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In an unpublished opinion, the U.S. Court of Appeals for the Fifth Circuit ruled that insurers are not obligated to reimburse a shipyard for the cost of repairs made to ships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 August 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

Jinhai Heavy Industry Secures Another Invention Patent

Jinhai Heavy Industry of China has received patent rights for its large ship superstructure hoisting method after a state intellectual property review. The patent rights is for twenty years.

BMT ARGOSS Awarded OHSAS 18001

BMT ARGOSS, an operating company of BMT Group Ltd. has been awarded the universally recognized standard for occupational health and safety, BS OHSAS 18001. BMT ARGOSS,

There’s Still Time for SHIPPINGInsight Award Entries

Entry submissions for the first SHIPPINGInsight Award are due Friday, Aug. 1, but organizers said they will continue to accept nominations through following week to provide some extra time.

Ship Repair & Conversion

Great Lakes Shipyard Wins EPA Drydock Contract

Great Lakes Shipyard has been awarded a contract for the United States Environmental Protection Agency (EPA) vessel R/V Lake Explorer II. The scope of work will include drydocking,

Fugro Achieves Innovation through Integration

When Aberdeen-based Diamond Offshore wanted to add new functionality to the existing helideck monitoring system on the Ocean Guardian drilling rig in the North Sea,

Refurbished Seajacks Vessels Leave Shipdock Amsterdam

Seajacks Leviathan and Seajacks Kraken are prepared for their coming assignments, following a series of repair and renewal jobs by Shipdock Amsterdam. The shipyard,

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair 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: 0.1104 sec (9 req/sec)