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Admiralty Law Keyed to Maraist
Marathon Pipe Line Co. v. Drilling Rig Rowan/Odessa
Citation:
761 F.2d 229 (1985)Facts
The ROWAN/ODESSA, a jack-up drilling vessel owned by Rowan Companies, was being towed across an oil pipeline owned by Marathon Pipeline Company on the Outer Continental Shelf when a leg of the vessel ruptured the pipeline. Marathon undertook repairs using hydrocouples manufactured by HydroTech Systems, Inc. Four days after installation, the hydrocouples failed during testing due to a manufacturing defect, requiring Marathon to use a more conventional repair method. This failure added four days to the repair time at a cost of $47,080 per day, totaling $188,320 in additional expenses. Marathon sued Rowan for all repair costs, and the district court found Rowan solely liable. While the appeal on liability was pending, Rowan filed a third-party demand against HydroTech seeking indemnity for the expenses attributable to the hydrocouple failure. Rowan and Marathon eventually settled, with Rowan paying for all repair expenses including those related to the hydrocouple failure. The district court dismissed Rowan’s third-party claim against HydroTech as time-barred.
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