Bollinger Shipyards is seeking sanctions against the U.S. Justice Department for what it says is a failure to provide key documents in the government's civil suit against the Lockport firm. The government's suit, filed in July 2011, charges that Bollinger, under Coast Guard contract to increase the length of eight patrol boats, delivered vessels that were unseaworthy. New Orleans...
Bollinger Shipyards is seeking sanctions against the U.S. Justice Department for what it says is a failure to provide key documents in the government's civil suit against the Lockport firm.
The government's suit, filed in July 2011, charges that Bollinger, under Coast Guard contract to increase the length of eight patrol boats, delivered vessels that were unseaworthy.
New Orleans federal Judge Sarah Vance has scheduled a hearing on Bollinger's filing July 10, but that date is expected to be pushed back a week after the Justice Department asked for more time to respond, and Bollinger's lawyers didn't object.
In its filing, Bollinger lawyers said the Justice Department failed to meet several deadlines for submitting information on how it calculated damages, making it impossible for Bollinger to "independently evaluate" the government claims.
"To the extent the United States is permitted to continue its foot-dragging, Bollinger's ability to defend itself will be hindered, and it appears that only a strong sanction will deter future intransigence by the United States," Bollinger said in its court submission.
It is also asking that the government be required to cover Bollinger's legal costs.
Specifically, Bollinger is asking Vance to throw out $39 million in damages claimed by the Justice Department as a result of what it said was Bollinger's failure to deliver seaworthy vessels. Under federal law, the Justice Department says it is entitled to triple damages, or nearly $120 million.
Bollinger is not attempting to throw out a Justice Department demand in its 2011 suit that the Coast Guard be repaid for the $80 million it said it paid Bollinger to increase the length of the patrol vessels.
In addition to the cost of the repair work, the Justice Department is seeking reimbursement from Bollinger for the lost value of the "unseaworthy" patrol boats. In addition, the Justice Department had sought recoupment of costs to replace the eight unseaworthy vessels in Coast Guard operations.
The Coast Guard said it had to double up the use of other boats, assigning two crews to each patrol boat to 4,000 hours per year, instead of the normal 2,000. This increased the maintenance costs in 2010 to $9.6 million, while eight identical vessels, not pressed into double duty, required $1.6 million in maintenance, the Coast Guard said.
Initial plans
called for lengthening 49 113-foot patrol boats, which were also set to be
outfitted with new equipment and electronics. That effort was scrapped in 2005
after the hull buckled on the first restructured cutter delivered by Bollinger,
the Matagorda. A subsequent Coast Guard investigation concluded that the company had
overstated the longitudinal strength of the hull. Eight boats were provided, the Coast Guard said, but none was useable.