Disputed design defects

A naval architect designed a motor vessel for a yard. Two vessels were built following the design.

After the vessels were built and delivered to their respective owners, various deficiencies were noted. The yard alleged that the deficiencies stemmed from negligent design. The yard repaired the vessels, as they were obliged to do under the warranties they had provided. They then sought to recover the costs of the work from the naval architect.

A claim of US$ 120,000 per vessel was presented. Following advice from an expert the naval architect’s position looked promising. There were many unfounded allegations as well as claims in regards to defects which were not within the naval architect’s remit, for example problems with piping supplied by the yard.

With detailed technical assistance from the naval architect and the appointed expert, ITIC was able to successfully negotiate with the yard a settlement of US$ 35,000 in respect of both vessels.