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In an unpublished opinion, the U.S. Court of Appeals for the Fifth Circuit ruled that insurers are not obligated to reimburse a shipyard for the cost of repairs made to ships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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter March 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

Voice-data Communications and HDTV in One System

PDQ’s OneSource System provides long range cell, wi-fi and high definition TV in one system for mobile users.   San Diego wireless company PDQ Connect has developed

Cavotec, ABB Partner on Shore-to-ship Power

Cavotec and ABB have signed a Memorandum of Understanding to jointly offer complete shore-to-ship power solutions globally. Such solutions allow vessels to plug

Ulstein Verft's First Wind Service Vessel Launched

Shipbuilder Ulstein Verft has launched its first vessel within the renewable energy segment, and also the first with the newly-developed X-STERN hull line design.

Ship Repair & Conversion

Korean Shipbuilders Maintain Top Ranks, Despite Troubles

Korea's 'Big Three' shipbuilders are still the world's three biggest by order backlog, despite their troubled management, according to data from UK-based Clarkson Research Services.

Whale-watching Catamaran Repowered by Volvo Penta

When it came time to replace the old engines in his whale-watching vessel, Capt. Joe Nazar chose Volvo Penta and has enjoyed the benefits of improved fuel efficiency,

SPS Deck Reinstatement for Canadian Fishing Vessel

IE has repaired the deck of a Ueushuk Fisheries Ltd owned fixed gear vessel, the Atlantic Optimist.  The existing steelwork on board the vessel was badly corroded,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Salvage Ship Repair Ship Simulators
rss | archive | history | articles | privacy | 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: 0.1013 sec (10 req/sec)