The dispute traces back to the grounding of the tank vessel T/V Margara in Puerto Rican waters, an incident that posed a substantial threat of an oil discharge and damaged coral reefs and associated marine resources. The United States, acting on behalf of the Coast Guard and the National Oceanic and Atmospheric Administration, filed suit in December 2021 under the Oil Pollution Act, seeking to recover damages already paid out of the Oil Spill Liability Trust Fund as well as the cost of restoring the injured reefs. Ernst Jacob was named alongside his insurer, Shipowners Insurance and Guaranty Company, known as SIGCo. The Commonwealth of Puerto Rico’s Department of Natural and Environmental Resources joined the case as an intervenor in late 2022, asserting claims under federal and local environmental laws.
