Dimercurio v Sphere Drake Insurance plc (The ‘Cape Cod’) - US Court of Appeals (1st Circuit)(Selya Ct J, Coffin, Sen Ct J and Boudin, Ct J) - 31 January 2000

Insurance policy containing London arbitration clause - Massachusetts law voiding provisions in insurance policies which deprive the commonwealth’s courts of jurisdiction over the insurer - Whether arbitration agreement enforceable

The fishing boat Cape Cod was insured by the defendants. The vessel sank in July 1994 resulting in injuries to the plaintiff crewman. The defendants voided the insurance policy on the ground that the insured had never obtained a condition survey that was a prerequisite for coverage. The plaintiff obtained a judgment in the sum of $350,000 from the vessel’s owners in a personal injury suit. The shipowners then assigned to the plaintiff all rights they had against the defendants under the insurance policy.