Insurer Not Liable for Yard Repairs Beyond Warranty period

Friday, September 12, 2003
In an unpublished opinion, the U.S. Court of Appeals for the Fifth Circuit ruled that insurers are not obligated to reimburse a shipyard for the cost of repairs made to ships when the defects were not discovered during the warranty period. In the instant case, the shipyard built four lift boats. The contracts included a warranty and an obligation to repair and replace defects discovered within 180 days of delivery. The insurers provided coverage for the shipyard for, among other things, sums that the shipyard became legally obligated to pay under its contracts. Cracks were discovered in the jack-up legs approximately three years after delivery.

The cracks were found to have been caused by faulty welds by the shipyard. The shipyard repaired the jack-up legs and filed claims for reimbursement with the insurers, who then brought a declaratory judgment action. The court held that, while there may have been good business reasons for the shipyard standing behind its work well beyond the warranty period, the insurers were justified in refusing to reimburse the shipyard for such repair work. XL Specialty Insurance Company v. Bollinger Shipyards Lockport LLC , No. 02-30387 (5th Cir., September 10, 2003). (Source: HK Law)

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f

Technip & Fluor Bag RAPID UIO Project

Technip, in a joint venture with Fluor, was awarded an engineering, procurement and construction management contract by PRPC Utilities and Facilities Sdn. Bhd.

Gazprom to Counter Negative Global Market Trends

The Gazprom Board of Directors took note of the information on the Company's financial strategy under the conditions of negative trends in the global financial

Ship Repair & Conversion

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Mitsubishi Super Skiving System

Mitsubishi Heavy Industries, Ltd. (MHI) has completed development of the "Mitsubishi Super Skiving System" for machining internal gears with high speed and outstanding precision.

Messer to Debut MetalMaster Xcel

Messer Cutting Systems said it has answered the call from manufacturers that have been demanding a faster, more accurate way of producing cut parts. Messer’s

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Pipelines Port Authority Salvage Ship Simulators 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: 0.0774 sec (13 req/sec)