McDermott, Inc. v. AmClyde

Facts

The Plaintiff, McDermott, Inc., purchased a 5,000 ton crane from the Defendant, AmClyde. When the Plaintiff first used the crane in an attempt to move an oil and gas production platform from a barge to structural steel base affixed to the floor of the Gulf of Mexico, a prong of the crane’s main hook rose, causing massive damage to the deck and the crane itself. The malfunction may have been caused by the Plaintiff’s negligent operation of the crane, the Defendant’s faulty design or construction of the crane, by a defect in the hook supplied by River Don, or by one or more of the three companies that supplied the steel slings. The Plaintiff brought a negligence action against the Defendant, River Don, and the three steel sling companies, seeking recovery for damages for both the deck and the crane. The Plaintiff later settled with the three companies that supplied the steel slings. The settlement stated that in exchange for $1 million, the Plaintiff agreed to dismiss its claim against the sling companies and to release them from all liability for either deck or crane damages, and to indemnify them against any contribution action.