, other than adjusting claims. Q. What are some of the biggest differences you have encountered going from private practice at a smaller firm to a corporate setting? A. I had only worked at two small law firms – ten attorneys maximum. When I walked into Liberty Mutual, it was intimidating because I was no longer one of ten, but one of ten thousand. I went from having a secretary and an office to no secretary and a cubicle. As opposed to private practice, I was now in a 9-to-5 job. Nobody cared if I worked past 5 pm, but I had to be present, and at my desk, during those hours. Conversely, in private practice I was rarely at my desk and was rewarded for working long hours. I would say it was 2 to 3 years before I became fully comfortable in a corporate setting. This was also when knowledge of the insurance industry started to click for me. Plus, did I mention that I actually get vacation time now? Q. Can you tell us about some of the biggest challenges you are facing now? A. The business of our insureds seems to be ever-changing. Companies that only performed marine-related contracting work are now doing work on land. For instance, a marine contractor is now dredging inland and laying fiber optic lines. This type of work is really changing the scope of handling claims. Another example is that general liability policies are beginning to cover many different aspects of our insureds’ businesses, like company vehicles and motor vehicle accidents. This is big departure from strictly focusing on marine claims. So we seem to be moving a little bit away from solely marine, and marine general liability policies are becoming a sort of “catch all.” I find that I can’t always be sure what an insured truly does until we get a claim from them. Then I go to our underwriters and say, did you even know they were doing this work?! Another challenge I face is that I still think like a lawyer sometimes and I can’t help but do 2 hours of work on a Sunday. americanbar.org/tips 10
Admiralty and Maritime Law Summer 2021 Q. What are your favorite aspects of the marine insurance industry? A. Truly, no two days are ever alike. This keeps my job very interesting. There is such a big difference between a Jones Act claim and marine general liability claim. I believe people stay in marine claims (and maritime legal practice) because this is a vast, complex, and constantly evolving field. We are still defining terms like “seaman” and “vessel.” Q. What do you look for in outside legal counsel? A. I look for firm that is not going to give us the run around. I ask, what do you think? What is plan? Don’t sugarcoat liability and damages issues. I would rather know we have questionable defenses at the beginning of a matter then find out 2 years later. We have a list of counsel that we use, but not all counsel are great for the same case. Some may be good for a Jones Act personal injury defense, whereas another may be better at handling action-over claims. Overall, I want clear and concise recommendations, as well as education throughout the claim. One of my biggest complaints is when attorneys don’t provide the Motions they have filed. I want to understand the legal aspects of the claim and our arguments. In sum, what did we file and why? Having worked in a law firm, I know this is important. Q. What organizations do you find most useful? A. Other than the TIPS Admiralty and Maritime Law Committee, I find myself always attending seminars put on by the American Institute of Marine Underwriters (AIMU). It is a great source of information for those who work in the marine insurance industry. Benefits of AMLC Membership Opportunities To Become Involved ■ Publication in the AMLC Newsletter ■ Leadership Positions or TIPS Law Journal ■ Mentoring Relationships ■ Networking Opportunities ■ Young Lawyers and Law Student Writing ■ CLE and Webinar Opportunities Competition Additional Information For more information regarding the benefits that membership in the AMLC can provide to you, check out our webpage at http://ambar.org/tipsadmiralty and join our group on LinkedIn. The Committee is open to all, including non-lawyer maritime professionals, law students and lawyers in every practice area who want to keep abreast of developments in the field. americanbar.org/tips 11
Admiralty and Maritime Law Summer 2021 F I N D Y O U R C O M M U N I T Y a m b a r. o r g / t i p s c o n n e c t ambar.org/tipsconnect americanbar.org/tips 12
Admiralty and Maritime Law Summer 2021 The Jones Act: An Obstacle to Offshore Wind Production in the U.S. I. Introduction With the increased call to address climate change, and create energy independence in the U.S., interest in offshore wind has grown. As of December 2020, the Bureau of Ocean Energy Management had issued sixteen commercial leases in the U.S. to offshore wind developers for projects in federal waters.1 Offshore wind energy has the potential to be a significant source of energy for the United States. The wind power in these leases alone totals over 21 gigawatts of potential capacity.2 Alyssa Lauren Lemire, However, construction of offshore wind farms in the U.S. faces a regulatory obstacle. J.D., M.M.A. Specially designed ships called wind turbine installation vessels (“WTIVs”) are Alyssa is a graduate of Roger Williams required for efficient installation.3 Ideally, a WTIV could load wind turbine parts from University School of Law, Class of a port on the U.S. mainland and transport the parts to the location of the offshore 2021. She also holds a Master of wind farm site. Then, the WTIV could construct the wind turbines.4 Unfortunately, Marine Affairs from the University of Rhode Island and a Bachelor of the the Jones Act, a federal law, makes this ideal scenario impossible.5 The Jones Arts in Environmental Studies from Act requires the transportation of merchandise between two points in the U.S. be the University of Rochester. She may transported by vessels which (1) are owned by a U.S. citizen,6 (2) are flagged in be contacted at alemire365@g.rwu. the U.S.,7 (3) were built in the U.S.,8 and (4) seventy-five percent of the seamen on edu.” Editor’s Note: Alyssa’s article was selected as the first runner-up the vessel are U.S.’ citizens.9 The Jones Act specifically prohibits non-Jones Act of the 2021 ABA TIPS AMLC law qualified vessels from transporting “merchandise” between points in U.S. waters.10 student writing competition held in Any WTIV which transports materials for the construction of offshore wind turbines conjunction with Gard N.A. between two points within the U.S. must meet these four requirements.11 There are only fifteen WTIVs in the entire world.12 Out of these fifteen, none meet any of the Jones Act requirements.13 The Jones Act applies to points within the territorial sea of the U.S.14 The territorial sea includes waters adjacent to the U.S. and three miles seaward from the U.S. territorial sea baseline.15 Offshore wind turbines within the territorial sea are “points in the United States” and therefore, the Jones Act applies.16 Whether the Jones Act applied to offshore wind projects outside the territorial seas, e.g., on the outer continental shelf, remained unanswered. On January 1, 2021, the National Defense Authorization Act (“NDAA”) of 2021 was passed into law.17 The NDAA amended Section 4(a)(1) of the Outer Continental Shelf Lands Act of 1953 (“OCSLA”) to extend “United States jurisdiction to devices attached to the seabed of the outer continental shelf (“OCS”) for the purpose of producing non-mineral energy such as wind energy.”18 As a result, it is clear that wind turbines on the OCS qualify as Read more on page 42 americanbar.org/tips 13
Admiralty and Maritime Law Summer 2021 Expect the Unexpected: An Analysis of Whether COVID-19 is a Force Majeure Event in Maritime Contracts and Marine Insurance Policies I. Introduction With over thirty million positive cases in the United States alone,1 and over two million deaths worldwide,2 Coronavirus, or COVID-19, has indisputably made an impact on everyday life. From the introduction of Zoom technology, to travel restrictions, to waiting in line at the grocery store – nothing has been the same since the virus Jean M. Smith spread at the beginning of 2020. The adjustments made to recreational activities also coincide with economic and financial hardships that many individuals have Jean is a student at Tulane University School of Law. She can be reached faced over the past few months. This overall disruption, however, is not exclusive to at jsmith103@tulane.edu. Editor’s one person or industry. The maritime sector has also been affected by COVID-19 Note: Jean’s article was selected as and its subsequent repercussions.3 the second runner-up of the 2021 ABA TIPS AMLC law student writing As more uncertainties spurred by COVID-19 arise, so do the number of claims for competition held in conjunction with contractual non-performance and marine insurance coverage. These claims can Gard N.A. involve shipping delays, warehouse overflow, availability of personnel, and other business interruptions.4 Due to the unprecedented nature of COVID-19, many maritime contracts and marine insurance policies do not account for such claims caused by the pandemic. However, parties, insurers, and policyholders are not totally defenseless, as force majeure and exclusion clauses exist as a performance or coverage “safety net.” Yet, there is some question as to whether COVID-19 is considered a force majeure event in maritime contracts. The answer to this question depends on the interpretation of the clause at hand. In Part II, there will be a discussion of how force majeure and exclusion clauses are interpreted within maritime contracts and marine insurance policies.5 Part III will then discuss whether COVID-19 is a force majeure event and how it has impacted drafting and interpretation of maritime contracts and marine insurance policies. Finally, Part IV will discuss the implications surrounding COVID-19 and its contractual interpretation on the maritime industry. II. Force Majeure and Exclusion Clause Interpretation Both maritime contracts and marine insurance policies comes in many forms. Yet, there is no entrenched federal maritime law regarding contract interpretation. Unless legislation provides otherwise, general maritime contracts as well as marine insurance policies are subject to the same rules that govern contracts generally.6 americanbar.org/tips 14
Admiralty and Maritime Law Summer 2021 Thus, “[a]bsent a specific federal rule, federal courts look to state law for principles governing maritime [contracts and] insurance policies. . .and apply federal maritime choice of law rules to determine which state’s law to apply.”7 A. Force Majeure Clauses Although there are varying descriptions of force majeure depending on the jurisdiction, it is commonly used to refer to an event that is so extraordinary and outside of the parties’ control that performance cannot be rendered.8 “While some courts use ‘act of God’ to refer to the harm caused by natural forces, a larger number seem to use the expression to refer to the natural forces themselves.”9 For instance, severe weather conditions, such as hurricanes, can be classified as “acts of God” and are prevalent examples of a potential force majeure event in the maritime industry. Thus, the damage caused by hurricanes, as well as the hurricane itself, can both be considered force majeure events, depending on the court.10 Regardless of the interpretation of what a force majeure event includes, force majeure clauses can range from “. . .providing for cancellation of the contract in the event that performance is prevented by circumstances comprehended within the term force majeure, to clauses. . .containing. . .a list of excusing events.”11 Courts have often considered force majeure and similar “acts of Gods” when deciding marine contract cases.12 In Lord & Taylor LLC v. Zim Integrated Shipping Services, Hurricane Sandy was held to be both figuratively and legally an “act of God” by the United States District Court for the Southern District of New York.13 There, Lord & Taylor, a known department store chain, contracted with Zim, “a licensed ocean liner carrier,” to transport sweaters and cardigans from Hong Kong to New York.14 Zim leased space aboard another vessel to store the sweaters and cardigans in containers for transport.15 When the containers departed from Hong Kong, they were scheduled to arrive at the New York City container terminal (NYCT) on a weekend, but since the terminal was closed on the weekends, it would be delivered to Lord & Taylor officially on the next week/business day.16 The container terminal was closed on the following business day due to a storm surge linked to Hurricane Sandy.17 A few days later, truckers picked up the containers and delivered them to Lord & Taylor.18 Several hundred cartons of sweaters in the containers were water damaged and consequently destroyed, leaving Lord & Taylor with a loss of over $200,000 in merchandise.19 Deducting the Carriage of Goods by the Sea Act (COGSA) package limitation provision, which was agreed to by the parties, Lord & Taylor’s net loss was approximately $105,000.20 Lord & Taylor sought action against Zim for this remaining amount in damages under COGSA, alleging that the Hurricane was foreseeable and that reasonable precautions were not taken by the container terminal to protect their merchandise.21 americanbar.org/tips 15
Admiralty and Maritime Law Summer 2021 The United States District Court first determined that, in order to “prevail on an Act of God defense under COGSA, a carrier must show that ‘the damage from the natural event could not have been prevented by the exercise of reasonable care by the carrier’.”22 The district court then determined that hurricanes (including Hurricane Sandy), as well as the “unexpected and unforeseeable devastation” that occurs as a result of hurricanes, are “classic case[s] of an ‘Act of God.’”23 However, being an “Act of God” is not sufficient to invoke a force majeure defense, as it must also be determined whether the “weather conditions were foreseeable at the given time and location.”24 Further, there must be an absence of negligence on the part of Zim, determined by whether Zim took “reasonable precautions under the circumstances as known or reasonably anticipated.”25 The district court evaluated the exercise of reasonable care during Hurricane Sandy under three measures. First, the container terminal should have foreseen the effects of Hurricane Sandy, in particular the storm surge, the night before it occurred, as weather forecasts suggested that the storm was incoming, and historically, such hurricanes have had such aftershocks.26 Since the storm surge was foreseeable, the court next looked at whether Zim (and the container terminal) acted reasonably in response to Hurricane Sandy by reviewing multiple proposed options for flood barriers and alternative storage of the containers.27 Finally, the court looked at Hurricane Sandy’s severity, finding that it “exceeded worst-case expectations.”28 The district court ultimately determined that Zim was not liable for Lord & Taylor’s merchandise, as Hurricane Sandy was an “Act of God” with “not reasonably foreseeable” severity and aftereffects.29 Since an unprecedented event needs to be foreseen in some capacity, perhaps the inclusion of a general “catch-all” clause would suffice. However, a drafter must be wary of such a thought. In TEC Olmos, LLC v. ConocoPhillips Co., the First Circuit Court of Appeals held that general “catch-all” provisions included in force majeure clauses must be limited to the other types of force majeure events also listed in the clause.30 There, TEC Olmos and ConocoPhillips Company entered into a farmout agreement31 “to test-drill land leased by ConocoPhillips in search of oil and gas.”32 The agreement established a drilling deadline for TEC Olmos with a consequence of paying $500,000 in liquidated damages to ConocoPhillips if drilling had not begun by that deadline.33 In addition to these terms, the contract included a force majeure clause “list[ing] several events that would suspend the drilling deadline, followed by a ‘catch-all’ provision for events beyond the reasonable control of the party affected.”34 In particular, a force majeure defense could be invoked “. . .by reason of fire, flood, storm, act of God, governmental authority, labor disputes, war or any other cause or any other cause not enumerated herein but which is beyond americanbar.org/tips 16
Admiralty and Maritime Law Summer 2021 the reasonable control of the Party whose performance is affected. . . .”35 After the execution of the agreement, there were changes in the global supply and demand of oil due to oil price fluctuations.36 As a result, TEC Olmos was unable to meet the drilling deadline due to lack of funding and raised a force majeure defense based on the language in the agreement.37 Following the rules of contract interpretation, the First Circuit held that a force majeure defense could not be invoked because gas market fluctuation was not listed as a force majeure event in the agreement, nor could it be included in the general “catch-all” provision.38 The Court of Appeals reasoned that a general “catch- all” provision would be “meaningless” if every unforeseen event or circumstance could be considered a force majeure event, as the clause would always permit nonperformance.39 Further, the Court of Appeals explained that such “catch-all” provisions require some degree of foreseeability, at least in accordance with the other circumstances listed as force majeure events, under the doctrine of “ejusdem generis.”40 “When more specific items in a list are followed by a catch-all “other,” the doctrine of ejusdem generis teaches that the latter must be limited to things like the former.”41 By the doctrine of ejusdem generis, fluctuations in oil market prices are not like any of the other events listed in the force majeure event (e.g., “fire, flood, storm, act of God, governmental authority, labor disputes, [&] war.”)42 Therefore, general “catch-all” provisions following force majeure clauses are not acceptable to permit non-performance alone. Similarly, in Tug Blarney, LLC v. Ridge Contracting, Inc., the United States District Court for the District of Alaska denied a charterer’s motion to dismiss a breach of contract claim due to the constrictive nature of the contract’s force majeure clause.43 There, C&K, a charterer, agreed to transport cargo to various locations throughout Alaska on behalf of Ridge Contracting.44 C&K already had one tug available but purchased another to better carry the cargo across rivers.45 During the voyage, the tug began listing and eventually sunk.46 C&K called the other barge that they had available to perform a salvage mission for the crew and the barge.47 Ridge Contracting asserted that C&K breached their contract by not maintaining the tug properly, while C&K alleged their performance is excused under force majeure.48 The district court reasoned that the force majeure clause found in the Charter Agreement is “limited to specific events” and cannot be read more broadly because the language of the agreement does not imply events beyond what is listed.49 Thus, the “unexplained sinking” of the tow does not “qualif[y] as an act of God under the force majeure clause” in the agreement.50 Although the events that occurred were certainly unexpected, the nature of the act, or its classification as “an act of God,” was not the decisive factor. Instead, the language of the clause, specifically what americanbar.org/tips 17
Admiralty and Maritime Law Summer 2021 was listed as a force majeure event within the agreement, determined whether a force majeure event could be invoked.51 A force majeure event will always be unforeseen, unexpected, and outside of the parties’ control. However, the foreseeability factor, although essential to the concept, is not determinative of the legal outcome.52 Instead, the language of the contract or agreement determines whether the force majeure event is excusable. An event can be unexpected and beyond the parties’ control, but if it was not listed within the language of the force majeure clause in the agreement, it does not excuse non-performance.53 Moreover, a general “catch-all” provision cannot be included in a force majeure clause, as that defeats the purpose of listing specific force majeure events and would provide for an excuse of non-performance in almost any circumstance.54 Finally, a force majeure event itself cannot just be unexpected, as the foreseeability of the severity of its aftereffects must also be taken into account.55 B. Exclusion Clauses Exclusion clauses are similar to force majeure clauses as both define risks that permit nonperformance.56 These exclusions are not necessarily force majeure events. An exclusion clause could include any event, foreseen or otherwise, so long as it was agreed to while drafting the contract. For example, in a charter party, there are a variety of possible exclusions, including trading limits and permitted cargo aboard a vessel.57 In marine insurance policies, “wear and tear” and an inherent vice of particular cargo are possible exclusions that would exempt the insurer from liability.58 None of these exclusions would be considered “acts of God.” In general, exclusion clauses are more likely to be found in the marine insurance context, as they “define the risk which the insurer is prepared to accept by way of the insurance contract.”59 The scope of the clause will be defined to some degree, as insurers would likely not agree to the coverage otherwise.60 In general, “[e]xclusion clauses appear in all the main Institute clauses,” in “both the general clauses and the war and strikes clauses.” 61 In American Institute Hull Clauses Form No. 1.16-1, for example, under the “War, Strikes, and Related Exclusions” section, the policy outlines specific events when the insurer will not cover loss or damage. Such events include “[c]apture, seizure, arrest,” “Civil war, revolution, rebellion,” and “[h]ositilies or warlike operations.”62 Thus, exclusion clauses, though drafted with specificity, can cover a broader range of events than force majeure clauses. III. COVID-19 as a Force Majeure Event COVID-19 is unquestionably a figurative force majeure event. This particular pandemic was unforeseeable and beyond anyone’s control, let alone parties to a americanbar.org/tips 18
Admiralty and Maritime Law Summer 2021 contract. There was no warning nor preparation for this pandemic, especially since the last pandemic occurred over one hundred years ago.63 In general, pandemics are arguably more foreseeable or “known,” just because there have been pandemics and similar communicative diseases in this past. However, this is a very distant past, and COVID-19 is of a much different magnitude. Despite this classification of whether COVID-19 is a figurative force majeure event, the main inquiry is whether it is legally a force majeure event that excuses non-performance or coverage. Courts are generally unwilling to add outside or supplementary language while interpreting a maritime contract, thus encouraging strict interpretation of the contract.64 Understandably, there is a need for the strict interpretation of maritime contracts and marine insurance policies. The courts do not want to write contracts on behalf of the parties and parties should not be able to avoid liability for lack of performance based on an overly broad clauses.65 However, the problem with strict interpretation (and the need for “some” foreseeability concerning force majeure) is that some events, such as COVID-19, fall into an ambiguous “in-between.” There are certain events that no one can expect or foresee, hence the need for force majeure (and certain exclusion clauses). However, for a force majeure clause to be invoked (and an excuse of non-performance to be granted), the listed events in the force majeure clause need to be foreseen and specified to some degree. Otherwise, courts will not “read in” the unexpected event, consequently refusing to excuse non- performance or grant coverage. COVID-19 should be an excused force majeure event, at least in its “early stages.” When the COVID-19 outbreak began, no one anticipated that a yearlong lockdown and quarantine period would follow. It was perceived as another international news headline, “far away” from those in the United States. For the first few months of 2020, with social distancing, mask mandates, government shutdowns, and travel restrictions, there was no option for most maritime contracts to proceed as planned. It could not have been a foreseen event, nor presented known risks. However, COVID-19 became more “anticipated” a few months into 2021. The subsequent risks associated with COVID-19, being social-distancing, travel restrictions, etc., are now known and even expected. There was a global adjustment to COVID-19. This adjustment does not mean that the disease cannot mutate, or another wave of increased cases could not happen, but just that COVID-19 and its aftereffects are more established now than they were in 2020. COVID-19 as a figurative force majeure event still stands. However, COVID-19 presents more “known” risks now and would unlikely be considered an excusable force majeure event, especially as the year progresses. americanbar.org/tips 19
Admiralty and Maritime Law Summer 2021 Even if COVID-19 is declared a figurative force majeure event, courts will likely compare interpretation of the pandemic to that of hurricanes. Hurricanes, although much more frequent than pandemics, are similar in the sense that they are unforeseen and produce unanticipated consequences (such as damage, flooding, delay, etc.). In Lord & Taylor, the United States District Court for the Southern District of New York emphasized that, when determining a force majeure event, it is not only about whether an event is figuratively a force majeure event. Since hurricanes are obviously force majeure events, the district court looked further, considering if the hurricane’s “weather conditions were foreseeable at the given time and location,” and if “reasonable precautions” were undertaken and anticipated.66 If the severity of the hurricane “exceeded worst-case expectations,” then it was an excusable force majeure event.67 Despite there being no “weather conditions” associated with pandemics, the analysis can still be likened to COVID-19. Unlike hurricanes, which involve standard practices and preparation techniques, such protocol did not exist for pandemics, let alone COVID-19. Moreover, even if there was some semblance of a pandemic plan, individual governments and countries also made decisions as a result of COVID-19 that impacted performance, far beyond the control of individual parties. The severity of COVID-19, especially for the first few months of the outbreak, far exceeded any “worst-case expectations.” Accordingly, there is a temptation for COVID-19 to be considered an excusable force majeure event. It seems unfair to any party or insured person seeking coverage to be denied excuse on account of something this vast and unpredictable. COVID-19 grossly impacted all facets of maritime life and industry. However, beyond the beginning stages of the outbreak, it is now a more established pandemic, with more anticipated risks. Thus, COVID-19, except for its inception, and its subsequent repercussions, are not considered excusable force majeure events, as courts are not inclined to “read” pandemic into the language of a contract or clause. Moreover, even if the beginning of COVID-19 falls within the definition, there would still be problems posed if the language of the force majeure clause did not allude to or include the term “pandemic.”68 With respect to exclusion clauses, a pandemic could be excluded, mainly because any event can be so long as it is specifically written in the clause. There is less of a foreseeability component with exclusion clauses due to this intentional specificity. Yet, the current interpretation of force majeure in case law as an “unforeseen event” that has to be foreseen in some way begs the question of whether there is a true difference between force majeure and exclusion clauses. Both are interpreted the same way by the courts, within the confines of the language of the clause in the contract. If everything needs to be predicted to some degree, little will qualify as a true force majeure event. No exclusion clause prior to 2020 excluded “COVID-19,” americanbar.org/tips 20
Admiralty and Maritime Law Summer 2021 but perhaps, some exclusion clauses discussed pandemics or other communicative diseases. Nonetheless, exclusion clauses are read even more strictly than force majeure clauses because they are intended to be hyper-specific and explicitly drafted by the parties. IV. Implications on the Maritime Industry Regardless of whether COVID-19 is interpreted as an excusable force majeure event, this pandemic has undeniably impacted the maritime industry.69 It has hindered shipping practices, halted trade business, and interfered with crew safety and the general maintenance of vessels.70 Since COVID-19 has made such a significant impression, maritime contract and marine insurance policy drafting will evolve, especially since “[t]his will not be the last pandemic that renders performance more difficult than anticipated.”71 Even if the next pandemic is a hundred years from now, the aftereffects of COVID-19 have certainly shocked individuals and businesses into extensive preparation for the future. In forthcoming maritime contracts, for example, the term “pandemic” will likely be included either in a force majeure or exclusion clause.72 Further, any general “catch-all” provisions following a specified list of force majeure events (especially a list including the term “pandemic”) will be interpreted within the meaning of the list, allowing for other communicable diseases, such as epidemics, to also excuse non-performance.73 These changes in future contractual language will broaden coverage or excuse for non-performance under a force majeure clause. However, this broadening only extends so far as the language of the clause itself. Moreover, if pandemics begin to be compared with natural disasters, such as hurricanes, in terms of contractual interpretation, the foreseeability of the actual event will matter less than the foreseeability of the repercussions of said event.74 In the beginning stages of COVID-19, many subsequent decisions regarding quarantine and government shutdowns were completely new. However, as time progressed, more aftereffects related to COVID-19 were anticipated, especially to prevent the spread of the disease. Thus, these unprecedented, successive circumstances will also contribute to the creation and interpretation of new or revised force majeure and exclusion clauses. In addition to adding “pandemic” to certain maritime contracts, some marine insurance providers have already drafted clauses, or “wordings,” reacting to COVID-19. For example, Lloyd’s Market Association has recently published two exclusion clauses specific to COVID-19, LM5391 and LM5392.75 LM5391, drafted in March of 2020, states that the insurance policy in question “does not cover any claim in any way caused by or resulting from: a) Coronavirus disease (COVID-19); b) Severe acute americanbar.org/tips 21
Admiralty and Maritime Law Summer 2021 respiratory syndrome coronavirus 2 (SARS-CoV-2); c) any mutation or variation of SARS-CoV-2; d) any fear or threat of a), b) or c) above.”76 This is a tailor-made exclusion drafted to not only minimize loss from COVID-19, but any subsequent mutation of the disease as well as “threats” caused by the disease. As an exclusion clause, this encompasses specific language pertaining to COVID-19 coverage. It also manages to be broad enough to include any subsequent repercussions of COVID-19. Unlike a force majeure clause, this exclusion clause can be drafted in such a manner. The loss-minimization in LM5391, however, benefits the insurer. A similar decision was made in response to Hurricane Katrina, as insurance companies paid a significant amount of money to cover their clients and wanted to limit their liability to avoid future costs related to hurricanes.77 Insurers will want to cover, or pay, less, therefore, will agree that COVID-19 is an inexcusable force majeure event. However, it would be unwise if insurers suddenly excluded COVID-19 and its subsequent repercussions from marine insurance policies altogether. Marine insurance can best be compared to a marketplace, where the insurers are the sellers and the insured are the buyers. As with any business, the sellers must appeal to the buyers in order to earn a profit, thus, market a saleable product. If the sellers suddenly begin to become too exclusive or produce an unsaleable product, this will make their product unattractive to buyers. One of the main selling points of insurance generally is to protect the insured from the impossible and unknown.78 No one will buy protection if it is not there. Insurers need to take some risks if they want to get business, let alone make a profit. Thus, if insurers chose to use LM5391 without alteration, for example, they may lose potential customers who desire more guaranteed coverage. This marketplace analogy works more for commercial insurers than it does for P&I Clubs. Unlike standard homeowner’s insurance, there is more “diversity” in marine insurance in terms of choosing between commercial insurers and P&I Clubs. Although P&I Clubs only offer protection and indemnity coverage (unlike commercial insurers), the Clubs have more freedom when adjusting their Rules. Commercial insurers have more to face with adjusting policy language than P&I Clubs do. Regardless of the insurer or the type of insurance, COVID-19, or pandemics generally, will certainly be added to future marine insurance policies and club rules. V. Conclusion Force majeure and exclusion clauses add a necessary level of assurance to any maritime contract. However, this assurance is restrained. The interpretation of force majeure events has evolved from considerations of foreseeability to strict americanbar.org/tips 22
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