Document 13-3
Filed 06/20/2008
Page 1 of 43
r
BANNTNG MICKLOW & BULL LLP William L. Banning, State Bar No. 75757 2 Edward M.Bullffl State BarNo. 141996 501 West Broadway, Suite 2090 3 San Diego, California 92101 Telephone: 619 230-0030 4 Facsimile: 619 230-1350 5 Attorneys for MT BARUR, NC. 6 7 8 9 10 11 12 New Hampshire Insurance Company,
13
I
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORMA Case No. 08 CV 0443 BEN POR DECLARATION OF MICHAEL HALLMARK
14
V.
Plaintiff,
15 16 Mi Barur, Inc., 17 18 19 20 21 22 23
25
Defendant 1. 2. I, Michael Hallmark, declare: I have personal knowledge ofthe facts stated in this Declaration. I am
an adult over the age of 18 years of age and if called as a witness, can and will competently testi& under oath as to the facts contained herein. 3. I am a professional yacht broker and have been in the yacht brokerage
24 business in San Diego and Southern California for approximately 14 years, and have been in the boating industry since 1977. In these capacities I have developed an value at any given time or place. I have also developed significant personal 26 extensive knowledge and expertise in valuing yachts, especially as to their market 27 28 I/,
EXHIBIT A-Il 86
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Page 2 of 43
1 3
4
knowledge regarding the manners in which different yacht owners hold title to their 4. In my capacities as a yacht broker and a yacht manager I have worked with Mr. Arsenio Farell helping him to buy, sell, upgrade and manage various yachts for over twenty years, and I have come to know him well on a professional and personal 5. Mr. Farell had, at the time ofthe loss of his 92' Hatteras MI BARUR, owned
2 boats, select the vessel's flag ofregistry, and other vessel management issues.
5 7
6 basis. 8 numerous high-end boats and yachts. In the larger yacht category, Mr. Farell owned a 9 42-foot Grand Banks, a 55-foot yacht the make of which I do not recall and a 7410 11 12 14 15 16 17 18 foot DeFever before he purchased the 92' Hatteras. Mr. Farell purchased the Defever and the 92-foot Hatteras for cash including a trade. As far as I know, Mr. Farell has never financed the purchase of a yacht and has never made an insurance claim on any 6. Prior to the time that Mr. Farell purchased the 92' Hatteras MI BARUR, I advised Mr. Farell that an opportunity existed to get an exceptional deal on this highend motor yacht. 7. As part of the purchase ofthe MI BARUIR, Mr. Farell traded his 74' DeFever yacht. Although many factors go into what a vessel will ultimately sell for,
13 boat he has owned.
19 prior to the transfer in question, the seller of the 92-foot Hatteras and prospective 20 owner of the DeFever, Mr. George Calcote, arranged for a survey by Mr. Marvin 21 22 23 25 26 27 28 Henderson, who placed the fair market value of the Defever at that time at $1,400,000. Although when Mr. Calcote resold the Defever, I recall he reduced the
asking price from $1.4 million to $1.1 million, and then to $950,000, and ultimately 24 sold the boat for $620,000, there is nothing to suggest to me that the fair market value of this vessel was ever less than $1,000,000. 8. Following the purchase ofthe MI BAIRUR, Mr. Farell invested a substantial sum of money in additional upgrades and equipment for his new yacht. As the person in charge of supervising and advancing the funds to do the initial work, my office
EXHIBIT A-Il 87
Case 3:08-cv-00443-BEN-POR
Document 13-3
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i
maintained receipts and documents evidencing the nature and extent of such work.
2 My brief review ofthese documents indicates that on this initial upgrade alone, Mr. 3 Panel! spent well in excess of $300,000 in the fall of 2003 alone. Moreover, it is my 4 understanding based on discussions with Mr. Farrell that, in addition to the above 5 work for which I have receipts Mr. Farrell also spent many thousands of dollars 6 more in further vessel improvements. 7 9. After conferring with counsel experienced in yacht purchase transactions, 8 Mr. Farell chose to hold title to the vessel in a single vessel holding corporation, a 9 practice that is very coimnon for both recreational and commercial vessels. Also, 10 based on my experience and my own personal involvement in many sales and ii
13
discussions with experienced lawyers involved in such transactions, it is my single vessel corporation is completely legal and is in fact specifically approved by that there are particular advantages to structuring the holding ofthe vessel in this
12 understanding that a non-U.S. citizen holding of 100% of the stock in such a U.S. 14 U.S. federal statue. While I am not a lawyer, it is also my understanding and belief
15
16 manner, including tax benefits and easier resale through stock sales, all commonly 17 used in legitimate vessel sale and holding transactions. 18 10. At the time that Mr. Farell decided to sell the Ml BARUR, he explained to 19 me the yacht had always been used as a center of his family life and relaxation, and 20 given that both of his daughters were leaving Mexico to study in the United States, he 21 23 24
25
and Mrs. Farell felt that the 92' Hatteras was simply too large for the couple at this yacht. 11. Mr. Farell was in no great rush to sell the MI BARUR and was willing to take the time needed to get a reasonable price. Indeed, Mr. Farell was always a
22 stage in their lives. He never mentioned any financial need or motivation to sell the
26 relaxed seller having bought and sold numerous high-end yachts in the past, and 27 while he always wanted to get a fair price, he was also flexible when the market 28 mandated a reduced asking price. For example, while the MI BARUR was originally
EXHIBIT A -Il
88
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Document 13-3
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I
offered for $2.7 million, the price was later lowered to $2.2 million at the suggestion
2 of Mr. Farell. However, this was not to say that Mr. Farell was in anyway desperate or 3 would take any offer. Indeed, Mr. Farell rejected multiple verbal offers on MI 4 BARUR, including an offer for $1.6 million cash and another for $1.85 million
5
including a home in trade said to be valued at $850,000. Based on my experience
6 and knowledge ofthe vessel, I firmly believe that she was worth at least the $1.9 7 million insured value on the date she burned. 8 12. After my initial attempts to sell MI BARUR proved unsuccessful Mr. 9 Farrell retained the services of a Florida based broker, I understand he had planned to 10 move the vessel to Florida and had already paid a deposit to have her transported 11 there. Prior to the time Mr. Farrell engaged the Florida broker, while I was still the 12 broker assisting him, Mr. Farrell discussed with me bringing the vessel to San Diego 13 for purposes ofmarketing her here, and I therefore attempted only a couple of 14 months before the vessel burned to secure berthing accommodations for MI BARUR
15
at Harbor Island West Marina, located on Harbor Island, in San Diego. I declare until penalty and perjury under the laws ofthe United States of Executed this 9th day of May 2008, at San Diego, California.
16 18
17 America and the State of California that the forgoing is true and correct.
chael Hallmark 21 22 23 24
25
26 27 28
EXHIBIT A II 89
-
____________________________________________
Case 3:08-cv-00443-BEN-POR Document 13-3 Filed 06/20/2008 Page 5 of 43
2
3 4
BANNING MICKLOW & BULL LLP William L. Banning, State Bar No. 75757 Edward M. Bull 1111, State Bar No. 141996 501 West Broa4way, Suite 2090 San Diego, California 92101 Telephone: 619230-0030 Facsimile: 619 230-1350 Attorneys for MI BARUR, INC.
6
7
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF CALIFORNIA Case No. 08 CV 0443 BEN
FOR
8 9
10
II 12 13 14 15 16 17
New Hampshire Insurance Company, Plaintiff,
v. Mi Barur, Inc., Defendant
DECLARATION OF PAUL TRUSSO
1. 2.
I, Paul Trusso, declare: I have personal knowledge of the facts stated in this Declaration. I am an
is
19 20
21
adult over the age of IS years of age and if called as a witness, can and will competently testif' under oath as to the facts contained herein.
3.
I am an attorney licensed to practice law in the State of California and in
22 23 24 25 26 27 28
the United States District Court for the Southern District of California, and I have a practice emphasis in, among other things, vessel purchase and sale transactions, and registration issues associated with vessel ownership. In this capacity I believe I have
developed an extensive knowledge and expertise in the manner different yacht
owners hold title to their boats, select the vessel's flag of registry, and other vessel
management issues.
EXHIBITA- 2 90
_______________________
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1
4.
In my capacity as a lawyer I have worked with Mr. Arsenio Farell
2 3 4 5 6
7
helping him to buy, document, hold and sell various yachts and I have come to know him on a professional basis. In this capacity, I assisted and advised Mr. Farell in regard to the purchase, flagging and holding of the 92' Hatteras yacht MI BARUR, and I can say with complete confidence that Mr. Farell holding title to his yacht in a single vessel holding corporation is a practice that is very common for both recreational and commercial vessels, and is completely legal. 5. Also, based on my legal expertise, specific research, and substantial experience and involvement in many such sales and transactions, I can say without a doubt, that a non-U.S. citizen holding of 100% of the stock in such a U.S. single vessel corporation is completely legal and is in fact specifically approved by U.S. federal statue. 6. There are particular advantages to structuring the holding of the vessel in this manner, including tax benefits and easier resale through stock sales, all commonly used in legitimate vessel sale and holding transactions. I declare until penalty and perjury under the laws of the United States of America and the State of California that the forgoing is true and correct. Executed this 21st day of May 2008, at San Diego, California.
8 9 10
ii
12
r 13
14 15 16 17 is 20 21 22 23 24 25 26 27 28
Paul S. Trusso, Esq.
EXHIBIT A 1 91
-
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i BANNING MICKLOW & BULL 1.12 WilliamL. Baurthig State BarNo. 75757 2 EdwardM.Buillg StateBarNo. 142996 501 West Broadway, Suite 2090 3 San Diego, California 92101 Telephone: 619 230-0030 4 Facsimile: 619 230-1330 5 Attorneys for MI BARIJR, INC. 6 7 S 9 10 New Hampshire Insurance Company, 11 P1aintif UNITED STATES DISflJCT COURT SOUThERN DISTRICT OF CALIFORNIA.
Case No. 08 CV 0443 BEN ?OR.
DECLARATION OF HENRY ISIENNA
14 15 16
17
MiBanr.Jnc., Defendant
1.
2.
1, Henry Medina, declare:
1 have personal knowledge ofthe frcts stated in this declaration. I am an 19 adult over the age of 18 years ofage and if called as a witness, can and will
18
20 competently testify under oath as to the facts contained herein. 21 I am a professional marine insurance broker and have been in the marine 3. 22 insurance btsiness in San Diego and Southern California for over twenty years. In 23 this capacity I have developed extensive knowledge and expertise inswmn yachts, 24 incltzding, I believe, a very good understanding as to what infontation is material to 25 writing a particular risk and as to what is expected by marine underwriters during the 26 application process. In my capacity as a professional marine insurance broker I have worked 28 with Mr. Arsenic Farell helping hun to insure tous yachts for over ten yeats. Mr.
27 r 4.
EXHIBIT A-13 92
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Farell had, prior to the time of the loss of his 92' Hatteras Ml BARUR, owned 2 numerous high-end boats and yachts. In the larger yacht categoxy, I un&tnd that Mr. ParcH owned a 42-foot Grand Sanks, a 55-foot Grand Banks and a 75-foot 4 Defevcr before he purchased the 92' Hatteras. To the best of my understanding. Mr.
3
5 ParalI purchased each of these vessels for cash and/or trade, never cairied any loans on any ofhis yachts, and always fully insured such vessels. As fir as I know, Mr. FarelI he has never made art insurance claim on any boat be has owned. 8 5. To the best ofmy knowledge Mr. Patti] and his corporation, through his
7
9 staff, was always completely forthcoming in his dealings with me and has fully 10 advised me ofaD relevant facts regarding his yacht Based on n'y many years of 11 experience in the marine insurance business in general, and with New Hampshire 12 Insurance Company "NHIC" in particular, at the time of placing the first N}UC
13 policy on the Ml BARUR,. aiid in the renewal or replacement of that policy with
14 15
NHIC, I, in turn, gave all information which I considered to be material
to NHIC,
in
addition to any and all material requested by the representatives ofNBIC.
6. In placing this insurance I had absohitely no incentive to misrepresent or 17 conceal any facts. I had experienced no trouble whatsoever insuring this yacht in the 18 past, I had received quotes of lesser premium from other insurers, and I could have 16
19
placed insurance with numerous companies other than NHIC.
20 7. 1 also had insured many vessels held by single vessel owning 21 corporations and/or Mexican citizens, never with any problem or any indication from 22 any underwriter, including Mr. Clark and others at NHTC, that either of these 23 considerations were considered negative risk factors by the underwriters. Mr. Clark
24 25 26
and other representatives of NHIC were never shy about requesting information the
felt was important to them.
27
28
NHIC's own, underwriting files will reveal that it commonly insures such single vesael corporations, including companies where the stnck is entirely held by
8. Mexican Citizens. When NIUC and similar marine iuswance hull underwriters insure
EXHIBIT A -13 93
Case 3:08-cv-00443-BEN-POR
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vcsse owned by single vessel holding corporations, none oftheir standard 2 application forms or questionnaires that I have seen inquire as to the nationality of the i S
4
stock holders ofsuch single vessel corporations.
9. I was well aware at the time of n1aking the application gubnthsions to
NBXC that it was very common fbr yachts to remain in Mexico for the entire year and 6 that this had never been an issue that was of any concern to any insurer I worked
5
7 with, including N}C.
Although none of NI-tIC policies on the MI BARUR required her to 9 return to U.S. waters for any period oftime, it is not uncommon faT insurers that do
8 1.0.
to want a vessel to return to a specific Jocation to so mandate in the t'ading warranty or ii elsewhere in the policy. However, an inswed has paid for an absolute right to go 12 anywhere in those areas, for any period of time, unless the insurer the policy LB imposes some limit Other than what was set forth in the weather plan and a 14 declation increasing the deductible for weather damage sustained in the southern 15 portion of the warranted area duthng the storm season, the pliy in force on the date 16 of th loss of the MI BARUR had no ssch restriction. I am aware ofnot a single 17 instan.ce where the Mi BARUR violatedher trading warranty for even a day. 11. After I faxed Captain Rello's resirne to Chris Clark at NHIC, having 19 received no response to this fax or an e-mail, I called Mr. Clark. He said he had been 20 on vacation and out of the of&e. I asked if the material I forwarded were acceptable. 22 He then asked why the Captain's resume was vriLwn in Spanish. He asked if
22
23
24
everyoiic could read this, and I replied to the efibet, "well, they are all Mexicans." I asked him "are we still OK," referring to the documents I submitted, including the
Ceptain's resume. He replied, "yes, we should be OL" The policy was subsequently 25 issued. 26 12.
At the time of the 2007 remewai, I suggested that Mr. Farell obtain an
27 updated survey, because the eaSer had inquired whether there was an updated 28 I/I
EXHIBIT A -13 94
Case 3:08-cv-00443-BEN-POR
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r
1 survey, and some quotes I received from other companies requested an updated 2 survey
3
4
13.
The Agreed Value forthe 2007-2008 policy of$1.9 mithon was not
based on any request or representation made by tnt or the lnsureds, but was based on 5 independent research by MGA's underwriter, Mlchad Terrier. Mr. Terrier informed mc that if the vessel was beitig advertised for sale for $1.9 millien. that is all he
wanted to insure it for. 14.
-
6 7 8
As I explained to Mr. Robb before the denial letter was even scm out. 9 Mr. Schwede made the following comment; "New polky, less than 30 days old, At the time, I assumed Mr. Sclrwede was jokixtg. but ii I corrected him by noting that the policy was in fact a renewal and had a new policy 10 total loss, Maican, be dd it." 12 number, and that the policy was not less than 30 days old. r I declare until penalty and perjury under the laws of the United States of 14 America and the State of Caflfc'itia that the forgoing is true and correct. 1$ 16
17 `e&na
Executed this 21st dey ofMay 2002, at San Diego, California
EXHIBIT A -13 95
____________ _________ -
________________ __________
Case 3:08-cv-00443-BEN-POR
Document 13-3
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Page 11 of 43
Macfume General ,4gencg
* Wtbm4CTa4n
$oC44cs
aad.
r- 840-3fl.170
ltLc
LOSS PAttE INFO ?ayse: Add'ess: % Anat______________________________ NZw doperadorix at flit busSes: ySfraeflacive±WYes Na AFflLIAflON To OWSR
,j',itr
I! Contorscleeunofemiutiwatvaisfl
NMIEO OPERATORS
CA
Byes
DNa
OWA
r
Hul ro/seija # C-IWO T7 CONSTRUCTION TYPE . v, w
a
J
J
L.StS_
iidcaøj.
yat
/99/
94
WOdO 141/Y
/
EXHIBIT A -14
96
Case 3:08-cv-00443-BEN-POR 15i9
09/18'tOOJ 11:35 PU 00S3724fl7
Document 13-3
cRUaD YAC7iT
Filed 06/20/2008
Page 12 of 43
Iti.
114
p
OO2
CHUBB GROUP OF INSURANCE COMPANIES
Z02 Hairs Mill Road WNI,house Station, NJ 0889-1 800 Pflone 1-$004fl4fl5 Fax 1-908-512-4057
YACHT INSURANCE QUOTE
-
--..
-.
The quatUon fut this yacht is based upon invonnatinn provided by Urn producer wtd prospectin IVisu?eØ anal; 5uWect to itaiving lb. c.ptaln's resume, the one year tttnerary and a cinvertt marine survey It ?pplicSr, wiThin thIrty 30 days from this quotation dute. Producer; fldsvf.tI UTS 41 .rzce Agency
Date:
Insured:
9/18/03
Arsenic PartY Campa 1190 92tt Hafteas
Yacht Description:
Name:
* Hull Deductible: Total # of Crew: Charter Coverage: Towing Coverage:
N/A
MI0O0
HuR Value:
liability Limit:
PeysQr,& Eetts:
$ $
2,2U0,000
300.000 23,000
2s1uu0
-
3 Full-lime
Noise Si c.oao
$
I
ir
diS Payments:
I
- -.
Personal Watsrnft Coverage:
Non.
Uninsured Boaters Coverage:
$1 .000,000
-
-,
--S.
Electronic ngvIgaonaI equipment is subject to a $250
..nit
deductThte.
Other
.nnst..n.tat.cn.n.rttt.*tnntttA*4flfltflt*tSttS.ttfl?It*tflfl**4fl
ntseaa**tttb*fli$*tttttS
coveransSpcla Conditipn
-
$2flOo Coral
Reel Coverage
525.500 SIanhel Fin. Art. CavtrgQQ no deductible no,aoo SuestIwet w.araavr Coverage thn rmnt be .miSnivm of; Full-Time crew mntbar Ri arzr to write
-411 rnonunfldslloii mat he Cgieiplercd within 3D days
$5,000 cemputu Ha.dwar* Coverage $2.60 Fire Arms Cover.9. Irlo dtdwctibIeJ - tt&QQ Additional Livifto txpttt Coverege
-
Total Annual Premium
S
I 2,545
Commission:
I 5Y
*
*?
*-*--*
*
` IS yoWiinaI%cs .
Authorized Repre
mitt
vs
seaworthy?
ml. Is a qUMMtnni noby, azbj.ctto the vgifltuvny. candlbt.i'u nviqadansI areas, IlmIteiIon vi'.tmnv'y to vIP policy term and Qtv ynhttu ho ln,,ad. InMnncecuvn I. net bound nor effective. This qiate I; vfld far thirty 50 fly' from 11w dete shove.
EXHIBIT A -15 97
no/tOO
Case 3:08-cv-00443-BEN-POR
Document 13-3
Filed 06/20/2008
Page 13 of 43
* ._.c.*
p...,
MARINE COVERNOTE #5171
INSURANCE GROUP
pending issuance of the Standard Marine Insurance Policy of the
Zurich Insurance Company
NAME OF lNSURA}CE COMPANY
Named Insured: Mi Barur, Inc.
Whose Address
Description of
Is:
Ves el:
2525
Sheltr
Island
Drive,
#B.
San
Diego,
CA 92106
Loss Payee, if any: Named Insured or Their Order 1992 on:
Month
Vessel
92'Hatteras Motor
Length Type
YachtHATDT3O1
11111
1990 12: 01
DOC#975461
Name
Mi Barbur
Year
Coverage to be Effective Insured for: Two
Septmber Mil on Two
23.
2003
Day
Year
fbr 30 days
Hour
Hundre
Machinery:
Thousand
and
Conditions of Insurance
r
Amount of Insurance-Hull &
$2,200,000.00
Deductible: Limits of Protection &
Limits of Medical Payments Navigational Limits: Pacifc
$ 44 .000.00
Indemnity:
Coverage:
$ 300,000.00
$ 25,000.00
of north
Pt. Mexico not more than 200 miles offshore.
coast l
waters
not
Cons&ption,
CA
or
south
ofAcapulco.
Special Conditions: WARRANTED PRIVATE PLEASURE USE ONLY. $ 300,000.00 Electronic's deductible $500 Theft Only Uninsured Boater Bodily Injury Only $ 300,000.00 Coverage included for 2 paid captain Oil Spill Liability Personal Effects $ 15,000.0O/$100.0O deductible Towing $ 1,500.00 A 3% HULL DEDUCTIBLE WILL APPLY FOR ANY WINDSTORM DAMAGE BINDER ISSUED PENDING ORK}INAL POLICY TERMS AND CONDITIONS. Premium:$20,990. Annual
The obLigations of the parties are according to the terms of the policy in ordinary use by the Company. This binder to condnue in force until replaced by a rogular policy, but in no event for a period longer than 30 days from the effective hour of commencement in this binder and the policy subsequently issued, that the time set forth herein shall govern and shall supersede and c r
ienccment
provisions contained in such
poIi
BYe-
27
* Fax
2390 SHELTER ISLAND DRIVE, SUITE 216 * SAN DIEGO, CALIFORNIA 92106 . 619 226-8661
Formerly Hall & Ma!one Marine Insurance
619
z2cnIeiE2.Aly/ 16
98
Case 3:08-cv-00443-BEN-POR
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Page 14 of 43
prJ
ZURICH MARThE SPECIALTY INSURANCE MASTER MARINER YACHT PROGRAM
PRINT DA'EITIME: O8l6-20O4/ 1:53 am TO; MARINERS GENERAL !NSURANCE,AGENT CODE: 023665Q8 ibis Is a quotation only, not a hinder.
QUOTE NUMBER: 23Db QUOTED BY: bill
t
We apprecialt the opportunity m pmvide a quoation on the fol1owing vessel, based on the Uftbmistion proWded. Quote Ia far 30 days- LI binding is reqnircd, we will neesi a completed and iigned application. OWNER: VESSEL:
M Banw Inc
Manna LA VU?: 1q99 .92 NAVIGATION: Coastwlse and navigable waxers of thc Paciilc Ocean nor narth of Bodegs Head, California nor south of
Acapulco Mexico. BULL LIAflLXTY 2,200,000 300,000
MEDICAL PAYMENTS PERSONAL EFFECTS
r
50,000 $100 DED.
50,000 300,000 10,000 PER OCCURRENCE
UNINSURED WATERCRAFT
TOWING AND ASSISTANCE
DIKOHY
$25t DEb.
TRAILER $100 DED.
ADDIflONALS ElSIE MARINER ENDORSESMENT ADED INCREASES SPECIPIC UMITS SEE ENDT
DEDI- 1% DEOt- 2% DEDIJCTIBLE-22,000 OEDUCTflLE-44,000
4cdustibk
TOTAL ?RRMIUM-23,050.00 TOTAL PREtolIUM20,R14.00
COMMENTS: 3% wiS3dstomi
if you have any qUCitiOna concntg tha or an:' otIrnT insurance coverages. please give us a Il, We arc very iiterestM in swttftaj sad raniniag tur good buelaten.
P.O. BOX IIMS
BALTIMORE, MD 21297
FAX: 410 534.3007
PU0NE:$Oofl.yse
EXHIBIT A -17
z
w c:;t
Case 3:08-cv-00443-BEN-POR
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r
MARINER' S GENERJiL INSUflNCE 2390 SRELTER ISLAND DRIVE, #216 SJUi DIEGO, CA 92106 PHONE 619 226-8661 FAX 619 226-6410 Company Memo
Maritime General Agency c/a Chris Clark fax: 860-399-3604 Named Insured:
8/17/04
Mi Barur,
#TBD
Inc.
Chris,
better
I currently
coverage and premium.
insure this vessel with Zurich, looking for
Attached is my signed application, survey and the captain information. There is also 1 crew member.
I have insured all of this insured's vessels, loss free. Vessel travelers from San Diego, Sea of Cortez to Acapulco. Reviewing my file, I do not see the surveyor's compliance letter which I will get. I know they were done.
Should you have any questions regarding this matter, please
do not hesitate sincerely, to call me.
Henry Medina
Total Pages
EXHIBIT A-lB
100
Case 3:08-cv-00443-BEN-POR
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r
YACHT
INSURANCE
Drive, %B
APPLICATION
Mariner's General insurance Group
1
I
II San Diego, CX Island 2525 Shelter 32106
I
Dcve S ..`O6nS Numos'
arbur, Inc.
ArJ4I$$L0I Ownwr
jocoupation
o YChI I
Y
Cci
Attorney
iRe9. S4ber
liLli cerdIucanazNn
HULL
i
Barbur
Tra_ wler
IlyasI
/975461 0
Auxiliary
11APDT30fl990 0 Runaoout 0
I
uenqth Hcuseboat
-
Sa,ibool
t.
P
ps..;I
SailoQal
Hatteras
in..nhlr.ç
f/c'
!...
h
Il99
`Prindpelly Moored At
Year Built
92
jOeiePuttht5eo
,9123/QkJ
I
.ipncrfl New flep'o.nohc Goat
$2.200.000
O$scjibe Any ModlfIest:on io MACHINERY
i_san DiegojAnay&co
eat Make
No.0' En9i-.,;
Enp'ne Type
DOasotine_ Ocosel
-
11992
Ocrtbe aty Moi1Ication to he Machiflafli EQUIPMENT
I
i Detroit
I
2
le$
i
Vessel Eqtjppcd WIFh Approved lype B.,ili In AULDTOtIIC SEtln9uidhing $ygtern
Date Ccflih1
It Vossal EQulpsd With ar.ip.to.Shore Radio ahor Speclaiftoc Safety ?quirnont
si
c__Descre:._......_.alOfl___._...._..._.
afunie Detector
-.
Se
Suxvey
T4s
Pincer
ft Rant
I
-.
Vcfle, Eau.pped With
....
It 621;ev Slave ApDroved for Mrin;Uae
0 ux. Generator Type Di Fuel: j Numoerand Type of Pitt rtIngvlsnofs
No
Type of FueL________________
fVathI:pg £xp. as Owner
1
GENERAL
JYachting xp.es Grew
25+
25+
SIze, Typo ot Vol tel a Owno
Name. Aç004 Oe'ator$ Vndvr lGAridbr end AnoJn;
Havtng Lta3 Than 7w
none
lttts of Expenencs
74' Defever 55' Trawler 90 `iteras
I
Cl
All `tPcht one
oviboarø
LGZ5C5 in?aevThtocVoara
I rr"JoNr STAW NON!
-ave ODerMDrISucccssluI'y Compisleø Fower Squadron C Coast Guard PwxIIary Course 1 V5flI Owned Corporately. Proviau SpecifIc Octills ci Utape
I;9Ve,sel UM!Ø Gor'mtrciiiiy DC Cnanered fi No__EpIaln:_..
none Licensed Neascan Captain
Training Course
Othor
àà
yes, pr&vate pleasure use only
Water Skiing
-
I: piiiELlihiAtqnnt.d
Pt.
eCifl9
DYes_Go
-. -_____
Dyes_o
Conception,
CA
to Acapulco, new purchase
jA. of uIl In. !MAnu4scturqr iMet.utbcturt Deductible
jPrevloua lnsuranc.Cernpsny
Policy NLmt,ber
F
cOVERAGE
lEtlective DIe Year
9123/Op
lS2.2ODp.__2.L_.. J.OO DO s 23..,000
f9e11& Nntor 1SedsI Jum: Cvlsflrcinq Modgage
pr
Ll:s
]Mlcai .ne..tsjPomroo
Es
J±e.PC& barc
I$
-.
U5,OQQ,
nIS signature of Agent
-
-He
gaaL
ci
,.4.J..IW
WW mwbflSPifltiMDmtI
a...
LaitSç
EXHIBIT A -19 101
______
______
Case 3:08-cv-00443-BEN-POR
Document 13-3
Filed 06/20/2008
Page 17 of 43
PATE--fl7-o
CHT QUOTE QUESTIL1NbJ4IRE qr
5cZsJeJ/e
PHONE H
_z:sJcJ-1 w 4
9CAT VESCfl PIT ON:
L ENOTH
MAKE 145
TYPE
.-
NAME
92 H.P. MAfl
1 AL
Vr
41;
ULL
IYPEC/
i
CF
Tg/áo
iQUI P,L4E141'
HIP TO
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a2e Ira,
SHORE
SOWJVER-ThTQ
L-IRFL-RVF
-
FUME RADAR 2-1IALON i_-BTKER
AGE
j_LCRAN SAT
NAY
_,
PILOT
.t'NERS OCCUPAflON; :cAST C-UARV
,4/jOn-?pV
YtXUER SQUAVRO-t
5'5
YEARS EXVERTENCE.
`RZQR EQATS C'UWEP'
.
SUWJEY IWFORMAflO?V;
`7
AFLOAY1XyVQcK
,¼//e,-cc
Oe&ue/
Cr0'-'
/N4K/;P/S
PATE OF SURVEY SUVEYQR ,Ciay-urL
74./' OPERATORS
`ZVICLLS I'LSLJRANCE 3YOUS LOSSES C.IRP4C LQCATtON
,i
I4rcIe.' S
Coo 0o
Cre
MARKET VALUE I
SCCC.0O.
..
REPLACO4EhT VALUE
?vr/c
/1,10 A.Je
a4 /
..1/
//
AMOUNT OF
HULL
`;
COVERAG&:
.E:VEW
/JaJAJC..
;2,c.OO_zOC±
t
COMPANY
3VW
24o
ooO
MEPZCAL PAYMENTS
COMPXNY'
ZWEQ
HULL
PSI MEW
7T VEP
Cl
w1
WI! I. L PS?
MEV
OTHER
07 HR TUTA L
EXHIBIT A -20 102
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Page 18 of 43
Page lofI
r
Henry Medina
From: Sent: To: Chris Clark [chris.ciark@marltlmegeneralcorn] Wednesday August 16, 2004 11:01 AM
[email protected] Subject: Mi Barur, Inc. Quote
Dear Henry Medina, Attached is the New Hampshire Mega-Yacht quotation for the above captioned. Please be advised this quotation will expire in 30 days from the quote date. This risk was quoted with the following coverages included:
* *
* *
*
*
*
Coverage for 2 Crewmembers $25,000 Coral Reef Damage $10,000 Computer Hardware $2,500 Fire Amis Coverage $25,000 Fine Arts Blanket Coverage $2,500 China & Silver Coverage
Pacific coastal Navigation
This quote is subject to the following conditions prior to coverage being bound:
* * * *
Receipt ofcompleted signed applications A Copy of the Captain's resume Signed Compliance letter for all recommendations noted in survey. Warranted a Full Time Captain be employed and in charge ofvessel
*
severe weather plan
The following additional premiums shall apply, if desired: 0.5% Deductible = $770 Al? If you have any questions please do not hesitate to email me, or call me directly at the number below. Sincerely,
Chris Clark
Yacht Underwriter
Maritime General Agency
Phone: 860 399-3694
Fax; 860 399-3604
,r-
For more information visit www.maritimegeneraLcom. Your insurance source for Marinas, Boat Dealers, Yacht Clubs, Boats & Yachts, Mega-Yachts and Charter Boats.
EXHIBIT A-21 103
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Page 1 of2
Henry Medina
Chris Clark chris.clarkmaritlmegeneraicom] Sent: Wednesday, August 18, 2004 1:03 PM To: [email protected] Subject: RE: Mi Barur, Inc. Quote
From:
Hi Heniy,
Yes, I can use the app I have here for binding. I did get the captain's license, but the resume is in Spanish? In any case I can bind with what I have subject to the other things. If you can sell it with increased premium and deductible, great, just let me lcnow. Thanks. Chris Clark
Yacht Underwriter Maritime General Agency Phone: 860 399-3694
Fax: 860 399-3604
For more
information visit www.niaritimegeneral.com. Your insurance source for Marinas, Boat Dealers, Yacht Clubs, Boats & Yachts, Mega-Yachts and Charter Boats.
From: Henry Medina [maitto:[email protected] Sent: Wednesday, August 18, 2004 2:48 PM To: Chris Clark Subject: RE: Mi Barur, Inc. Quote Chris, Will the 2003 signed application I faxed work to bind coverage? Also I faxed the captain license and resume, with certificates of the Merchant marine academy, he is the full time
captain?
I wifl get the signed compliance letter and weather plan. I will also increase your quote and advise you of the premium. 2% deductible while in Mexican waters and 3% windstorm deductible, will also apply? Please advise,
Henry
----Original Message--From: Chris Clark [mailto:[email protected]] Sent: Wednesday, August 18, 2004 11:01 AM To; [email protected]
EXHIBIT A 22
-
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.nryMedina
From: Sent:
To: Subject:
Chris, I
Henry Medina [email protected]] Tuesday, September 14, 2004 10:28 AM
CHRIS CLARK Ml Barur, Inc. 9? Hatteras Motor Yacht
just faxed you the signed survey compliance letter
and the weather plan.
Thanks Henry
A5
CM/k
1
EXHIBIT A -23 105
Case 3:08-cv-00443-BEN-POR
Document 13-3
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Page 21 of 43
Weather Plan
M/Y Mi Baur 1992 92' Hatteras The Motor Yacht Mi Baur is moved between and Acapulco, MX. Remaining in Acapulco about 6 months Pt. Conception, CA
out of the year.
During hurricane
Sea of Cortez.
season the vessel
La Paz
is moved north
into the
Vessel has a full time crew onboard and if needed the vessel is moved further north into the Sea of Cortez.
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EXHIBIT A-24 106
______ç2tç.
______
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Page 22 of 43
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COMPLETION OP SURVEY RECOMMENDATIONS SIGN-OFF FORM
Date: 9/14/2004
Insured: Mi Baru, Inc.
Policy
#:TED
I HEREBY CERTIFY THAT I HAVE DUTIFULLY COMPLIED WITH ALL RECOMMENDATIONS
MADE ON THE
Marvin
Henderson SURVEY, DATED 9/7/2003
A CONDITION AND VALUATION SURVEY HAS BEEN COMPLETED ON YOUR VESSEL. AN INSPECTION OF THIS KIND SHOT..JLD BE PART OF NORMAL MAINTENANCE AN] IS DESIGNED To IMPROVE THE QUALITY OF THE VESSEL COMPLETION OF THE SURVEY RECOMMENDATIONS WILL PROVIDE SAFETY, SEAWORTHINESS, AND EFFICIENT MARINE PERFORMANCE. IN ADDITION, A LOSS THAT MAY BE OTHERWISE COVERED MAY NOT BE IF SUCH A LOSS IS IDENTIFIED WITH NON-COMPLETION OF THE SURVEYORS RECOMMENDATIO S.
OW RS SIGNATURE
DATED
IF THERE ARE ANY EXCEPTIONS, LIST BY RECOMMENDATION NUMBER AND INTENDED DATE OF COMPLETION BELOW:
RECOMMENDATION # RECOMMENDATION #
RECOMMENDATION
#________________
DATE____________ DATE___________ DATE_____________
PLEASE RETURN TO OUR OFFICE OUR UNDERWRiTERS REQUESTS.
BEFORE
ASAPSO THAT WE CAN MEET
THANK YQUFOR YOUR PR OMPTATTENTION TO THIS MA ITER.
MARINERS GENERAL INSURANCE GROUP 2390 SHELTER ISLAND DRIVE #216 SAN DIEGO, CA 92106 Phone: 619 226-8661 Fax: 619 226-6410
EXHIBIT A -25 107
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NEW HAIvIPSERE INSURANCE COMPANY
-
S
Boston, Massachusefta
This is a declaration page with Policy Provisions Section A and Endorsements, if any, to issue and form part thereof, completes th below numbered policy of the NEW HAMPSHIRE INSURANCE COMPANY, A CAPITAL STOCK COMPANY. Policy No.EY 341-92-25 New Effective Date From: 09123/2004 toO9/23/2005 at 12:01 a.rn. Standard Time at place of issuance. Producer: 400060 Named Insured: Mariners General Insurance Mi Berur, Inc. 2390 Shelter Island Or 2525 Shelter Island Drive #8 Suite #216 San Diego, CA 92106 San Diego, CA 92106 Coverage applies to items below only when amount and limits are specified. Section Coverage Description Limits A HULL Agreed Value $2,200,000 Tender $22,000 B PROTECTION & INDEMNITY $300,000
Longshorernens & Haibor Woricen compensation Insurance as provided in public act 803 of the a9th congress, as amended. Includes coverage for 2 crew.
Deductible $44,000 $500 N/A
Premium $16,060 Inc. $1280
C E
Medical Payments Towing
personal Effects
$25,000 $10,000
$22,000
N/A N/A $250 N/A N/A
Inc. Inc. Inc. Inc. Inc. $660 $17,990
F 0
r H
Uninsured Boater Fuel Spill Liability
$300000 $300,000
Endorsements: Nay-I W-2, 8-11, 8-12, 8-5, MAN-2, 8-7, GC-1, MAN-I, MAN-3, 8-6, 8-8 TOTAL PREMIUM Description of Vessel: Year Built 1992 Manufacturer: Hatteras Length: 92 ft Model: M/Y Name: Mi Barur" DescrIption of Motors Year Built 1992 Manufacturer: Detroit
Hull Serial # HATDTSOI1990 Seriai# P:
5: Navigation Limits Warranty: Warranted confined to the use and navigation of coastal waters and tributaries of the Paciflc Ocean, not North of Pt. Conception, CA and not south of Rio Santo Tomas, Baja, MX. Nav.# 955
Gountersigned: 09/1512004 M 0 laxloc NY
MARITIME GENERAL ASENCY
The declarations page and endorsements attached hereto. are made part of, and attach to, policy form:74163 7/99
EXHIBIT A -26 108
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,-..
NEW HAMPSHIRE INSURANCE Covjppjjy
-
S
Boston, Massachusetts
this is a declaration page with Policy Provisions Section A and Endorsements, if any, to issue and form part thereof, completes the below numbered policy of the NEW HAMPSHIRE INSURANCE COMPANY, A CAPITAL STOCK COMPANY. Policy No,EY 3419225 Effective Date From: 09/23/2005 toOQ/23/2005 at 12:01 400060 Producer: Renewal
a.m. Standard Time at place of issuance.
Named Insured: Mi Barur. Inc. 2525 Shelter Island
Mariners General Insurance 2390 Shelter Island Dr
Suite #216
San
Drive #3
San Diego, CA 92106
Diego, CA 92106
Limits $2,200,000 $22,000 $300,000 Deductible $44,000 $500 N/A Premium $16,060
Coverage applies to items below only when amount and limits are specified.
Section A B Coverage Description HULL Agreed Value Tender PROTECTION & INDEMNITY Longshoremen's & Karbor Workers compensation insurance as provided in public 2ct 803 of the 69th congress, as amended.
Inc.
$1,260
C E F S r H
Includes coverage rot 2 crew. Medical Payments Towing Personal Effects Uninsured Boater Fuel Spill Liability
$25,000 $10,000 $22,000 $300000 $300,000
N/A N/A $250 N/A N/A
Inc. nc:. Inc. Inc. Inc. $650 $17,990
Endorsements: Nay-i, MAN-5 8-7, CC-i, MAN-I, MAN-2, B-il, 8-12, 8-5, W-2, 8-6, 8-8, MAN-3 TOTAL PREMIUM Description of vessel: Year Built 1992 Manufacturer: Hatteras Length: 92 ft Model: M/t' Name: "Ml Barur" Description of Motors Year Built 1992 Manufacturer: Detroit
Hull Serial# HATDT3OI19QO Seriai# P:
3:
Navigation Limits Warranty: Warranted confined to the use and navigation of coastal waters and tributaries of the Pacific Ocean, not North of Pt. Conception, CA and not south of Rio Santo Tonias, Baja, MX. Nav.# 955
Countersigned: 07/27/2005 M 0 Taxioc NY
MARITIME GENERAL AGENCY
The declarations page and endorsements attached hereto, are
made part of, and attach to, policy form:74163 7/99
EXHJBJT A -27 109
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NEW HAMPsHIRE INSURANCE CoMPANY
-
S
Boston, Massachusefts
This is a declaration page with Policy Provisions Section A and Endorsements, it any, to issue arid form part thereof, completes the below numbered policy of the NEW HAMPSHIRE INSURANCE COMPANY, A CAPITAL STOCK COMPANY. Policy No.EY 341 -92-25 Renewal Effective Date From: 09/23/2006 toO9/23/2007 at 12:01 a.m. Standard Time at place of issuance. Producer: 400080 Named Insured: Mariner's General Insurance Mi Rarur, Inc. 2390 Shelter Island Or 2525 Shelter Island Drive #6 Suite #216 San Diego, CA 92106 San Diego, CA 92106 Coverage applies to items below only when amount and limits are specified. Section Coverage Description Limits HULL Agreed Value $2,200,000 A Tender $22,000 6 PROTECTION & INDEMNITY $300,000
Longshoremen's & Harbor Workers compensation insurance as provided fti pubc act 803 of the 69th congress, as amended. Indudes coverage for 2 crew.
Deductible $44,000 $500 N/A
Premium $16,250 Inc. $1,280
C E F
Medical Payments Towin9 Personal Effects Uninsured Boater Fuel Spill Liability
$25,000 $10,000 $22,000 $300,000 $300,000
N/A N/A $250 N/A N/A
Inc. Inc. Inc. Inc. Inc. $1,100 $18,630
r
C H
Endorsements: Nay-i, MAN-S 8-7, CC-i, MAN-i, MAN-2, B-li, 8-12, 8-5, W-2, B-fl, 6-8, MAN-3 TOTAL PREMIUM Description of Vessel: Year Built 1992 Manufacturer: Hatteras Length: 92 ft Model: MIY Name: "Mi Barur" Description of Motors Year Built 1992 Manufacturer: Detroit
P-lull Serial # HATDT30I 1990 Serial# P:
5:
Navigation Limits Warranty: Warranted confined to the use and navigation of coastal waters and tributaries of the Pacific Ocean, not North of Pt. Conception, CA and not south of Rio Santo Tomas, Baja, MX. Nav.# 955
Countersigned: 08/28/2006 M C Taxloc NY
MARITIME GENERAL AGENCY
The declarations page and endorsements attached hereto, are made part of, and attach to, policy form:74 163 7/99
EXHIBIT A-28
110
___________________________
Case 3:08-cv-00443-BEN-POR Document 13-3 Filed 06/20/2008 Page 26 of 43
This Endorsement #: I
Effective: 9/23/2006
Attached To And Forming Part Of Policy #: BY 3419225
Of The: New Hampshire Insurance Co.
Issued To: Mi Barur. luc.
NAVIGATION ENDORSEMENT
In consideration for premiums charged $1100, The navigation warranty of this policy is amended to include Navigation of Coastal Waters and waters tributary thereto, of the Pacific Ocean and Acapulco as far south as 16 Degrees 30 Minutes North Latitude. It is agreed and understood a 2% deductible shall apply while the named vessel is outside US Waters.
All other terms and conditions remain unchanged.
Dated: 8/2 8O06
N' aritime General Agency Endorsement Form: Nay -
EXHIBIT A-29
111
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The terms outlined
below seem tic
and not out of line.
Can yc.
cll
me what the cost would
,`e for the renewal?
it seems to me that the vessel will be onboard Dockwise when it renews on 9/23/01.
should however include behind schedule. the Mexican navigation on the renewal just
We in case Dockwjse is
Henry
From: Michael Terrier Lmailto:Michael.Terrier®Maritimeoeneral Sent: Tuesday. August 26, 2007 8:44 AN To: Henry Medina
.com]
Cc; Michael Terrier Subject; RE: Mi Barur, Inc. #EY341-92-25
I will have to drop the value from $2.2nmm to $l.smm and rewrite the policy upon renewal as this changes the classpolicy number. We will also warrant the insured is listed as an AX on the yacht dealers policy, add a wind deductible, etc.This is also listed as a 1990 in the yacht world listing but is insured as a 1992, the survey lists it as a 1990.
Henry, I see this for sale asking $1,900,000.
pn older Cheoy Lee up for sale, moored in Florida desirable as new business.we would probably pass.
during hurricane
season
is
less
than
I will
get back to you later
this
week with new terms.
Thank you,
Michael Terrier Senior Yacht Underwriter Maritime General Agency 70 Essex Road Westbrook, Ct, 06498 800.366.8086 ext 1619 860.399.3619 direct 860.399.3652 Pax michael. terrier®ntaritimegeneral
* Boat Dealers Marinas Charter Vessels *
- corn
*
*
Yacht Clubs
Boats & Yachts
*
Mega Yachts
*
"`tnstant
On-line
Boat quotes
at www.rnariUrnegeneral.com
From: Henry Medina frnailto:hinedinaemarinersinsurance.com] Sent: tuesday, August 28, 2007 10:36 AM 2
EXHIBITA-30
112
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Page! of!
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Henry Medina
From: Sent: Henry Medina [[email protected] Thursday, September 20, 2007 1:42 PM
Michael Terrier' To: Subject: MiBarur, Inc#QD0062514 Hi Michael, Please issue the renewal policy effective 9/23/2007 at the value of $1,900,000. However the navigation limits must be amended to match the expiring policy #EYS41 -92-25. The vessel will not longer be shipped to Florida, vessel will remain a San Diego, La Paz, Acapulco vessel. Please issue the pofley and advise what the new annual premium is?
Henry Medina
Mariner's General Insurance Group San Diego Office phone 619-226-8661 lax 619-226-6410 hmedinamarinerjurpce,com
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EXHIBIT A -31
AI,AImflAfl
113
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NEW
HsJv1PsHUtE INSURANCE COMPANY
-
S
Doston. Massachusetts
This isa declaration page with Policy Provisions Section A and Endorsements! if any! to issue and form part thereof, completes the below numbered policy of the NEW HAMPSHIRE INSURANCE COMPANY! A CAPITAL STOCK COMPANY. New Policy NoXM 866-5646 Effective Date From: 09/23/2007 toO9/23/2008 at 12:01 am, Standard Time at place of issuance. Named Insured: 400060 Producer: Mi Barur, Inc. Marinees General Insurance 2525 Shelter Island Drive #8 2390 Shelter Island Dr San Diego, CA 92106 Suite #216 San Diego, CA 92105 Coverage applies to items below only when amount and limits are specified. Section Coverage Description Limits $1900000 A HULL Agreed Value Tender $25,000 $300,000 & INDEMNITY B PROTECTION
Longshoremen's & Harbor Workers compensation Insutahice as
provided In public act 503 oft. 69th tongress, as amended.
Deductible $38,000 $500 N/A
Premium $14,060 Inc. $749
Includes ccverage
fur
2 crew.
C E F G
Medical Payments Towing Personal Effects Uninsured Boater Fuel Spill Liability
$10,000 $2,500 $10,000 $300,000 $300,000
N/A N/A $250 N/A N/A
Inc. Inc. Inc. Inc. Inc. $1,050
r
I-I
Endorsements; MAN-5, MAN-6, W-1, Nay-I MAN-2, GC-1, MAN-a, MAN-I, 6-5 TOTAL PREMIUM Description of Vessel: Year Built 1990 Manufacturer Hatteras Length: 92 ft Model: MIt Name: "Mi Barur" Description of Motors Year Built 1992 Manufacturer: Detroit
$15,859
Hull Serial # HATDT3O1 1990
Serlal# F: 3: Navigation Limits Warranty: Warranted confined to the use and navigation of coastal waters and tributaries of the
Pacific Ocean, not North of Pt. Conception, CA and not south of Rio Santo Tornas, Baja, MX. Nav.# 955
Countersigned 09/21/2007
M 0 TaxIoc NY
MARITIME GENERAL AGENCY
The declarations page and endorsements attached hereto, are made part of, and attach to, policy form:BJP 2191-A 8/06
EXHIBIT A -32
114
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TODD & ASSOCIATES, INC.
MARiNE SURVEYORS & CLAIMS SETTLING AGENTS
2390 SHELTER ISLAND DRIVE; SUITE 220
SAN DifiGO, CALIFORNIA 92106
PHONE: 69 226-1895 24 FIR., PHONE 6191224.2394 TELEFAX: 619 223.8947
November 5, 2007 File No.: 07-. 278
Attorney Arsenio Fareil Campa Re: "Mi Barur"
Dear Sefior Fare!:
Thank you
for your continued cooperation regarding the saivage and investigation required by your
insurance company as a result of the unfortunate fire to your vessel "Mi Barur".
As you are aware, the vessel remains were re-floated Wednesday, October31. 2007, and towed by Abbaroa, November 1, 2007, to the haulout facility, where the vessel was hauled from the water and remains.
r
At my last attendance, with your representative, Sr. Ricardo Fernandez, Captain Luis ReDo, and Sr. Poncho Abbaroa present. my instructions for the vessel were clearly communicated through Ricardo to Poncho Abbaroa, as follows: 1. 2. The vessel should be towed to the shipyard, and immediately hauled from the water, Following haulout, fiberglass repairs to the bottom of the vessel should be undertaken to secure the vessel from taking on additional amoutns of water following relaunching.
3, 4. 5,
The shipyard should steam clean the engineroom only, to assist in facilitate Terry Carpenter. who has been engaged by my office to preserve the vessel's main engines and generators. it was agreed that Sr. Abbaroa was to provide all assistance to Mr. Carpenter. Fire Investigator Arthur Murphy is returning to La Paz to complete the Cause & Origin investigationNovember7, 8 & 9,2007. PleaseinstructSignorAbbaroato assistMr. Murphy in all regards, and provide cooperation to facilitate the completion of inspections. Mr. Murphy may require two of the shipyard employees to assist in debris removal. Please communicate to Sr. Abbaroa that nothing is to be disturbed in the hull of the vessel forward of the engineroorn bulkhead.
6.
EXHIBIT A -33
115
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File No.: 07-1273
November 5, 2007 Page 2
7.
Ii is my understanding that your insurance company will reimburse you for the vessel salvage
expenses, haulout and cleaning expenses, following receipt and review of all invoices
provided by you and presented to my office for review. 8, Please instruct Sr. Abbaroa to prepare a separate invoice for the haulout of the vessel, and additional expenses beyond the salvage expense, to include one month in the water storage
at his facility. 9. Following completion of the fire Cause & Origin inspections, anticipated to be completed Friday, November 9, 2007, in the late afternoon, the vessel may be relaunched, and should be stored in the water at the Abbaroa Shipyard.
I appreciate your assistance in communicating to Sr. Abbaroa the need for cooperation and assislance, so that we may complete our requirement for investigations this Friday,
November
9,2007.
Upon presentation of appropriate invoices or expenses associated with the salvage and local investigation expenses, I shall immediately review appropriate documents and present them to your insurance company for reimbursement. I appreciate your continued assistance. Yours truly,
Todd Schwede, A.MS, CPI I, CMI Todd & Associates, Inc. CC: Susan Smith, AIG insurance Geoff Robb TAS/sjh
r
lit SWU c,p..j dii rtpas ijl so WC th& i nThiu S bda of hot I `Iwo' `jut wey is nina.. hO H ,uuobkgn .ni Uds t.pvn insndd'IUL ho una.ni.náng thas nciiJw shill tc .nysatn cn,ijn,ns. ,athtnf do. to naive n.$lr.o. iW,cy. ad `ku any ni ill pail. i,,ianwd in Or nat .ul.aed hashy apt dna rqtln ISO Snis.
1. gJ Aoodi'. ,nd
bt!isMe
is
areiily la,dauIood and agidod iso" nN .4itno,M. is enisis of the ito.! dsrg. mk
-
`ur'ey
Ia
ov 116
EXHIBIT A -33
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October 24, 2007.
TODD & ASSOCIATES, INC.
Marine Surveyors & Claims Settling Agents 2390 Shelter Island Drive ii 220 San Diego, California 92106.
Dear Mr. Todd Schwede:
Through the present one I go to you soliciting from you or somebody of the insurance agency AIG to appear in La Paz Baja California of immediate form, because to remove the boat afloat, they have been seen in the necessity to remove some things that hinder to the divers such as carpets or tapestries, the previous thing by virtue of which you indicated to me the inconvenience to remove any thing, reason for which I require your authorization, or somebody else, which is present in La Paz for the maneuvers before commented.
Combined to the previous thing, also I mention that I have a great number of
problems with the harbor authorities by the problem of the pollution of diesel, reason why I
require the attendance from my insurer in the aid of these problems.
Sincerely,
-
r
LIC: ARSENJO FARELL CAMPA.
EXHIBIT A 34
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November 5, 2007.
MR. TODD SCHWEDE Present
Dear Mr. Schwede:
Today I have received a telephone call from my Captain Luis RelIc to inform me that the shipyard of Mr. Abaroa had concluded the works and that the boat could be put again afloat or be left on dry dock. Mr. Abaroa asked Mr. Carpenter what they wanted to do with the boat, and Mr. Carpenter cannot answer whether if the boat stays afloat or on
dry dock, therefore, I beg you to tell us what to do with the vesseL understanding that you commented that once I took the boat out, she would be under your custody and as of the
present day, Mr. Carpenter does not know what to do with the boat. It should be pointed out that if the boat remains afloat without surveillance, there would be people starting to sleal parts of her, on the other side you also commented that once the boat was on dry dock,
the expenses should be at your account, and if the boat remains more days in Mr. Abaroas
yard, such
expenses shall be invoiced to the subscribed, therefore, I beg you to define what
would you like to do with the vessel. Waiting for your instructions, I remain, Sincerely, Attorney Arsenjo Farell Campa
C*5 F-' TOGa iCi'WGDC-Ait
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Page 2 of 3
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Geoff Prom: Henry Medina [mailto:[email protected] To: [email protected]
sent: Friday, March 07, 2008 12:51 PM
Cc: [email protected]; `Beatriz Pineda' Subject: M/Y Mi Uarur, Claim # 3513.31
Mr. Robb,
Thank you for responding so quickly to my email of March 5, 2005 It's very unfortunate that this claim may turn into a Bad Faith suit
I
purchased an All Perils Yacht Policy on Good Faith from New Hampshire Insurance Company. SUnless there is actual proof of any wrong doing' Again, I'm not an attorney but as I read Mr. Murphy's report on page 13 he states did you start the fire' and again page 35 in his conclusion states arson and Captain Rello being the last to leave the vessel. As for Mr. Murphy's alleged comments perhaps it was a misunderstanding due to the English/Spanish communications. However I did not misunderstand Todd Schwede when he stated to me "Henry New Policy, less the 30 days old, total loss, Mexican, he did it" I took that as a joke, perhaps I misunderstood and it was the intention of New Hampshire Insurance Company not to pay this claim from the start.
Did I misunderstand you, when you told me "The Mexican's started the savage hours before Terry Carpenter arrived' Mr. Carpenter is only a mechanic per Mr. Murphy's report, why was he in charge of the savage? The vessel sat in the water for days before she was raised any evidence from the Fire Origin was contaminated by the water and air elements Murphy's report is not valid, Also reading this report it appears to me someone else
trust you understand our position
which as an Insurance Agency we must stand by our client as they have
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influenced the writing of this report. Mi Barur, Inc. is entitled to full payment of $1,900,000 Hull and Machinery Agreed Hull Value per the All Perils Yacht Policy and payment for Personal Property subject to a $250 deductible for what ever personal items where still onboard the Yacht Again this policy is an All Perils Policy which includes coverage for any type of fire. Unless you can prove this was Intentional set by the owner who has not financial gain by doing this or his captain, we expect full payment to be expedited. Sincerely,
MARINERS Cl HAl. GRouj
.%i
IM1lF.ASC
Henry Medina
Mariners General Insurance
2390 Shelter Island Drive, #216 San Diego, CA 92106 Phone: 619-226-8661
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EXHIBIT A -36
37/2008
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Henry Medina
From:
Sent:
Geoffrey Robb grobb©gibsonrobb.com] Friday, March 07, 2008 10:17 AM
`Henry Medina' To: Subject RE: MY MI Barur,
Claim 3513.31
Dear Mr. Medina, Thank you for your input. I will forward your email to underwriters for review. I have been advised that the insured has hired counsel, and I think it best that fbrther ccimnrnnications about the claim be directed through counsel. However, I will take this opportunity to respond to a couple of your points regarding Mr. Muqhy and his report. I checked Mr. Murphy's report and did not see where he has concluded that Captain Rello started the fire. He has found that the fire was intentionally set, and noted, among other fmd.ings, that Captain Relic was the last to leave the boat. As far as Mr Murphy's alleged comments that the freezer motor in the Captain's stateroom was the cause, I would be very surprised if an expert of his caliber would make such a statement on the scene. Perhaps Captain Relic and Mr. Fernandez misunderstood some comment. My understanding is that Mr. Murphy photo documented his inspection, so I must presume that he has photos of what he looked at. I can discuss with underwriters making his photos available for inspection if requested. Fortunately, to my knowledge, no inspected contents of the boat have been destroyed. So, if Captain Rello or the insured believe that the freezer motor caused the fire and if the insured intends to investigate the cause, the motor should still be available for inspection. it is very important that the insured give notice to underwriters of any disposition or inspection ofthe boat or its contents,
I am confident that underwriters will consider any evidence demonstrating that the cause of the fire was
accidental and not arson. Please let me know if I can be a further assistance. Best Regards.
Geoff
From: Henry Medina [mailto: [email protected]]
Sent: Wednesday, March 05, 2008 8:49 AM
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To: [email protected] Subject: M/Y MI Barur, Claim # 3513,31 Dear Mr. Robb,
EXHIBIT A -37
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Fire Cause Analysts
INC.
Page 36 of 43
A DIVISION OF FT
CURRICULUM VITAE DONALD J. PERKINS
Fire Cause Analysis 935 Pardee St. Berkeley, CA 94710 Business: Fax: 510 649-1300 510 649-3099
ofSpecialization:
Fire Investigation/Litigation
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Area
Case File Review - Consulting
Backg.round and Professional Experience:
Mr. Perkins' background consists of education/technical training and over 40 years of professional experience. He had worked in a major municipal fire department for 28 years and retired in 1994 at the rank of Captain. As a Fire Suppression Captain, Mr. Perkins worked on shift for over ten years. He was assigned to both Engine and Truck Companies at Battalion Headquarters in one of the busiest fire stations in San Jose, California. He was Incident Commander on numerous fires over the course of his career. Mr. Perkins also held the position of Fire Investigator 2 years and Arson Unit Supervisor / Investigator for 4 years. During this time frame he conducted or supervised over 3,000 fire investigations. Mr. Perkins was also assigned to the San Jose Fire Prevention Bureau for over six years working
in code enforcement, plan checking, and fire protection systems inspections. Mr. Perkins met the standards and successfully passed his tests to be qualified as a Certified Fire Protection Specialist. He recently completed the Wildland Fire Origin & Cause Determination certification class presented by the US Forest Service. Mr. Perkins founded the firm Fire Cause Analysis in 1980 and merged his company with IFT Inc. in 1993. In addition to conducting his own investigations, he presently manages a team of highly qualified fire investigators. Mr. Perkins has conducted or supervised over 4,000 fire investigations and has over 30 years experience in fire/arson investigations with commercial and residential property, vehicle and marine vessels, arson and fraud, and has given expert witness testimony in both State and Federal Courts.
Offices: San Francisco Bay Area sacramento Valley southern California Phoenix. Arizona
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935 PARDEE STREET BERKELEY, CA. 94710-2623 USA Fax: 5J0.649.3O9
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Mr. Perkins is a certified Level II Fire Investigator through the California State Fire Marshal's Office. He is also Certified by the International Association of Arson Investigators IAAI. In July, 2005 he met the certification standards established for a Type 3 Wildland Fire Investigator developed by the National Wildland Coordinating Group. He is a licensed Private Investigator in California, Nevada, and Arizona. He has a "Lifetime Teaching Credential" in the State of California and teaches the basic and advanced curriculum in Fire/Arson Investigation as directed by the California State Fire Marshal's Office. Mr. Perkins has taught students enrolled in the Fire Science Program at local colleges as well law enforcement personnel at the Criminal Justice Training Center in San Jose. Mr. Perkins has been a guest speaker and lecturer for the California Association of Arson Investigators and the International Association of Arson Investigators. Mr. Perkins was a member on the IAAI Certified Fire Investigators CFI Committee for three years and chaired the "IAAI Testing Committee" which writes the national certification test CFI for fire investigators. Mr. Perkins is a "co-author" on the LkAI Development Committee for the NFPA document "User's Manual for NFPA 921". Mr. Perkins was a project team member and contributed to the document "Performance of California Homes and Buildings in Urban Wildland Interface", a grant provided to Fire Cause Analysis by the California State Fire Marshal's office.
Page2
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Education/Training/Special Seminars:
San Jose City College, San Jose, California 1972 Associate of Arts Degree: Fire Science
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West Valley College, Saratoga, California - 1975 Associate of Arts Degree: Business Management Alcohol, Tobacco & Firearms Glenco, Georgia -Advanced Arson for Profit - 1985 California Fire Academy Asilomar, California Fire Investigations IA, IB, 2A, 2B California Fire Academy Asilomar, California Fire Instructor - IA, lB California Fire Academy - Asilomar, California Incident Command Tactics I, II, III F.B.I. Academy Quantico, Virginia - Police/Arson School - 1986 F.B.I. Bomb Investigations Gilroy, CA - Seminar National Fire Academy -Emmitsberg, Maryland Fire/Arson Investigation School - 1979 National Fire Academy Emmitsberg, Maryland - Fire/Arson Detection Instructor - 1982 National Fire Academy -Emmitsberg, Maryland Courtroom Testimony Facilitator - 2001
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Advanced Fire Investigation Denver Fire Department - 1981 Arson/Bomb Scene Investigation - Calif. State Fire Marshal's Office 1978 Determining the Cause and Origin of Fires & Explosions - NAFI 1990
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"_
International Association of Arson Investigators-Annual Seminar's 07, 06, 05, 04, 03, 02, 00, 99, 97, 95, 93, 91, 89, 88, 87 Dynamics of Fire Behavior - Factory Mutual Fire Test Facility IAAI 10/93 Investigation of Large Loss Fires in Commercial & Industrial Buildings IAAI 4/94 Fire Dynamics / Live Burn Training Seminar IAAI / ATF / NIST - 3/2000 California Conference of Arson Investigators Workshops 1979 -2005 Electrical Fire Investigations - San Francisco, California - Seminar - 1982 San Jose Police Department Crime Scene Investigator School 1984 California Department of Justice - Sacramento, California Criminal Analysis 1983 California Department of Justice Sacramento, California - Surveillance Techniques - 1986 Santa Clara County Peace Officers School, Post Certified 1976 Third International Conference on Fire Research and Engineering 10/99 Fire Scene Photography - San Francisco, California - Kodak - 1980 Fire Scene Photography Santa Clara, California - Nikon 1985 Fire Protection Institute - Houston, Texas - Fire Marshals of North America 1992 Fire and Materials Conference Fire Investigations San Francisco, California 2007 Electrical Fire Investigations in Residential Dwellings Seminar - 4/94 Advanced Concepts in Fire Investigation Seminar 1/93 Electrical & Gas Appliance Fire Investigation Seminar 1995 Marine Casualty Investigations School - United States Coast Guard 1985 California Fair Claims Settlement Practices Regulations 1993 / 1995 / 1997 / 1999 Introduction to Industrial and Commercial Fire Protection Engineering - UC Davis 12/94 Kinesic Interview Techniques San Jose, California 1989 Hazardous Materials Familiarization Seminar - 11/80 Certificate of Achievement in Firemanship - 6/71
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Education/Training/Special
SeminarsCont.:
Explosive Ordnance Reconnaissance / Sabotage Device - 4/69 Public Agency Training Council - Electrical Fire Investigation 12/01 Fire and Materials 2003 Conference SF- Fire Cause Investigations 1/03 NWCG - Wildland Fire Origin & Cause Determination FI-210 7/05
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Professional Experience:
Fire Cause Analysis A Division of IFT Inc., Berkeley, California
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1993 to Present
VICE PRESIDENT / PARTNER / SENIOR FIRE INVESTIGATOR Fire Investigator with the responsibility of directing and managing eight highly qualified fire investigators. Work closely with the insurance industry providing additional services in all fire related disciplines including Computer Modeling, Fire Testing, Fire Safety Consulting, Mechanical & Electrical Engineering and Forensic Studies.
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Fire Cause Analysis, San Jose, California
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1980 to 1993
OWNER / FIRE INVESTIGATOR Licensed Private Investigator working closely with the insurance industry in handling fire cause investigations and consultation work.
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San Jose Fire Department, San Jose, California
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1967-1994
FIREFIGHTER - SUPPRESSION / DRIVER - ENGINEER / FIRE PREVENTION OFFICER / FIRE INVESTIGATOR - 1978-1980/ CAPTAIN 1980-1994/ Retired 2/4/94
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San Jose Fire Department, San Jose, California 1984 to 1988
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UNIT SUPERVISOR - ARSON UNIT - Supervised and managed a staff of five fire investigators. Conducted and supervised over 3,000 investigations. Testified as an expert witness in Municipal and Superior Courts in both Criminal and Civil Cases. Campbell Fire Department, Campbell, California FIREFIGHTER - SUPPRESSION United States Navy, 1961-1965 Torpedoman 2' Class, Qualified in Submarines United States Coast Guard Reserve, 11th Coast Guard District - 1980 to 1989 Marine Safety Office, Investigations Unit Conducted
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