Shipyard Counter-claim Not Nullified by Insurance

Monday, April 19, 2004
The U.S. Court of Appeals for the Fifth Circuit ruled that the counter-claim of a shipyard defending an allegation of poor workmanship is not nullified by a provision in the ship repair contract requiring each party to have insurance. In the instant case, plaintiff ship owner contracted for defendant shipyard to make modifications to its ship. Six weeks after the ship was redelivered, it caught fire and sank. Plaintiff owner sued defendant shipyard, alleging the fire was the result of poor workmanship, but eventually lost. Defendant counter-claimed for the cost of defending the lawsuit. With regard to the counter-claim, plaintiff asserted that, since the contract required both parties to have insurance and to indemnify the other from claims and liabilities, it was not liable for defendant’s litigation expenses. On appeal, the court held that since the contract did not require each party to name the other as an ‘additional insured’ under the mandated insurance policies and did not provide that the mandated insurance was to provide primary coverage for damages, the indemnity provision allowed the non-negligent shipyard to recover its defense costs from the ship owner. Marquette Transportation Co. v. Louisiana Machinery Company, Inc., No. 02-30949 (5th Cir., April 16, 2004).
Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

‘Blue Queen’ on First Mission

The platform supply vessel 'Blue Queen', an ULSTEIN PX121 design, was named at Ulstein Verft on Friday 27 February. The ship will be working in the spot market.

US, Australian, Indonesian Navies Commemorate Battle of Sunda Strait

Senior officials from the United States, Australia and Indonesia paid their respects to the crews of USS Houston (CA 30) and HMAS Perth (D 29) during a wreath laying ceremony March 1,

USS Jason Dunham Enters U.S. 6th Fleet

The Arleigh Burke-class guided-missile destroyer USS Jason Dunham (DDG 109) entered U.S. 6th Fleet’s area of operations in support of U.S. national security interests in Europe March 3, 2015.

Tanker Trends

Shipping Industry Faces Shake Up

As global shipping grapples with its worst downturn in 30 years, private equity firms are unwinding massive bets made on the sector in a move set to accelerate

Vessel Sales: February 2015

Vessel sales for February 2015  - (as of March 1) as prepared by Shipping Intelligence, Inc., New York.   Date Reported - Vessel Name - DWT - Built -  - (Age)

Oil Storage at Sea Stalls as Profit Play Fades

Traders are cutting plans to use tankers to store oil at sea as the price incentive recedes, the global head of oil at mining and commodities group Glencore's said on Tuesday.

 
 
Maritime Careers / Shipboard Positions Maritime Security Offshore Oil Pipelines Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1566 sec (6 req/sec)