Massachusetts Boat Owner Sued by Marine Insurers in Florida Court Over Lightning Damage Claim to 47’ Catamaran
A group of marine insurance providers has filed a federal declaratory judgment action in the Southern District of Florida against Massachusetts resident Louis R. Paciello. The insurers—Accelerant Specialty Insurance Company, Hadron Specialty Insurance Company, Palomar Excess and Surplus Insurance Company, Texas Insurance Company, and Certain Underwriters at Lloyd’s of London—are seeking to void Paciello’s $1.25 million marine insurance policy following an alleged lightning strike incident involving his 47-foot catamaran, the M/Y Republic, in July 2025.
Marine Insurers Seek to Void Coverage Following Lightning Strike on Moored Catamaran in Vinyard Haven
According to the complaint, the incident occurred around July 9, 2025, while Paciello’s vessel was moored near Vinyard Haven, Massachusetts. The boat, a 2022 Freedom Center Console Catamaran powered by quad Mercury 450hp engines, was allegedly damaged after being indirectly struck by lightning. The strike reportedly impacted vital electrical systems, steering controls, charging systems, lighting, and multiple 12-volt pumps.
After Paciello submitted a claim under his marine insurance policy, which included $1,255,000 in hull coverage with a $37,650 deductible, the insurers launched an investigation. The surveyor’s report allegedly found multiple fire extinguishers on board had not been recertified, tagged, or recharged since their original manufacture in 2020.
Lawsuit Alleges Breach of Fire Suppression Warranty and Material Misrepresentation in Insurance Application
The insurance companies assert that Paciello breached a critical fire suppression warranty included in the policy, which required all fire extinguishing equipment on the vessel to be certified, tagged, and maintained annually by a licensed professional. The surveyor’s findings allegedly revealed that this maintenance had not been performed, making the policy void under its express warranty provisions.
The complaint further alleges that Paciello made material misrepresentations during both the original application and renewal process. According to the insurers, Paciello denied having any criminal convictions or recent violations. However, a DUI conviction from 2005 in Brevard County, Florida was later uncovered. Similarly, Paciello’s named co-operator, Christopher Kevin Braud, was also found to have multiple traffic-related convictions in Broward County, Florida, including a DUI in 2009 and a reckless driving arrest.
Marine Insurers Cite Doctrine of Uberrimae Fidei and Seek Judicial Declaration Voiding Coverage
The insurers are invoking the maritime doctrine of uberrimae fidei—a longstanding legal principle that requires utmost good faith and full disclosure by marine insurance policyholders. They argue that had they known of Paciello’s or Braud’s criminal records, or of the fire suppression system’s non-compliance, they would not have issued the policy on the same terms or possibly at all.
In addition to breach of warranty and uberrimae fidei, the insurers allege a violation of a general policy condition that voids the contract in the event of material misrepresentation or non-disclosure. They are asking the court to declare the entire policy null and void from its inception, which would relieve them of liability for Paciello’s pending claim related to the alleged lightning strike.
Insurers Argue for Strict Enforcement of Warranties and Marine Disclosure Duties in Yacht Insurance Dispute
Marine insurance policies, especially those involving high-value vessels like the M/Y Republic, often include strict conditions related to vessel safety systems and disclosure of operator history. The insurers argue that under both federal admiralty law and New York state law (as selected by the policy’s choice-of-law provision), warranties and representations must be strictly enforced. A single breach or misstatement, even if unrelated to the loss, can invalidate the entire policy.
Paciello’s policy was effective from July 21, 2024, through July 21, 2025. If the court sides with the insurers, the decision could leave Paciello without coverage for the damage sustained during the 2025 incident, potentially exposing him to significant out-of-pocket repair costs or vessel loss.
Contact a Maritime Insurance Dispute Attorney if Your Claim Has Been Denied or Challenged
Disputes involving yacht damage claims, fire suppression warranties, and alleged misrepresentations can be complex and require the guidance of an experienced maritime law attorney. If your marine insurance claim has been denied or contested based on policy breaches or alleged misstatements, you may still have legal options. Our firm assists boat owners, yacht operators, and maritime policyholders in navigating insurance denial disputes and declaratory judgment actions filed in federal court.
Contact us now to speak with a maritime insurance attorney and protect your interests in a coverage dispute.
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.
