Fire Photo: Shutterstock.com

A federal judge in Orlando refused to dismiss a case filed by an insurance company against a ship parts maker over damage caused by a boat fire.

In 2014, a fire severely damaged the E=Mc2. When the fire occurred, the vessel was owned by Eric Slifka and insured by Ace American Insurance Co. When Slifka purchased the vessel, it included a bow thruster that had been installed by Florida Bow Thrusters Inc. A bow thruster is an auxiliary propulsion device in the bow of a ship that helps maneuvering.

After the fire, Ace paid Slifka for the property damage and as Slifka's subrogee sued several parties involved in the manufacture and sale of the vessel. An expert retained by Ace determined the bow thruster was the likely origin of the fire.

After related litigation was settled in Massachusetts, ACE filed suit in Florida against Florida Bow Thrusters on negligence, indemnification and contribution claims. The Merritt Island-based maritime company filed a claim seeking dismissal of the case.

Florida Bow Thrusters argues the counts in the litigation included legal conclusions that were not backed by factual allegations. The court found that, although that might be true, Florida Bow Thrusters failed to provide any examples of those legal conclusions or areas where the required factual allegations were lacking.

The motion to dismiss the case was denied Monday by U.S. District Judge Gregory Presnell.

The case is Ace American Insurance v. Florida Bow Thrusters, Case No: 6:17-cv-1056-Orl-31GJK, 2020 U.S. Dist. LEXIS 1346 (M.D. Fla. Jan. 6, 2020).

Hannah Smith reports for the Insurance Coverage Law Center.