SHIPPING & MARINE | Staff Reporter, Singapore

ST Marine gets letter of claim for supposed breach of contract

Louis Dreyfus Armateurs is claiming approximately S$64m for damages.

The marine arm of ST Engineering has been issued a letter of claim by the lawyers of Louis Dreyfus Armateurs in respect of the shipbuilding contract for the Roll-on/Roll-off Passenger ferry (Ropax Contract) contracted in July 2007 for a contract price (inclusive of variation orders) of approximately S$179m.

As set out in the Claim, LDA is claiming a sum of S$4.8m in respect of liquidated damages for delay in delivery and an aggregate sum indicated as approximately Euro 33.03m for unliquidated damages arising from ST Marine’s purported breach.

ST Marine said LDA’s purported termination of the Ropax Contract is a breach and ST Marine itself has terminated the Ropax Contract on the basis of LDA’s breach and accordingly has reserved all its rights in the matter.

The company is taking legal advice on the Claim and intends to dispute it. If liable, ST Marine’s total liability under the terms of the Ropax Contract is capped at 10% of the contract price.

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