A small piece of fine print in a marina contract over who should be held responsible for injuries at a marina was initially a big headache to a Rhode Island [boat owner] . . .
Many marina contracts contain a broadly worded clause that seeks to hold the boat owner liable for any claims, damages, or losses incurred anywhere on the marina property, even if the marina is at fault.
Some clauses, known as "indemnity" agreements, have gone so far as to hold the marina harmless for anything that occurs on the property by any party, whether or not the person injured is related to the boat owner or the injury was caused by the boat owner.
In a BOAT/U.S. Marine Insurance case involving such a contract, the insured's guest's mother left his dock for the marina parking lot where she fell and broke her ankle on a temporary stairway.
She sued the marina for her injuries and the marina sued the boat owner, citing the indemnity clause in his contract. The marina's suit asked that the boat owner pay the marina's legal fees and to pay for any damages the woman might recover from the marina.
"This was a good test case because the incident was completely removed from the boat and any conduct on the part of the boat owner," said BOAT/U.S. Marine Insurance Claims Manager (and admiralty attorney) Steve Schwartz.
BOAT/U.S. argued in court that the marina's contract should be thrown out and the judge agreed. The indemnity clause in the slip contract was ruled void and the marina's suit against the insured boat owner dismissed. As a result, the injured woman's case against the marina continues without the boat owner as a party.
"Hold harmless" clauses such as the one in this case must be very carefully worded to be enforced. A contract can hold the marina harmless for the boat owner's negligence, but not their own. Relieving the marina of its own negligence is considered contrary to the public interest. . .
The above article appearing in the November/December 1988 issue of BOAT/U.S. Report is reprinted with their permission.
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