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 Today


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

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

Legal

Portugal PM Warns Lisbon Dock Workers to End Strike

Portugal's prime minister warned Lisbon dock workers on Friday that his patience was running out after a strike that has lasted a month, paralysing the city's ports.

Gender Identity Spat Sinks Spending Bill

The rancorous political debate over sexual identity unexpectedly prompted the Republican-controlled House of Representatives to rejected an energy and water spending

Hercules Offshore Filing for Bankruptcy Again

Hercules Offshore Inc said it planned to file for prepackaged Chapter 11 bankruptcy, just six months after the rig contractor emerged from bankruptcy protection.

Tanker Trends

A Year is a Long Time in Tankers

The latest Gibson Market Report focused on the age profile of the VLCC fleet and the prospects for trading life beyond 15 years of age.    Analysis of the Suezmax fleet shows a similar picture,

Strike In France: Implications for Tanker Demand

After the oil industry suffered from a severe drought in Venezuela, forest fires in Canada and rebel attacks on oil installations in Nigeria, it is now facing

Floating Storage Flattens Fortunes of $50 Crude

The prices of WTI and Brent crude briefly rose above $50/bbl during intraday trading on Thursday, the highest level seen since the end of July 2015, giving traders a brief moment of optimism,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Simulators 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: 0.0666 sec (15 req/sec)