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In an unpublished opinion, the U.S. Court of Appeals for the Fifth Circuit ruled that insurers are not obligated to reimburse a shipyard for the cost of repairs made to ships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 March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

Russian Navy Take Over Crimea Combat Dolphins

The combat dolphin program in the Crimean city of Sevastopol will be preserved and redirected towards the interests of the Russian Navy, according to a report by official news agency RIA Novosti.

Transas to Participate in ETC-2014

Transas will take part in the ETC-2014 – The second International Forum on Seafarers’ Education, Training and Crewing. The Forum which consists of the Conference

World Petroleum Congress to be held in Moscow

Deputy Prime Minister of the Russian Federation, Arkady Dvorkovich, has confirmed that the 21st World Petroleum Congress will be held in Moscow from 15 – 19 June 2014.

Ship Repair & Conversion

Crewman Claims Ferry Captain "Rushed Back To Bridge"

The captain of a South Korean ferry that capsized two days ago rushed back to the bridge after it started listing severely and tried in vain to right the vessel,

TEPNG Integrates AVEVA Engineering & Design

AVEVA announced that TOTAL E&P Nigeria Ltd. (TEPNG) has adopted AVEVA’s Engineering & Design solutions as part of an Integrated Engineering & Design approach. TEPNG

ClassNK Approves Fillet Welding Consumable

Classification society ClassNK announced that it has granted type approval for the new MX-200F welding consumable, developed by Kobe Steel Co., Ltd. (KOBELCO) to

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.0667 sec (15 req/sec)