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INSURANCE attorneys’ fees, interest and costs.” That estimate was sub- er involved parties (including the sworn deposition of the sequently adjusted to $2.2 million in damages. master of the adverse tanker) in the civil suit; a detailed re-

Two weeks later, the towboat company’s attorney pro- cord of both vessels’ movements prior to the collision; and posed that its pilot be deposed for the lawsuit, emphasiz- other exculpatory information gleaned from investigative ing that he was not the target of any civil or disciplinary records. Interestingly, the Coast Guard’s lead investigating action. The pilot’s attorney requested a hold harmless and of? cer claimed that the negligence charges and proposed indemnity agreement in exchange for his cooperation and 12-month license suspension were primarily based on the received it. Over the next several months the two attorneys towboat pilot’s original verbal statement made immedi- worked in a cooperative manner to prepare the pilot for ately following the collision in the absence of legal represen- his civil suit deposition which ? nally took place over four tation, and because he did not report the incident to his months after the summertime incident. To further protect license insurer until over 48 hours after the collision.

his client’s interest, the towboat pilot’s attorney also attend-

MPLOYEE ETENTION ed the tanker master’s deposition the following day. All of E R 101 the attorney’s billing time and related expenses were fully Inland marine company counsel and license defense attor- covered under the pilot’s license defense insurance policy. neys can work well together and have mutually satisfactory

Two months later, when things seemed to be settling outcomes when they combine their efforts in pursuit of a just down, the towboat pilot received that dreaded letter on decision for both employer and employee. As for the towboat

USCG stationery informing him that as a result of its in- pilot, for the approximately $500 annual premium paid for vestigation of the previous summer’s collision, “... there is his license insurance policy, he received almost $20,000 in actionable negligence on your part.” The proposed order fully paid legal representation without worrying how to fund was a 12-month outright license suspension in accordance his defense. But, perhaps more importantly, the veteran river with USC 7703. The pilot (and his attorney) was given three pilot avoided the hardship and career setback of a 12- month choices: go before an Administrative Law Judge for a Suspen- outright license suspension for negligent acts he did not com- sion & Revocation (S&R) proceeding; voluntarily surrender mit. Most would agree – a favorable outcome for all parties his credentials to the Coast Guard; or sign a settlement agree- concerned, and, a quality employee retained on the payroll.

ment, complete all required stipulations, and his Merchant

Mariners document would be placed on probation for a pe-

Randy O’Neill is Senior Vice President riod of 12 months. He was given 20 days to respond. with Lancer Insurance Company and has

Not willing to accept any of the choices offered by been Manager of its MOPS Marine License the Coast Guard, the towboat pilot’s attorney requested

Insurance division since 1984. Over the past and was granted a meeting between him, his client and 29 years, Mr. O’Neill has spoken and written on many the Coast Guard one week later to discuss its negligence occasions on the importance of USCG license protection. charges. As a result of that meeting, the Coast Guard with-

He is a regular contributor to MarineNews magazine. drew its negligence charges primarily because of its review

He can reached at: [email protected] of the deposition testimony provided by the pilot and oth-

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