Opinion ID: 557231
Heading Depth: 2
Heading Rank: 6

Heading: Calculation of Sue and Labor Charges

Text: 37 The district court awarded Anh Thi Kieu sue and labor charges in the amount of $15,405, some $8,000 short of the $23,000 requested. Even so, Albany contends that the district court's award is excessive as a matter of law. Sue and labor expenses are sums spent by the assured in an effort to mitigate damages and loss. The purpose of the sue and labor clause [in an insurance contract] is to reimburse the insured for those expenditures which are made primarily for the benefit of the insurer to reduce or eliminate a covered loss. Blasser Bros., Inc. v. Northern Pan-American Line, 628 F.2d 376, 386 (5th Cir.1980). 38 The district court's award of expenses under the sue and labor clause of an insurance contract is subject to the clearly erroneous standard of review. Id. The district court's award here withstands scrutiny. Testimony at trial suggested that the safest place for the STACY MARIE in light of its extensive damage was dry storage. If the vessel had not been stored, it likely might have capsized or sunk. 13 Accordingly, Anh Thi Kieu, in an effort to mitigate potential damages, placed the STACY MARIE in the dry dock at Sabine Offshore. 14 Anh Thi Kieu was entitled to reimbursement for these storage expenses; the court's award of $15,405 finds support in the evidence. 15