Great Lakes Ins. SE v. Raiders Retreat Realty
In brief
Maritime contract choice-of-law clauses generally control, subject to narrow exceptions that did not apply in this case.
- Where it stands
- Decided
Decided 9-0 · February 21, 2024 · Opinion by Justice Kavanaugh
- What it’s about
- The Supreme Court unanimously ruled that choice-of-law provisions in maritime contracts are presumptively enforceable under federal maritime law, overturning a lower court decision that allowed state public policy to invalidate them.
- Who it affects
- Maritime insurers and vessel owners can generally rely on the law named in their contracts. For example, a yacht policy choosing New York law will not ordinarily be set aside because another state has a conflicting policy.
Summary: written with AI from the case record.
What it's about
The case arose from a dispute over a yacht insurance policy that designated New York law as the governing authority.
The decision favors uniform federal rules for contracts tied to maritime commerce.
Question presented
Is a choice-of-law clause in a maritime contract unenforceable if enforcement would conflict with the “strong public policy” of the state whose law is displaced?
What the Court decided
Holding
Choice-of-law provisions in maritime contracts are presumptively enforceable under federal maritime law, with narrow exceptions not applicable here. 47 F. 4th 225, reversed.
- Result
- Reversed
The vote
- Joined the judgment
- Concurred in a separate opinion
- Wrote an opinion
- Majority · 8joined the Court's opinion
- Concurring · 1agreed with the result, wrote separately
- Thomaswrote separately
From the opinions
“Choice-of-law provisions in maritime contracts are presumptively enforceable under federal maritime law.”
What's next
Lower courts must apply the Court's rule when maritime contracts select a governing law. Insurers and vessel owners may review policy language with greater confidence that such clauses will be enforced.
Docket activity
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AI analysis generated: Impact Analysis
AI analysis generated: Opinion Summary
AI analysis generated: Decision Record
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AI analysis generated: Case Briefing
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Opinion added: opinion
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Brief added: Questions Presented
More questions
- What did the Supreme Court rule in Great Lakes Insurance?
- The Court ruled that maritime contract clauses choosing a state's law are generally enforceable under federal maritime law.
- Who is affected by the Great Lakes Insurance decision?
- Maritime insurers, yacht owners, and other parties to maritime contracts are affected when their agreements name a governing state's law.
- What happens next after Great Lakes Insurance?
- Lower courts must follow the new rule. Parties may rely on their maritime contracts' choice-of-law clauses, subject to narrow exceptions.
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.