Puerto Rico Drydock & Marine Terminals, Inc. v. M/V Sydfors
Puerto Rico Drydock & Marine Terminals, Inc. v. M/V Sydfors
Opinion of the Court
MEMORANDUM
This cause came on to be tried in December 1981. At the conclusion of the trial on December 11, 1981, the Court entered its Findings of Facts and Conclusion of Law from the Bench. The Court also required counsel for the parties to submit post trial briefs dealing with the validity of a so called “Red Letter Clause” contained in an itemized bill which the Court found had indeed been presented to defendant Sunrise Shipping, Inc. The Red Letter Clause reads:
In case of defective workmanship of material, our liability is limited strictly to the correction of such defects discovered and reported to us in writing within thirty (30) days from the completion of the work.
Because the Court concluded that the work done by plaintiff on the vessel M/V Sydfors had been done defectively and had prox
In this particular case, however, it being clear to the Court that the work was improperly performed and was so demonstrated not only in the testing of the vessel before delivery to the owner, but also in the malfunction and the mishap which occurred on the vessel’s voyage immediately after it left plaintiff’s dock. It is clear also that it was not until many months after the acceptance of the vessel that Sunrise Shipping, Inc., complained in writing to plaintiff about the improper repairs. The Court stands on its Finding that there was some brief complaint by telephone a few days after the ship left plaintiff’s drydock. Admittedly, that complaint by telephone did not satisfy the “Red Letter Clause”. Nonetheless, considering the problems defendant Sunrise Shipping, Inc., suffered as a result of the work improperly done, and the cost to have it corrected, the Court is of the opinion that it would be highly inequitable to reward plaintiff for poor workmanship by entering judgment in plaintiff’s favor for the unpaid amount of the bill.
The “Red Letter Clause,” the failure to mitigate its damages and the failure by competent proof to properly establish its
Judgment on the complaint and on the counterclaim will be entered in accordance with the foregoing, the parties to bear their respective costs and attorneys fees.
Reference
- Full Case Name
- PUERTO RICO DRYDOCK & MARINE TERMINALS, INC. v. M/V SYDFORS, her engines, boilers, tackle, etc. in rem and SUNRISE SHIPPING, INC., in personam
- Status
- Published