San Juan Cruise Port sues insurers and MSC over Pier 3 damage

The lawsuit alleges negligence, breach of contract and bad faith insurance practices after the MSC Meraviglia collision.
The San Juan Cruise Port (SJCP) has filed a lawsuit against Hartford Underwriting Agency Limited, MSC Cruises S.A., and Willis Towers Watson Northeast Inc., alleging negligence and breach of contract after the MSC Meraviglia cruise ship caused extensive damage to Pier 3 on April 11.
According to the complaint filed in the U.S. District Court for the District of Puerto Rico, the ship’s docking resulted in “catastrophic damage to the structure, including fractured pile caps, cracked prestressed piles and misalignment of BD2.”
The lawsuit claims that “the damage was catastrophic and immediate, distinguishing it from slow deterioration or long-term structural fatigue.” Federal Judge Aida M. Delgado-Colón is presiding over the case.
The dispute escalated when Hartford, SJCP’s insurer, denied coverage for the incident. SJCP argues that the denial was improper and based on an “ambiguous” exclusion clause. Hartford cited the Pre-Existing Damage Clause, which excludes coverage for “any loss or damage directly or indirectly caused by, resulting from, or contributed to, by any pre-existing damage to buildings, property, jetties, wharves, or handling equipment.”
SJCP contends that this exclusion does not apply to sudden, accidental events such as the collision, stating that “the allision with the MSC Meraviglia was the proximate and dominant cause of the loss.” The lawsuit also claims that “any pre-existing conditions alleged by Hartford were immaterial to the catastrophic failure of the structure.”
Allegations of bad faith, negligence
In addition to breach of contract, SJCP accuses Hartford of bad faith insurance practices, alleging that the insurer “failed to promptly and thoroughly investigate SJCP’s claim,” “misrepresented policy provisions to justify its denial of coverage ” and “unreasonably delayed resolution of SJCP’s claim.”
The lawsuit also targets Willis Towers Watson, SJCP’s insurance broker, for failing to properly negotiate and clarify the policy’s terms. The complaint alleges that Willis “allowed the pre-existing damages exclusion to be expanded without proper clarification” and “failed to adequately review and negotiate the policy language.” As a result, SJCP argues, it was left exposed to Hartford’s denial of coverage.
SJCP further holds MSC Cruises responsible, claiming that the company was negligent in docking the MSC Meraviglia at Pier 3. The complaint alleges that the vessel’s crew “failed to properly account for the vessel’s size and momentum,” leading to excessive speed and impact. It also claims MSC did not use available tug assistance, assess weather conditions or ensure proper communication between the bridge and dockside personnel.
SJCP is seeking compensation for repair costs, business interruption losses and punitive damages against Hartford for alleged bad faith practices. It also demands MSC be held liable for property damage and financial losses resulting from the incident.
The damage to Pier 3 has disrupted cruise schedules in San Juan. Royal Caribbean’s Symphony of the Seas has skipped the port since November due to ongoing repairs, and Disney Cruise Line’s Disney Treasure canceled its planned visit on Feb. 5, after the berth was declared unavailable. According to Cruisehive, no suitable alternative berths were available, forcing a last-minute itinerary change.
Major vessels, including Carnival Cruise Line’s Carnival Celebration, Princess Cruises’ Sky Princess, Holland America Line’s Nieuw Amsterdam, and Viking Cruises’ Viking Sea, continue using the remaining berths.