Lloyd's Maritime Law Newsletter
Sea Byte Inc v Hudson Marine Management Services Inc – US Court of Appeals (11th Circuit) (Barkett and Fay Ct JJ and Trager DJ) – 20 April 2009
Contract – Coral reef damaged by vessel – P&I Club entering into lump sum contract with marine environmental company to repair damage to reef – Contract containing provision for automatic termination in event of severe weather – Whether contract terminated automatically – Whether P&I Club in breach of contract – Quantum of damages and of quantum meruit
On 26 March 2004 the vessel
Eastwind ran aground on an underwater coral reef just off the Fort Lauderdale coast. The vessel’s P&I Club (Miller) arranged for Hudson
Marine Management Services Inc, a “marine environmental casualty management corporation” to restore the grounding site. Miller
and Hudson entered into a “Time and Materials” contract for the restoration of the reef. Hudson was to be compensated on a
time and materials basis at specified rates, plus reimbursement for specified expenses at cost plus 15%. Hudson subcontracted
with Sea Byte Inc to carry out the restoration work.