FI LED U. S . COURT OF AP PE ALS E L E V E N T H C IR C U IT Febr uar y 2, 2007 T HOM AS K. KAHN CL E RK [ DO NO T P UB L I S H] I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 06- 13100 N on -A rgum entC al endar

________________________ D . C. D o c k e tN o . 0 3 - 6 0 7 4 8 - CV - A SG T I M O T H Y F E N B Y , P la in tif f - C o u n te r - D e f

e n d a n t, M A R Y A N N E F E N B Y , h is w if e , P la in tif f , v ersu s M /V T H R E E D O F G U E RN S E Y , h e re n g in e s , ta c k le , ap p a r e l, f u rn itu r e , e q u ip m e n t a nd a l l othe rappurt e na nc e s the r e t o appe rt a i ni ng a n d b e lo n g in g , D e f e n d a n t- T h ir d - P a rty - P la in tif f , B U R L E Y M A R I N E L I M I T E D , aG u e rn s e y c o rp o r a tio n , T h ir d - P a rty - P la in tif f - C o u n te r - C la im a n t- A p p e lla n t,2 v ersu s C E R T A I N U N D E R W R I T E R S A T L L O Y D 'S L O N D O N , s u b s c r ib in g to P o lic y N u m b e r0 2 Y P 0 2 1 6 , T h ir d - P a rty - D e f e n d a n t- A p p e lle e , C A B L E M A R I N E , I N C ., aF lo r id ac o rp o r a tio n , e t a l., T h ir d - P a rty - D e f e n d a n ts .

________________________ A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f orthe S outhe rn D i s tr i c tof F l or i da

_________________________ ( F e b r u ar y 2, 2007) B efo re B IR C H , D U B IN A an d P R Y O R , C i rcu i tJu d g es. P E R C U R I A M: B ur l e y M a r i ne L i m i t e d, ow ne rof ay a c ht , appe a l s the de c l a r a t oryj udgm e nt e nt e r e d i n f

a vorof C e rt a i n U nde rw r i t e r s a tL l oy d’ s L ondon tha tde ni e d the e xi s t e nc e of

c ove r a ge , unde rac ontr a c tof m a r i ne i ns ur a nc e . B ur l e yM a r i ne ow ns the M /V T hr e e D of

G ue rns e y , w hi c h w a s i ns ur e d byL l oy d’ s w he n i tr a n a gr ound in F t. L au d e r d a le , F lo r id a , in A p r il 2 0 0 3 . T h e T h r e e D w a s ta k e n f o rr e p a ir s to3

C ab le M a r in e , w h e r e T im o th y F e n b yw a s in ju r e d w h ile w o rk in g o n th e y a c h t. B ur l e y M a r i ne s oughtade c l a r a t oryj udgm e nttha tthe i ns ur a nc e pol i c yon the T h r e e D r e q u ir e d L lo y d ’s to p a y f o rth e r e p a ir s to th e y a c h t a n d d e f e n d ala w s u it brou gh tby T i m othy F enby and h i s w i fe . A ft era bench tri al , the di stri ctcourt e n t e r e d j u d g me n ti n f

a v o ro f Ll o y d ’ s . W e a f

f i rm. T he re l evantfa ct s are t aken from the fi nd i ng s of the di stri ctcourt . O n M ay 23 , 20 02 , L l oyd’ s i ss ued an i nsurance pol i cyon the T hree D thatprov i ded c o v e r a g e f

o ro n e y e a r , a n d th a t p o lic yc o n ta in e d tw o c lau s e s r e le v a n t to th is appe a l . F i r s t , the pol i c y l i m i t e d c ove r a ge t o c e rt a i n na vi ga t i ona l l i m i t s , s ubj e c tt o a

“ he l d c ove r e d” c l aus e : “ M e di t e rr a ne a n W a t e r s . . . orhe l d c ove r e d a tr a t e a nd te rm s to b e a g r e e d s u b

je c t to n o tic e b e in g g iv e n a s s o o n a s p r a c tic ab le .” A “h e ld c ove r e d” c l aus e pr ovi de s c ove r a ge i n c e rt a i n c i r c um s t a nc e s w he n abr e a c h of w arranty occ urs. H i l t on O i l T ransp. v. Jonas, 75 F . 3d 62 7, 62 9-30 (11th C i r. 19 96 ). S ec on d, the po l i cyi ncl ud ed the fol l ow i ng “ agre ed pai d for l oss” cl ause :

“ A gr e e d pa y f

orl os s orda m a ge t o the ve s s e l w he n c aus e d bythe br e a c h of a ny w arranty c on t ai ned i n thi s pol i cyby a pai d capt ai n and / or cr ew m em bers or a c ha rt e r e rpr ovi de d . . . s uc h br e a c h i s notc om m i tt e d w i th the c ons e nt , appr ova l or k n o w le d g e o f

th e a s s u r e d .” T he part i es l at ernego t i at ed changes t o the navi gat i on al l i m i t s f or a l i m i t ed4

t e rm of c ove r a ge . I n the f

a l l of 2002, G e or ge D ow ni ng, the be ne f i c i a l ow ne rof B ur l e y M a r i ne , de c i de d t o tr a ns portthe T hr e e D t o M a rt i ni que , a n i s l a nd i n the W e s tI ndi e s , f

orthe w i nt e rs e a s on. D ow ni ng ha d hi s i ns ur a nc e br oke robt a i n f r om L l oyd’ s an end orse m entt o the i nsurance po l i cy , w hi ch prov i ded that , “ [u] po n saf e arri val i n M art i ni qu e, crui si ng i s r es tri ct ed t o C ar i bb ean W at er s unt i l A pri l 20 03 . ” O n M ar ch 31 , 20 03 , L l oyd’ s i ss ued a se cond endo rs em ent , w hi ch prov i ded that

“ the c rui s i ng r a nge i s e xt e nde d t o i nc l ude C a r i bbe a n w a t e r s up t o a nd i nc l udi ng A pri l 16 , 20 03 . ” O n A pri l 10 , 20 03 , L l oyd’ s i ss ued a thi rd endo rs em ent , w hi ch prov i ded that“ the crui si ng rang e i s e xt ended t o i ncl ud e C ar i bb ean w at er s up t o an i nc l udi ng 28th A pr i l 2003. ” N e i the rthe pol i c ynorthe e ndor s e m e nt s de f i ne d the te rm “C a r ib b e a n W a te r s .” O n A pri l 14 , 20 03 , the T hree D ran agrou nd on a bea ch i n F t . L auderdal e, F l or i da . I tw a s pi l ot e d by K a j C ol l i ns , ac apt a i n hi r e d byT r e vorW oodm a n, the c ap ta in h ir e d b y D o w n in g to p ilo t th e y a c h t. T h e T h r e e D w a s ta k e n to C ab le M ari n e, w h ere F en b y w as i n j u red . F en b y an d h i s w i fe b ro u g h ta l aw su i tag ai n st va r i ous e nt i t i e s , i nc l udi ng B ur l e yM a r i ne . O n A pr i l 22, 2003, L l oy d’ s i s s ue d a f in a l e n d o r s e m e n t, w h ic h p r o v id e d “c o v e r a g e is e x te n d e d to in c lu d e c ru is in g in F l ori da w at er s. ” B ur l e y M a r i ne f

i l e d athi r d- pa rtyc om pl a i ntf orade c l a r a t oryj udgm e nt5

a g a in s t L lo y d ’s r e g a r d in g c o v e r a g e f o rd a m a g e to th e v e s s e l a n d in ju r ie s to F e n b y . B url eyM ar i ne pres ent ed three ar gu m ent s. F i rs t , i tcont ended thatthe navi gat i on al l i m i t s ha d notbe e n br e a c he d, be c aus e the phr a s e “ C a r i bbe a n W a t e r s ” i s a m bi guous and sho ul d b e c on strued agai nstL l oyd’ s. S ec on d, i tar gu ed, i n the al t ernat i ve, that th e “h e ld c o v e r e d ” p r o v is io n o f th e in s u r a n c e p o lic yp r o v id e s c o v e r a g e . F in a lly , it as se rt ed thatthe “ agre ed pay f or l oss” cl ause prov i des c ov er age. T he di s tr i c tc ourte nt e r e d ade c l a r a t oryj udgm e nti n f a vorof L l oy d’ s . T he di stri ctcourtappl i ed F l ori da l aw i n i nt erpret i ng the contra ct s of m ar i ne i nsurance, s e e W i l burn B oa tC o. v. F i r e m a n’ s F und I ns . C o. , 348 U . S . 310, 321, 75 S . C t . 368, 3 7 4 ( 1 9 5 5 ) , a n d r e

je c te d a ll th r e e a r g u m e n ts o f B u r le yM a r in e . O urs t a nda r d of

r e vi e w i s s e tt l e d: W e r e vi e w the l e ga l c onc l us i ons of the di s tr i c tc ourtde novo a nd the f i ndi ngs of

f a c tf orc l e a re rr or . M i t c he l l v. H i l l sborou gh C ou nty, 46 8 F . 3d 12 76 , 12 82 (11th C i r. 20 06 ). B ur l e y M a r i ne f

i r s tc ont e nds tha tthe T hr e e D di d nots a i l be y ond the navi gat i on al l i m i t s c ov er ed by the i nsurance po l i cyw hen i tran agrou nd on a bea ch in F t. L au d e r d a le . B u r le y M a r in e a s s e rts th a t th e p h r a s e “C a r ib b e a n W a te r s ” is am bi gu ou s and shou l d b e c on strued agai nstL l oyd’ s. W e di sa gree . C on traryt o the as se rt i on of B url eyM ar i ne, “ ‘ [t ] he m er e f ai l ure t o p rovi de a defi ni t i on for at erm i nv ol vi ng coverage does notnece ss ar i l y r ender the t erm6

a m b ig u o u s .’” H e a lth O p tio n s , I n c . v . K ab e lle r , 9 3 2 S o . 2 d 4 1 6 , 4 2 0 ( F la . D is t. C t. A pp. 2006) ( quot i ng J e f f e r s on I ns . C o. of

N . Y . v. S e aW or l d of

F l a . , I nc . , 586 S o. 2d 95 , 97 (F l a. D i st . C t . A pp . 19 91 )) . “ A m bi gu i ty i s noti nv ar i abl y pre se ntw hen a n a ly s is is r e q u ir e d to in te rp r e t th e p o lic y .” G u lf T a m p aD ry d o c kC o . v . G r e a t A tl. I ns . C o. , 757 F . 2d 1172, 1175 ( 11th C i r . 1985) ( c i t i ng B l ue S hi e l d of F l a . , I nc . v. Wo o d l i e f

, 3 5 9 S o . 2 d 8 8 3 , 8 8 4 ( F l a . Di s t . C t . Ap p . 1 9 7 8 ) ) . “ Un d e rF l o r i d al a w, the w ords ut i l i ze d i n an i nsurance pol i cyar e t o b e gi ven thei r pl ai n and ordi nary m e a n in g .” R ig b y v . U n d e rw r ite r s a t L lo y d ’s , L o n d o n , 9 0 7 S o . 2 d 1 1 8 7 , 1 1 8 8 n .1 (F l a. D i st . C t . A pp . 20 05 ). T h e p h r a s e “C a r ib b e a n W a te r s ” is n o t a m b ig u o u s in th is c ir c u m s ta n c e . U nde rthe pl a i n a nd or di na ry m e a ni ng of the w or ds , “ C a r i bbe a n W a t e r s ” do not i ncl ud e w at er s i m m edi at el y off the coas tof F t . L auderdal e, F l ori da. “ C ar i bb ean W at ers” are w at ers o f o r rel at i n g t o th e “ C ari b b ean , ” an d T h e O x fo rd E n g l i sh D ic tio n a ry d e f

in e s th e w o r d “C a r ib b e a n ” a s a n a d je c tiv e o rn o u n “ap p lie d to c e rt a i n of

the W e s tI ndi a n i s l e s , a nd t o the s e abe tw e e n the m a nd the [ S outh a nd C e ntr a l A m e r i c an] m a i nl a nd. ” T he O xf or d E ngl i s h D i c t i ona ry899 ( 2d e d. 1989) ( e n try f o r“C a r ib ” ) . F t. L au d e r d a le is n o t aW e s t I n d ia n is le , a n d b e tw e e n F t. L auderdal e and the C ar i bb ean S eaar e m ore than 2 00 m i l es of the A t l ant i c O ce an a nd the i s l a nd of

C uba . S e e 14 T he N e w E nc y c l ope di aB r i t a nni c a304 ( 15th e d.7

2003) ( e ntry f

or“ C a r i bbe a n S e a ” ) ( de s c r i bi ng the C a r i bbe a n S e aa s bounde d t o the no rth b y the i sl ands of C ub a, H i spani ol a, Jam ai ca , and P uert o R i co). S e c ond, B ur l e y M a r i ne a r gue s tha t , e ve n i f the T hr e e D s a i l e d be y ond the na vi ga t i ona l l i m i t s c ove r e d by the i ns ur a nc e pol i c ya nd the e ndor s e m e nt s , the “h e ld c o v e r e d ” p r o v is io n o f th e p o lic yp r o v id e s c o v e r a g e . W e d is a g r e e . A “h e ld c o v e r e d ” c lau s e p r o v id e s c o v e r a g e w h e n ab r e a c h o f w a rr a n tyo c c u r s , b u t o n lyif the breac h w as no tw i l l ful . H i l t on O i l T ransp. , 75 F . 3d at63 0. T he di stri ctcourt f ound tha tD ow ni ng know i ngl y a nd i nt e nt i ona l l ys e ntthe T hr e e D outof “C a r ib b e a n W a te r s .” B u r le y M a r in e a r g u e s th a t, c o n tr a ryto th e f in d in g o f th e d is tr ic t c o u rt, D o w n in g d id n o t k n o w th a t th e w a te r s im m e d ia te lyo f f th e c o a s t o f

F t. L au d e r d a le w er e out si de “ C ar i bb ean W at er s, ” butB url eyM ar i ne fa i l s t o p rovi de any e vi dence t o s upportthi s a s s e rt i on. “ I f the appe l l a nti nt e nds t o ur ge on appe a l tha taf i ndi ng [ of the di s tr i c tc ourt ] . . . i s uns upport e d bythe e vi de nc e ori s c ontr a ryt o the evi dence, the appel l antm usti ncl ud e i n the re cord a transcr i ptof al l evi dence r e l e va ntt o tha tf

i ndi ng . . . . ” F e d. R . A pp. P . 10( b) ( 2) . B e c aus e B ur l e yM a r i ne f a i l e d t o c om pl y w i th thi s rul e , w e c a nnotr e vi e w the a l l e ge d e vi de nt i a rye rr ora nd m us ta f f i rm the f i ndi ng of the di s tr i c tc ourt . L or e n v. S a s s e r , 309 F . 3d 1296, 1304 (11th C i r. 20 02 ).8

F i na l l y , B ur l e y M a r i ne c ont e nds tha tthe “ a gr e e d pa yf orl os s ” c l aus e of

the i ns ur a nc e pol i c y pr ovi de s c ove r a ge . L l oy d’ s “ [ a ] gr e e d [ t o] pa yf orl os s orda m a ge t o the ve s s e l w he n c aus e d by the br e a c h of a nyw a rr a ntyc ont a i ne d i n thi s pol i c yby apa i d c apt a i n a nd/ orc r e w m e m be r s orac ha rt e r e rpr ovi de d . . . s uc h br e a c h i s not com m i tt ed w i th the consent , approv al or kn ow l edge of the as sure d. ” B url ey M a r i ne a r gue s tha t , e ve n i f na vi ga t i ona l l i m i t s w e r e br e a c he d, the br e a c h w a s not c o m m itte d w ith th e c o n s e n t, ap p r o v a l, o rk n o w le d g e o f D o w n in g . W e di sa gree . T he di stri ctcourtfoun d thatD ow ni ng approv ed and o rder ed thatthe T hree D be sa i l ed beyond the navi gat i on al l i m i t s c ov er ed by the i nsurance p o lic y a n d e n d o r s e m e n ts . A lth o u g h B u r le yM a r in e c o n te s ts th is f in d in g , it a g a in o f f e r s n o e v id e n c e to s u p p o rt its a s s e rtio n . W ith o u t atr a n s c r ip t o f th e tr ia l to r e v ie w , w e m u s t a f

f irm th e f in d in g o f th e d is tr ic t c o u rt. T h e d e c la r a to ry ju d g m e n t o f th e d is tr ic t c o u rt is AF F I RME D.