Guam – Guam Shipyard has filed a lawsuit in Guam District Court against 2 insurance companies for non-payment of damages the shipyard suffered in the sinking of its dry dock known as “Big Blue.”
The dry dock was partially submerged after employees left hatches open during a High Surf Advisory on January 2 of this year. The dry dock was finally raised in March.
Guam Shipyard claims damages of $6,881,043.02 and an additional $394,321.38 that Guam Shipyard spend on environmental mitigation efforts.
The suit alleged “wrongful denial of coverage” and “unlawful conduct” on the part of Zurich American Insurance Company and Starr Indemnity & Liability Company.
The 2 firms denied Guam Shipyards claim on April 19th in a complaint filed in California’s Northern District Court in San Francisco.
Among the reasons that they denied coverage are:
* Guam Shipyard’s U.S. Navy certification expired on October 31, 2010.
* the dry-dock, “Big Blue” was “un-seaworthy” on October , 2010.
* Guam Shipyard has not established that the sinking of “Big Blue” was the result of any of the named perils insured against under the policy.