National Specialty Insurance Company v. James Gang Charters, LLC

Background

National Specialty Insurance Company brought this declaratory-judgment action seeking a ruling that its insurance policy does not cover a boating accident involving the death of a jet skier. According to the defendants’ letter, National relied primarily on a policy exclusion for “willful, intentional, or criminal activity,” as well as defenses concerning an ignition-interruption switch and cooperation with the insurer’s defense.

The letter states that Jesse Mayer was convicted of vessel homicide in Florida after being acquitted of boating under the influence. Mayer appealed, and that appeal was pending when defendants requested a stay. The letter also states that a separate limitation-of-liability action in the Middle District of Florida had already been stayed pending the criminal proceedings.

Defendants’ Request

Defendants James Gang Charters, LLC and Mayer asked the court to stay, or pause, this civil action until the Florida criminal appeal concludes. They argued that the civil and criminal proceedings substantially overlap, including whether Mayer committed a criminal act covered by the policy exclusion and whether his refusal to provide statements based on the right against self-incrimination constituted a failure to cooperate.

Defendants further argued that proceeding would prejudice Mayer because he could not testify fully without risking self-incrimination. They also argued that deciding the insurance issue before the criminal appeal ended could waste judicial resources if the conviction were later reversed.

Court’s Action

The provided text does not contain a decision granting or denying the requested stay. It contains a directive from Judge Vernon S. Broderick requiring Plaintiff to respond to defendants’ request by October 10, 2024. The court therefore had not resolved the stay request in the text provided.