Frichelle Ltd. v. Master Marine, Inc.

99 F. Supp. 2d 1337, 2000 A.M.C. 2329, 2000 U.S. Dist. LEXIS 8382, 2000 WL 777162
CourtDistrict Court, S.D. Alabama
DecidedJune 7, 2000
DocketCiv.A. 97-0541-AH-S
StatusPublished

This text of 99 F. Supp. 2d 1337 (Frichelle Ltd. v. Master Marine, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frichelle Ltd. v. Master Marine, Inc., 99 F. Supp. 2d 1337, 2000 A.M.C. 2329, 2000 U.S. Dist. LEXIS 8382, 2000 WL 777162 (S.D. Ala. 2000).

Opinion

MEMORANDUM OPINION AND ORDER

HOWARD, Senior District Judge.

This matter came on for trial before the Court on February 7-11, 2000. Excerpts from several depositions were submitted to the Court following presentation of live testimony, which excerpts the Court has reviewed, as well as all exhibits introduced as evidence. The Court heard closing argument on May 18, 2000. The record is now closed and the case ripe for resolution. For the reasons that appear below, the Court finds that the defendant is entitled to judgment in its favor on the claims of the plaintiffs and on its counterclaim.

PARTIES AND CLAIMS

The present controversy arises out of a casualty that occurred in July 1994 to the M/Y SHANGO (hereinafter, “the vessel”) while in dry dock at the facilities of the defendant Master Marine, Inc. (hereinafter, “Master Marine”). The vessel is owned by the plaintiff Frichelle Ltd. (hereinafter, “Frichelle”), which carried hull insurance with the plaintiffs Certain Underwriters at Lloyd’s, London and Certain Insuring Companies Subscribing to Master Yacht Cover No. Y0015989R (hereinafter, “Certain Underwriters”).

Certain Underwriters paid Frichelle $835,000 in full settlement of its claim for damage to the vessel, and Certain Underwriters seeks to recover in excess of $900,-000 from Master Marine. Frichelle, conceding that it has been made whole by its insurers for damage to the vessel, seeks instead to recover over $3,000,000 for loss of charter hire. Master Marine seeks to recover from Frichelle the sum of $25,995 as additional sums due and owing as a result of work performed on the vessel by Master Marine in July 1994, plus interest, costs and attorney’s fees.

FINDINGS OF FACT

The SHANGO is a fiberglass motor sail-er built in 1976 by Cheoy Lee Shipyard, Ltd, Hong Kong. The vessel was originally built and classed according to the Lloyd’s Register of Shipping (Cross of Malta 100 A. -1) and was designed to meet Lloyd’s standards for such classification as they then existed.

Frichelle is a British entity that purchased the vessel sometime prior to March 1992. The vessel is Frichelle’s only asset. Alfredo Beracasa (“Beracasa”) purchased the shares of Frichelle in March 1992. The majority of the shares of Frichelle are held by Beracasa.

Frichelle purchased the vessel for $900,-000 and invested several hundred thousand dollars in the vessel. Frichelle placed hull insurance with Certain Underwriters, with the September 3, 1993 cover note indicating the vessel and all her appurtenances were valued at $1,260,000.

*1339 Master Marine is an Alabama corporation engaged in ship repair and new construction. It is regularly employed by the United States Coast Guard, United States Navy and others to dry dock and repair various types of vessels, including fiberglass vessels. Master Marine uses two floating dry docks to raise vessels from the water. To raise a vessel using the subject dry dock, its wing tanks are flooded so as to sink the dock; the vessel to be raised is maneuvered into the dock and pumps are activated to de-water the tanks and lift the dock and the vessel.

Keel blocks are heavy wooden timbers that are spaced at intervals underneath a vessel’s keel to bear the weight of the vessel to be lifted. Master Marine uses cables attached to cleats or bitts on the vessel deck for the purpose of keeping the vessel level and preventing it from listing to port or starboard as it is lifted and afterwards. After the dry dock is fully raised, Master Marine places bilge blocks along the turn of the vessel’s bilge or chine areas, a total of two pairs of bilge blocks. Master Marine uses keel blocks to support the weight of the raised vessel. It uses cables and bilge blocks, not to support the weight of the vessel but to secure it from tipping or listing.

Prior to a Coast Guard or Navy vessel being lifted by Master Marine, a dry docking plan must be prepared by Master Marine and reviewed by a professional engineer. Coast Guard or Navy officers then review the dry docking plan before giving their approval for the lift to proceed. Master Marine lifts government vessels the same way it lifts private vessels, and it lifts fiberglass vessels, both government and private, the same way it lifts steel and wooden vessels.

The vessel has eight tanks. Tanks No. 1 through 7 consist of a pair of tanks each, port and starboard. Beginning at the bow, Tanks No. 1, 2 and 3 are not used. Tanks No. 4 and 5 are used for fuel, and Tank No. 6 is used for water. Tank No. 7 consists of two wing tanks that accept fuel from other tanks. Tank No. 8 is used for dry storage only. The outboard edge of the fuel and water tanks is the vessel hull. Tanks No. 4 and 5 have a combined total capacity of approximately 21,000 to 22,000 gallons. Tank No. 6 has a capacity of 6,000 gallons. Tank No. 7 has a capacity of 2,200 gallons.'

The vessel has two inboard longitudinal bulkheads and two outboard, or swash, bulkheads. She also has a number of transverse bulkheads. In addition, she has a number of fiberglass stringers or stiffeners, both longitudinal and transverse, that provide rigid backing and are intended to support the hull. • These stiffeners were installed as part of the original manufacture of the vessel. The stiffeners and bulkheads were attached to the hull with a “secondary bond.” A secondary bond is required when the fiberglass has already cured so that a primary bond (in which a subsequent laminate can polymerize at a molecular level to the previous laminate) cannot be accomplished. While a primary bond is chemical in nature, a secondary bond is in the nature of a mechanical attachment similar to glue.

In approximately 1991 or 1992, certain portions of the stiffeners, primarily in the port No. 4 tank, debonded. Measured in linear feet, the debonded members represented approximately 4.1% of the total length of the stiffeners and bulkheads. The tank was not subsequently gas-freed, and the damage went undetected prior to the July 1994 casualty.

The vessel was first dry docked at the Master Marine facility in April 1994. She was dry docked using Master Marine’s normal procedure outlined previously. At the time of the dry docking, and throughout the time she was in dry dock, she carried approximately 4,500 to 5,000 gallons of fuel. She remained dry docked without incident for approximately one month.

. The April 1994 dry docking was for the purpose of allowing Master Marine to in *1340 stall an owner-furnished bow thruster unit and to clean, sandblast and paint the vessel with owner-furnished anti-fouling paint. During the April 1994 dry docking, representatives of Master Marine discovered approximately 200 previously patched areas of the hull, as well as numerous blisters, some of which were weeping. Captain Wager had wanted a barrier system applied to seal out moisture on the exterior hull. However, a manufacturer’s representative tested the vessel with a moisture meter and stated that the vessel was “too wet” to guarantee the product, which was not applied.

After being refloated, the vessel remained at the Master Marine facility until June 24,1994 so that the captain and crew could perform miscellaneous jobs on the vessel. The vessel then sailed to Pensacola and from there to Key West.

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Bluebook (online)
99 F. Supp. 2d 1337, 2000 A.M.C. 2329, 2000 U.S. Dist. LEXIS 8382, 2000 WL 777162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frichelle-ltd-v-master-marine-inc-alsd-2000.