Opinion ID: 569320
Heading Depth: 2
Heading Rank: 2

Heading: The Crown Zellerbach clause

Text: 28 In Crown Zellerbach Corp. v. Ingram Industries, Inc., 783 F.2d 1296 (5th Cir.), cert. denied, 479 U.S. 821, 107 S.Ct. 87, 93 L.Ed.2d 40 (1986), we held that the insurance contract must allow the insurer to take advantage of the owner's limitation of liability. Since then, inclusion of Crown Zellerbach  clauses has become routine. Brister argues that the district court erroneously found that the insurer could receive the benefit of limitation and that the failure to change the insurer's name in the rules included in the cover note does not affect the result. 29 The insurance underwriter's cover note referred to the insurer by its former name instead of by the name under which it issued the book of rules actually provided to AWI. This rule book, as Brister admits, contained a Crown Zellerbach clause. Brister asserts that under Louisiana law, the discrepancy between the name in the cover note and the name imprinted on the book of rules prevented the rules from being incorporated by reference into the insurance policy. 10 30 West of England Ship Owner's Mutual Protection and Indemnity Association (Luxembourg) Ltd. is the former name of AWI's insurer. In 1985, the insurer changed its name to West of England Ship Owner's Mutual Insurance Association (Luxembourg) Ltd. (West of England). Southern Marine and Aviation Underwriters, Inc., the insurance broker, sent a book of rules bearing the new logo and name along with a cover note to AWI providing coverage for AWI and Rig # 4 for the accident at issue. The cover note, under conditions, states: 31 Protection and indemnity as per the Rules of West of England Ship Owners Mutual Protection and Indemnity Association (Luxembourg) ... as attached. 32 In holding that West of England was entitled to avail itself of AWI's limitation of liability, the district court relied on uncontroverted testimony that aside from the minor alteration in name, the corporate entity issuing the insurance remained unchanged. We agree with the district court that the underwriter's inadvertent reference to the insurer's former name should not determine whether West of England can avail itself of AWI's limitation of liability. The rules that AWI received were the current rules for the company that provided the insurance and they contained a Crown Zellerbach clause. Under these circumstances, we concur that West of England may benefit from AWI's limitation of liability, if, after remand, the district court determines that AWI qualifies for limitation. 33