Case 3:14-cv-08109-JAP-LHG Document 1 Filed 12/30/14 Page 1 of 5 PageID: 1

BLANK ROME LLP

William R. Bennett, III, Esq.
The Chrysler Building
405 Lexington Avenue
New York, New York 10174-0208
Telephone: (212) 885-5000
Attorneys for Petitioner
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY - NEWARK
FRANK MONTECALVO, as owner of the M/Y
WASTE KNOT,

Civ.

Petitioner,
and
ACE AMERICAN INSURANCE COMPANY,

PETITION TO COMPEL
ARBITRATION

Respondent.

Petitioner FRANK MONTECALVO, as Owner of the M/Y WASTE KNOT

(Petitioner), by its attorneys Blank Rome, LLP, complaining of the above-named Respondent
ACE AMERICAN INSURANCE COMPANY (ACE or Respondent), alleges upon
information and belief as follows:
NATURE OF THE ACTION
1.

This is a proceeding pursuant to the Federal Arbitration Act, 9 U.S.C. 1 et seq.,

to compel Respondent ACE to arbitrate a dispute arising under a contract of marine insurance,
which requires arbitration of any controversy or claim arising out of or relating to the policy in
accordance with the CPR Institute for Dispute Resolution Rules for Non-Administered
Arbitration.
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JURISDICTION AND VENUE

2.

This action is within the Courts admiralty and maritime subject matter

jurisdiction pursuant to 9 U.S.C. 1333, and is within the meaning of Rule 9(h) of the Federal
Rules of Civil Procedure, because the matter involves a contract of marine insurance.
3.

This Court also has subject matter jurisdiction under 28 USC 1331 because the

matter involves a federal question under the Federal Arbitration Act, 9 U.S.C. 1, et seq.
(FAA) and The Convention on the Recognition and Enforcement of Foreign Arbitral Awards,
21 U.S.T. 2517, T.I.A.S. No. 6997, 330 U.N.T.S. 38 (1970), implemented by 9 U.S.C. 201 et
seq. (the New York Convention).
4.

Venue is proper in this District pursuant to 28 U.S.C. 1391 because Respondent

ACE is subject to personal jurisdiction in this District and a substantial part of the events giving
rise to the claim occurred in this District.
THE PARTIES
5.

At all material times, Petitioner Frank Montecalvo was and now is a resident of

the State of New Jersey and brings this petition as the present owner of the M/Y WASTE KNOT
(the Vessel).
6.

At all material times, Respondent ACE was and now is a corporation duly

organized and existing under the laws of the State of Pennsylvania, with its principal place of
business in the State of Pennsylvania.
FACTS
7.

Mr. Montecalvo is the owner of the Vessel, a 2005 56-foot long Carver 560

Voyager called the WASTE KNOT.

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8.

ACE issued one or more written insurance policies to Mr. Montecalvo with

respect to the Vessel whereby ACE would insure Mr. Montecalvo against certain losses under
the terms of a Recreational Marine Insurance Yachtsman Policy for the period May 9, 2012 to
May 9, 2013. Said insurance policy bears the policy number Y0677366A (the Policy).
9.

The Arbitration Clause in the aforementioned Policy provides for the settlement

of any and all disputes related to the Policy by arbitration. Specifically, the Arbitration clause
reads as follows:
ARBITRATION: Any controversy or claim, whether based on
contract, tort, statute or other legal or equitable theory . . . arising
out of or related to this policy . . . shall be referred to and settled by
arbitration in accordance with the then current CPR Institute for
Dispute Resolution Rules for Non-Administered Arbitration and
this provision.
This arbitration shall be governed by the
Convention on the Recognition and Enforcement of Foreign
Arbitral Awards, implemented at 9 U.S.C. 201-2-8 . . . The
arbitration shall be held in the state appearing in your address
contained upon the Declaration Page and in accordance with the
following procedure . . . .
10.

The Vessel was damaged as a result of Hurricane Sandy in October 2012 during

the applicable policy period.

11.

On May 25, 2014, after several requests, ACE finally provided Mr. Montecalvo

with the Damage Appraisal report prepared by Alcus Marine Technical Services, Inc.
(AMTS).
12.

The AMTS Damage Appraisal represents that AMTS estimates that the cost to

repair the Vessel is $270,488.09.

13.

Acting as a prudent insured, Mr. Montecalvo retained the services of TMS to

perform a damage appraisal. The inspection and subsequent report prepared by TMS estimates
the cost to repair the Vessel is $578,675.72.
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14.

The parties could not agree on the cost of repairs, so by letter dated December 9,

2014, Mr. Montecalvo requested pursuant to the terms and conditions of the Policy that the
dispute regarding the cost of repairs be arbitrated.
15.

ACE retained counsel and counsel for the parties communicated with each other

regarding conducting a joint survey and arbitrating the dispute but no agreement was reached.
16.

To date, ACE refuses to arbitrate the dispute. A reasonable time has elapsed since

demand to submit to arbitration was made upon ACE.

REQUEST FOR RELIEF
17.

Petitioner repeats and realleges each and every allegation in paragraphs 1 through

16 as if set forth in full herein.

18.

The agreement to arbitrate in the Policy is enforceable by this Court under the

Federal Arbitration Act, 9 U.S.C. 1 et seq., which authorizes this Court, upon this Petition, to
enter an Order directing that arbitration proceed in the manner provided for in the arbitration
provision of the Policy.

Petitioner therefore seeks a declaration that Respondent ACE is

obligated to arbitrate in New Jersey and order thereon pursuant to 9 U.S.C. 4.

19.

Petitioner reserves its claim for its reasonable attorneys fees and costs incurred in

making this Petition, and in seeking an order appointing an arbitrator and an order compelling
Respondent ACE to participate in New Jersey arbitration, and granting such other and further
relief as may be just in the premises.
WHEREFORE, Petitioner Frank Montecalvo, as Owner, of the M/Y WASTE KNOT,
prays that in accordance with the provisions of the Federal Arbitration Act, this Honorable Court
(i) enter an order appointing an arbitrator; and

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(ii) grant the relief requested herein compelling Respondent ACE to arbitrate Petitioners
claims in accordance with the arbitration provision of ACEs marine insurance Policy; and
(iii) grant Petitioner such other and further relief as the Court may deem just and proper.
Dated:

New York, New York

December 29, 2014
Respectfully submitted,
BLANK ROME LLP
Attorneys for Petitioner
By: /s/ William R. Bennett, III
William R. Bennett, III
The Chrysler Building
405 Lexington Avenue
New York, New York 10174-0208
Telephone: (212) 885-5000

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