Louisiana-Based Marine Insurer Sues to Void $980K Yacht Policy Following Fire and Salvage Claim in Miami
ION Insurance Company, Inc., a Louisiana-based surplus lines insurer, has filed a federal declaratory judgment action in the Southern District of Florida seeking to rescind a pair of marine insurance policies issued for the 105-foot luxury yacht Nirvana. The lawsuit, filed on November 25, 2025, under Case No. 1:25-cv-25544-PCH, targets Miami resident Angel Garcel and marine salvage provider CB Marine Towing and Salvage, Inc., doing business as Sea Tow Miami.
Marine Insurance Dispute Arises from Fire-Damaged Yacht and $525K Salvage Bill Submitted by Sea Tow Miami
According to the complaint, Garcel submitted a claim under his 2025 renewal policy with ION after a March 2025 fire destroyed the M/Y Nirvana, a 105-foot Rodman yacht allegedly valued at $980,000. The fire, described by Garcel’s attorneys in a related court filing as a targeted arson attack, triggered salvage and environmental cleanup efforts by Sea Tow Miami, which submitted a combined wreck removal and pollution control bill exceeding $500,000.
ION contends it has no duty to cover the loss because it discovered what it alleges are numerous material misrepresentations and omissions made by Garcel during the underwriting process. The company also argues that Sea Tow’s salvage charges are either barred entirely due to policy exclusions or subject to strict salvage limits even if the policy remains in force.
Insurer Seeks to Rescind Yacht Insurance Policy Over Alleged Misrepresentations About Ownership, Criminal History, and Litigation
ION issued two marine insurance policies to Garcel covering the Nirvana: one for the 2024 term and a short-term renewal running through March 2025. In its complaint, ION accuses Garcel of providing false information regarding his sole ownership of the vessel, failure to disclose pending litigation related to the yacht, and omitting information about violent disputes, including a shooting in December 2024 and the subsequent fire. The insurer claims these nondisclosures constitute material breaches of the duty of uberrimae fidei—a legal doctrine requiring utmost good faith in marine insurance contracts.
ION references multiple lawsuits dating back to 2022, in which other parties claim to be the rightful owners of Nirvana, allege fraudulent title registration, and accuse Garcel of diverting charter revenue. In one such case, plaintiffs alleged that Garcel registered the vessel in the name of his entity, Jet Skis in Miami, as part of a scheme to gain sole control despite not contributing to the purchase price.
The insurer states that had it known about the ongoing ownership disputes and related violence, including the December 2024 shooting and arson, it would not have issued or renewed coverage on the Nirvana. ION claims it formally rescinded the policy and returned all premiums paid by Garcel in October 2025.
ION Seeks Court Declaration Voiding Yacht Policy and Denying Coverage for $525K Salvage and Fire Loss
In its two-count complaint, ION requests that the court declare the 2024 and 2025 policies void ab initio due to alleged misrepresentations and omissions in underwriting documents. Alternatively, if the court finds the policy remains valid, ION seeks a ruling limiting its liability for salvage to $88,200, based on policy language capping salvage coverage at 10% of the hull value with a 10% deductible.
ION cites Eleventh Circuit case law supporting rescission of marine insurance policies for misrepresentation under the doctrine of uberrimae fidei, including Quintero v. Geico Marine Insurance Co., AIG Centennial Insurance Co. v. O’Neill, and HIH Marine Services v. Fraser.
Lawsuit Highlights Importance of Full Disclosure in Marine Insurance and Salvage Claims Involving High-Value Yachts
This case underscores the heightened legal standards that apply to marine insurance policies and the severe consequences of failing to disclose relevant litigation, criminal allegations, or financial arrangements related to yacht ownership. ION is seeking a clear judicial ruling to avoid responsibility for a potentially fraudulent claim and a costly salvage invoice submitted by Sea Tow Miami. Both Garcel and Sea Tow are expected to contest ION’s attempt to void coverage and limit salvage reimbursement.
Contact a Florida Marine Insurance Attorney for Disputes Involving Yacht Policies, Misrepresentations, or Salvage Claims
Yacht owners, insurers, and salvage operators engaged in marine insurance coverage disputes, including allegations of material misrepresentation, policy rescission, or salvage rights, should consult with an experienced maritime attorney. These complex cases often hinge on underwriting disclosures, litigation history, and specialized admiralty doctrines such as uberrimae fidei. To protect your interests and understand your rights in a high-value yacht insurance dispute, contact our team today.
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Disclaimer: Our firm does not represent the plaintiff in this case and is not involved in the litigation. The information provided is a summary of allegations based on publicly available court filings. We make no representations about the truth of these allegations, are not commenting on the merits of the case, and are not predicting any outcome.
