The opinion of the court was delivered by: PATTERSON
ROBERT P. PATTERSON, JR., U.S.D.J.
Defendant Cigna Property and Casualty Insurance Company ("Cigna") moves, pursuant to Federal Rule of Civil Procedure ("Fed. R. Civ. P.") 56(c) for summary judgment dismissing the claims of Plaintiffs Martin Myers and Sand & Seas, Inc. (collectively "Myers") to recover under a policy of marine insurance for damage sustained to Myers' 53-foot Hatteras yacht.
The subject of this litigation is Myers' 1976, 53-foot Hatteras motor yacht named "DAD'S TOY". (Defendant's Statement of Undisputed Material Fact Pursuant to Local Civil Rule 3(g) ("Def. 3(g)") P 1 and Ex. C.) Myers is suing Cigna under Yacht Policy No. YKR 271280 issued to "Sand & Seas Inc. & Martin F. Myers" ("the Policy") originally took effect on May 28, 1989 and was renewed for one-year periods until May 28, 1994.
(Id. PP 2-3.)
With respect to property damage, the Policy stated: "We will provide coverage for accidental direct physical loss or damage to your insured property as well as salvage charges, except as specifically excluded in this policy." (Affidavit of Edward J. Anderson, Sworn to On May 20, 1996 ("Anderson Aff."), Ex. A at 5.) The exclusions from coverage under the policy included: "manufacturer's defects, or defects in design" and "the cost of replacing or repairing any item having a latent defect that causes damage to your insured property; however, resulting damage would be covered." (Id.)
With respect to notice of loss the policy provides:
You must report in writing to us or our authorized agent as soon as possible after the occurrence of any accident, loss, damage, or expense which may be covered under this policy. This notice should state when, where and how the event occurred and should include the name and addresses of any witnesses. . . . If you do not provide the notice to us required by this section as soon as possible, any claim for such loss under this policy will be voided.
(Anderson Aff., Ex. A at 4) ("Notice Provision").
The policy further provided:
Suit Against Us: You may not bring a suit against us unless you have complied with all terms of this policy. In addition:
a. with respect to any claim or loss to insured property, any suit against us must be commenced within one year of the date of loss or damage.
(Anderson Aff., Ex A at 5) (the "Time-Bar Provision".)
On August 17, 1991, the vessel was damaged in Hurricane Bob. (Affidavit of Martin F. Myers In Opposition To Defendants Summary Judgment Motion, Sworn to on June 13, 1996, ("Myers Aff.") P 6.) After being notified of the loss on August 18, 1991, Cigna covered the cost of repairs to the vessel reported at that time. (Myers Aff. PP 7-8.)
On July 19, 1994, Myers observed fuel in the bilges of the vessel. (Myers Aff. P 9.) Upon discovery of the fuel, Myers contacted the Mattituck Inlet Marina and Shipyard, Inc. ("Mattituck") and delivered the vessel there for tests to determine the source of the fuel. (Myers Aff. P 10.) Mattituck employees were unable to determine the source of the leak. (Def. 3(g) P 9.) Myers had the bilges pumped out and took the aft fuel tank off line. (Myers Aff. P 14.) While operating the vessel in August of 1994, Myers again observed fuel in the bilges and delivered it again to Mattituck to investigate the source of the ...