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Promissory Warranty Must Be Fulfilled\\nRalph Young owned and lived on a seventy-four-foot motor operated vessel\\n named the SUMMER STAR (\\u201cthe vessel\\u201d). Mr. Young insured the vessel with\\n Yachtinsure Services, Inc. from 2013 through 2019. \\n\\nAs a result the USDC was asked to resolve an issue of the voidability of\\n a marine insurance policy under principles of federal maritime law. \\n\\nIn Transpac Marine, LLC v. Yachtinsure Services, Inc., Civil Action No. \\n20-10115-DPW, United States District Court, D. Massachusetts (February \\n13, 2023) followed the precedent establishing the inviolability of a \\npromissory warranty.\\n\\nBACKGROUND\\n\\nMr. Young\'s Renewal Application\\n\\nOn April 16, 2019, Mr. Young applied for the renewal of his marine \\ninsurance policy to Yachtinsure to renew his existing policy, Mr. Young \\nwas obligated to submit an updated application form and a Hurricane Plan\\n for review by Yachtinsure\'s underwriters.\\n\\nThe Hurricane Plan included a warranty by Mr. Young that the vessel will\\n be secured with \\u201c10 lines, 3/4 inch Nylon braid.\\u201d The applicant was \\nwarned that the Hurricane Plan contains \\u201cstatements upon which \\nunderwriters will rely in deciding to accept this insurance\\u201d and that \\nthe Hurricane Plan \\u201cwill form the basis of\\u201d any insurance contract \\nbetween the parties.\\n\\nAfter an inquiry from the insurer Mr. Young confirmed that in the event \\nof a named/numbered storm, mooring lines will be doubled.\\xa0 Mr. Young\'s \\nemail representation that he would double the mooring lines on the \\nvessel in the event of a named windstorm was incorporated into his \\npolicy agreement with Yachtinsure.\\n\\nEvents Preceding the Destruction of the Vessel\\n\\nDuring an examination under oath conducted by Yachtinsure Mr. Young \\ntestified he decided to sail to Crown Bay in St. Thomas, U.S. Virgin \\nIslands where the storm was expected to pass with windspeeds below \\nthirty-miles-per-hour. Mr. Young resolved to wait out the storm.\\xa0 On \\nAugust 26, he purchased two, new, one-inch diameter mooring lines from \\nthe local chandlery in preparation for the storm. Beyond securing the \\nvessel with those two additional mooring lines and moving upholstery \\nbelow deck, Mr. Young made no further safety preparations. \\n\\nJust after noon, high winds from Hurricane Dorian parted Mr. Young\'s \\nmooring lines, causing the vessel to drift out to sea. However, the \\nanchor\'s chain became entangled with a sailboat operated by a \\nthird-party mariner, Dan Radulewicz. \\n\\nPlaintiff\'s Claim and Defendant\'s Denial\\n\\nMr. Young filed a claim declaration with Yachtinsure on September 3, \\n2019.\\n\\nDISCUSSION\\n\\nThe court found the Hurricane Plan to be unambiguous. \\n\\nMr. Young responded to the Hurricane Plan with what is, in essence, a \\nstipulation that he would secure the SUMMER STAR with the mooring \\nconfiguration he identified when the policy took effect and during its \\ncontinuance. Thus, this provision of the Hurricane Plan constitutes an \\nunambiguous promissory warranty to secure the SUMMER STAR with ten nylon\\n mooring lines that were 3/4 inch diameter in normal circumstances \\n(i.e., in the absence of a named or numbered storm) and with 20 in a \\nnamed and numbered storm.\\n\\nConsequences of Breach of Promissory Warranties\\n\\nUnder both federal law and New York law, a breach of a promissory \\nwarranty will permit the insurer to void a marine insurance contract. \\nSimply material compliance will not satisfy the insured\'s obligations. \\n\\nPlaintiff\'s Breach\\n\\nThe court concluded that Yachtinsure established beyond reasonable \\nfactual dispute that Mr. Young failed to meet his obligation of strict \\ncompliance with his warranties under the Hurricane Plan.\\n\\nMr. Young\'s admission that he did not use twenty 3/4 inch nylon braid \\nlines to secure his boat during Hurricane Dorian - and thereby satisfy a\\n prophylactic condition the policy called for - is sufficient to prevent\\n him from recovering under the policy.\\n\\nSummary judgment granted to Yachtinsure.\\n\\n(c) 2023 Barry Zalma & ClaimSchool, Inc.