F & S OFFSHORE v. Serv. MacH. & Shipbuilding

430 So. 2d 1167
CourtLouisiana Court of Appeal
DecidedApril 5, 1983
Docket82 CA 0572
StatusPublished
Cited by21 cases

This text of 430 So. 2d 1167 (F & S OFFSHORE v. Serv. MacH. & Shipbuilding) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
F & S OFFSHORE v. Serv. MacH. & Shipbuilding, 430 So. 2d 1167 (La. Ct. App. 1983).

Opinion

430 So.2d 1167 (1983)

F & S OFFSHORE, INC. and Intervenors, INA, et al.
v.
SERVICE MACHINE & SHIPBUILDING CORPORATION, et al.

No. 82 CA 0572.

Court of Appeal of Louisiana, First Circuit.

April 5, 1983.

*1168 John T. Nesser, III and Henry A. King, Milling, Benson, Woodward, Hillyer & Pierson, New Orleans, for plaintiff and thirdparty defendant, Robert Thompson.

Robert E. Winn, Sessions, Fishman, Rosenson, Snellings & Boisfontaine, New Orleans, for third-party plaintiff, "Alco Power, Inc. (Alco)"

George M. Gilly and Winston E. Rice, Phelps, Dunbar, Marks, Claverie & Sims, New Orleans, for intervenors, Insurance Co. of North America, et al.

Jacob J. Amato, Jr., Gretna, for Reinjes of Homeln/F.R. of Germany, third-party defendant.

Malcolm W. Monroe and Daniel A. Smith, Deutsch, Kerrigan & Stiles, New Orleans, for Harlan Ins. Agency, third-party defendant.

Herbert H. Duncan, Jr. and Andrew Reed, Aycock, Horne, Caldwell, Coleman & Duncan, Morgan City, Risley C. Triche, Triche, Sternfels & Nail, Napoleonville, for Service Mach. & Shipbuilding Corp.

Before COVINGTON, EDWARDS and LANIER, JJ.

LANIER, Judge.

This is a suit in contract and tort by F & S Offshore, Inc. (F & S)[1] against Service Machine & Shipbuilding Corporation (Service), Fireman's Fund Insurance Company (Fireman's), and Alco Power, Inc. (Alco) for breach of contract, breach of warranties, negligence and faulty workmanship arising out of the construction of two ocean towing vessels seeking damages totaling $1,053,500 for cost of repairs and loss of revenues. Service and Fireman's answered the petition and filed third party demands against Alco, Robert Thompson, Reintjes of Homeln/F.R. of Germany, Home Insurance Company, Harlan of Louisiana, Inc. and Captain John Trosclair. Alco answered the petition and filed a third party demand against Service seeking indemnification and/or contribution. Insurance Company of North America, St. Paul Mercury Insurance Company, Royal Indemnity Company, National Surety Corporation, Citadel Insurance Company, and Philip Alan Froude as representatives of various underwriters at Lloyd's of London intervened seeking reimbursement *1169 of $150,000 which they paid F & S for claims made under F & S's marine hull insurance policy. Prior to trial, Home Insurance Company and Reintjes of Homeln/F.R. of Germany were dismissed on motions for summary judgment.

The trial court rendered judgment in favor of Service, Fireman's and Alco and dismissed the claims of F & S and the intervenors. F & S and the intervenors took this suspensive appeal. Service, Fireman's and Alco answered the appeals to preserve their rights of indemnification and/or contribution asserted in their third party demands.

FACTS

The general facts of this case are set forth in the trial court's excellent reasons for judgment, in pertinent part, as follows:

"On April 16th, 1974, F & S entered into a contract with Service Machine wherein defendant agreed to construct two (2) one hundred and thirty-six feet (136') by thirty-four feet six inch (34'6") steel ocean towing vessels in accordance with plans and specifications for a total price of four million seven hundred fifty-one thousand six hundred and fifty-eight dollars ($4,751,658.00). The vessels referred to in this contract were later named the CAPTAIN JOHN and the CAPTAIN CRAIG and were equipped with Alco Model 251, sixteen cylinder heavy duty marine diesel engines and Reintjes Model WAB 3400 reduction gears, which were purchased by Service Machine from Alco. The total cost of the Alco supplied package was four hundred ninety-one thousand six hundred and fifty-four dollars ($491,654.00) per vessel.
"In accordance with the F & S/Service Machine contract, Service Machine furnished performance bonds in favor of plaintiff with Fireman's Fund Insurance Company serving as surety. The bonds were in the amount of two million three hundred seventy-five thousand eight hundred and twenty-nine dollars ($2,375,829.00) for each vessel and basically secured Service Machine's performance of this contract.
"The basic design of the vessels was prepared by Mr. Y.A. Mok, an independent naval architect employed by Service Machine. Representatives of F & S, Alco and the A.B.S.,[[2]] as well as Service Machine's personnel were all present during the construction of the vessels, including the vessels' sea trials and dock trials. "The CAPTAIN JOHN was delivered by Service Machine to F & S during April, 1976. On April 30th, 1976, the CAPTAIN JOHN was dispatched to the North Sea in anticipation of performing oil service related work. While en route to the North Sea, the vessel experienced lube oil consumption problems, and as a result, Mr. James Philyaw of Alco accompanied Robert Thompson of F & S to Bermuda to attend aboard the vessel. Although some loose flanges were noted in the lube oil system, no welding was required. After completion of the inspection, the vessel sailed on towards the North Sea. "Upon reaching the North Sea, the CAPTAIN JOHN was assigned the task of towing a barge owned by Brown and Root from the North Sea back to the United States. This tow got underway on May 25th, 1976, and after calls at the Ports of Brest, France and El Ferro, Spain, the flotilla began its North Atlantic passage on June 16th, ultimately bound for New Orleans. At approximately 1300 hours on the afternoon of June 17th, 1976, the vessel lost the service of the turbocharger of her starboard main propulsion plant. This required that the barge be placed under tow by the M/V MISTER CHARLIE on June 19th, whereupon the CAPTAIN JOHN set sail for Puerto Delgada, Azores for repairs. A representative of Geveke Motoren en Grondverzet (hereinafter referred to as `Geveke') travelled to the Azores to meet the CAPTAIN JOHN and effect repairs to the turbocharger, which was completed on June 24th.
"On June 28th, 1976, the CAPTAIN JOHN made rendevous with the M/V *1170 MR. CHARLIE and the Brown and Root barge and once again took the barge under tow. On July 3rd, 1976, there was further trouble with the starboard main engine, which had to be shut down. The flotilla then continued under power only of the port main propulsion plant until arrival of the M/V ROBIN V off the Bahamas on the morning of July 11th. After the ROBIN V hipped up to the CAPTAIN JOHN, the flotilla continued its voyage towards New Orleans, but on the afternoon of July 11th, off the mouth of the Mississippi River, the turbocharger of the port main engine of the CAPTAIN JOHN also failed, and the CAPTAIN JOHN and the barge both had to be towed into port. At New Orleans, the CAPTAIN JOHN was towed to the facilities of Algiers Iron Works on the right descending bank of the Mississippi River for repairs. These repairs were accomplished between July 13th and July 18th, and on July 19th the CAPTAIN JOHN once again set sail for the North Sea. The vessel arrived at Great Yarmouth, England on August 6th, 1976, and after a round trip voyage to Peterhead, Scotland, it was idle at Great Yarmouth from August 21st until September 29th. From September 29th until October 11th, it worked with the Derrick Barge SARITA in the Hewett Field.
"The CAPTAIN JOHN worked with the Barge HERCULES from October 15th until October 19th, 1976, and from October 21st until October 31st, it worked with the Elf Norge Barge MORLAND NO. 3 in the Fregg Field out of Stavanger, Norway.

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Bluebook (online)
430 So. 2d 1167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/f-s-offshore-v-serv-mach-shipbuilding-lactapp-1983.