Trinity Files Form 8-K Update to Barge Litigation

Tuesday, October 15, 2002
In an update to previously disclosed litigation in their inland barge business group, Trinity filed a Form 8-K noting that another lawsuit had been filed involving barges valued at approximately $14 million. The text of the Form 8-K follows: The following is an update to the issues raised in a previously reported lawsuit filed against the Company and a coating manufacturer by Florida Marine Transporters, Inc., a tank barge customer, seeking recovery of damages related to corrosion problems with eighteen barges purchased from the Company's subsidiary, Trinity Marine Products, Inc. The company has been advised that J. Russell Flowers, Inc. (JRF), a barge leasing customer of Trinity Marine, has filed a lawsuit against Trinity Marine, the Company, the coating manufacturer, and a distributor of coating products that raises issues similar to the earlier filed lawsuit. An officer of JRF is also a board member of Florida Marine Transporters, Inc. The value of the barges in the recently filed lawsuit is claimed to be $13,977,578. The lawsuit also seeks punitive damages of $100,000,000. During 1997-2000, JRF purchased and accepted delivery of 56 hopper barges built by Trinity Marine, which are used to transport grain and aggregates. Recently, Trinity Marine inspected six JRF barges. Inspection of these barges revealed early stages of corrosion in a few of the void areas. At the time of the inspections, the Company's inspectors found corrosion causing conditions within the void areas, including evidence of standing water, sludge, silt, trash and other foreign materials. In the void areas where only moist and humid conditions existed, the inspectors found normal coating conditions. This confirms the results of the Company's field inspections of other barges. To date, Trinity Marine's experts have inspected over six million square feet of barge void spaces. An investigation by outside experts of the technical claims presented by JRF have found those claims to be without merit. As of this date, the Company has found there is no scientific basis for the assertion that the coating material is a food source for bacteria, or is causing or contributing to corrosion. Although the ultimate resolution is uncertain, management believes, based on this data, the effect of this litigation and issues raised by the litigation on the Company's financial position and results of operations will not be material for financial reporting purposes. "We have spent a great deal of resources investigating issues raised by these two lawsuits and feel the claims are clearly not based in fact," Trinity said through a spokesperson.
Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Company Fined for Oil Spill Near Anacortes

Ecology issues $112,500 penalty for sunken vessel.   American Gold Seafoods faces a $112,500 penalty for an oil spill caused by the accidental sinking of its vessel,

London Shipping Professionals Weigh in for SPNL Report

The Shipping Professional Network London (SPNL) has  released their full Future London report, an initiative that gathered the views and opinions of London’s young

Update: U.S. to Seize Kurdish Oil from Tanker off Texas

U.S. authorities are set to seize a cargo of oil from Iraqi Kurdistan anchored off the Texas coast after a judge approved a request from Baghdad, raising the stakes

Ship Repair & Conversion

Bollinger Fourchon: 13 Years Without a Lost Time Accident

Bollinger Shipyards, Inc. announced that their Bollinger Fourchon, L.L.C. facility has worked 13 years without a lost time accident. Building on a philosophy that starts at the top,

Combat Cold Corrossion via Condition Monitoring

Parker Kittiwake explains why frequent condition monitoring is the most effective measure in combating the recent cold corrosion phenomenon The recent trend in

Hyde Marine, Goltens Enter Engineering Agreement

Hyde Marine, Inc., announced today it has launched an agreement with Goltens Green Technologies division to help shipowners determine how to best fit the chemical

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Pod Propulsion Port Authority Ship Electronics Ship Repair 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: 0.1018 sec (10 req/sec)