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…