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Page 26: of Marine News Magazine (May 2016)
Inland Waterways
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COLUMN INSURANCE “… the Coast Guard investigators interpreted his apologies as an admission of fault, leading to their 12-month suspension proposal. By the time his license defense attorney was ? nally contacted, assigned, arrived on the scene and interviewed him, the captain had talked himself and his company into a pretty tight spot.” to draft a less emotionally-charged CG-2692 Report in E Y R CXERCISE OUR IGHT TO OUNSEL which his culpability for the collision was much less pro- In hindsight, the reduced penalty, or even something less nounced. Obviously, this Marine Casualty Report (2692) severe, might have been the original proposed Coast Guard was seen as useful to his employer who now wanted him sanction had the towboat’s captain not attempted to provide to provide a deposition to bolster its defense position in a “voluntary statement” to investigators before contacting the $3,000,000 suit for damages brought by the tanker and conferring with defense counsel to which he was fully company. After receiving a ‘hold harmless and indemnity entitled to because of his license defense insurance policy. agreement’ from his company, the captain agreed to be de- It cannot be overemphasized as to how important it is for posed in the civil suit … with his own maritime attorney inland river sector mariners to understand that statements in attendance. which may appear to be innocent and straightforward to
Having already deposited his license with the Coast them can be interpreted completely differently by investi-
Guard following the incident, the towboat captain’s at- gators leading to career-threatening consequences. While torney simultaneously contested his proposed 12-month this particular case ended with a relatively good outcome, license suspension proposal in Administrative Court. And, the more than $20,000 in defense costs incurred would as additional facts leading to the casualty began to emerge have made for a very hollow victory for the hard-working and shared responsibility for the collision became more ap- professional mariner had he not had the forethought to parent, his MOPS-assigned attorney and the Coast Guard protect himself and his career with a license insurance pol- began to discuss a much less severe sanction against his li- icy which fully paid all the legal costs to defend his license.
cense in the form of a Settlement Agreement and Entry of
Randy O’Neill is Senior Vice President
Consent Order. In that agreement, the 12-month license with Lancer Insurance Company and has suspension was taken off the table and replaced with a one- been Manager of its MOPS Marine License month outright suspension followed by a six-month sus-
Insurance division since 1984. Over the past pension remitted on a 12-month probationary period. In 29 years, Mr. O’Neill has spoken and written on many addition, it was agreed that the captain complete a Naviga- occasions on the importance of USCG license protection. tional Rules refresher course during the one-month period
He is a regular contributor to MarineNews magazine. of suspension and send evidence of successful completion
He can reached at: [email protected] to the USCG’s Investigating Of? cer.
May 2016
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