Great Lakes Announces Favorable Judgment in Dredge New York Claim
March 15 2012 - 4:01PM
Business Wire
Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD), the
largest provider of dredging services in the United States and a
major provider of commercial and industrial demolition and
remediation services, today announced a favorable judgment in its
loss of use claim related to the dredge New York allision in Port
Newark, New Jersey in January, 2008.
On January 24, 2008, our backhoe dredge the New York was struck
by an orange juice tanker, the Orange Sun, in the approach channel
to Port Newark, New Jersey, sustaining heavy damage including a
large rupture in her port side. After the incident, the Company
filed a complaint against the Orange Sun and her owners (the
“Orange Sun Interests”) for salvage and pollution damages, physical
repairs and associated labor costs, and loss of use. Claims for
salvage and pollution damages, physical repairs and most of the
associated labor costs were settled in previous years. The
remaining claims, including the Company’s claim for loss of use,
were tried in a bench trial in the United States District Court in
the Southern District of New York from January 23-25, 2012. On
March 1, 2012, the judge issued an opinion and order in the
Company’s favor on the loss of use claim, entitling Great Lakes to
$11.7 million in damages plus interest. Judgment was rendered in
the aggregate amount of $13.2 million.
The dredge New York is a hydraulic backhoe dredge built
primarily for the New York market, with world class capabilities.
The New York is one of the biggest and most powerful vessels of its
kind in the world. It is one of the flagships of our fleet, and
once the New York was back in service after the allision it worked
steadily on several projects in the Ports of New York and New
Jersey. As previously announced, after the New York completes the
contracts it is currently working on, it will relocate to Australia
for two and a half years to work on the Wheatstone LNG Project.
Kathleen M. LaVoy, Chief Legal Officer stated, “We are very
pleased with the outcome and expect the judgment to be affirmed on
appeal, leading to an eventual final award. The judgment finally
allows Great Lakes to recover some of the lost profits we sustained
and validates the significance of the dredge New York to the Great
Lakes’ fleet and the robust demand for her unique services.”
The Company
Great Lakes Dredge & Dock Corporation is the largest
provider of dredging services in the United States and the only
U.S. dredging company with significant international operations.
The Company is also one of the largest U.S. providers of commercial
and industrial demolition services primarily in the Northeast. The
Company owns a 50% interest in a marine sand mining operation in
New Jersey that supplies sand and aggregate for road and building
construction and a 50% interest in an environmental service
operation with the ability to remediate soil and dredged sediment
treatment. Great Lakes employs over 150 degreed engineers, most
specializing in civil and mechanical engineering, which contributes
to its 122-year history of never failing to complete a marine
project. Great Lakes has a disciplined training program for
engineers that ensures experienced-based performance as they
advance through Company operations. Great Lakes also owns and
operates the largest and most diverse fleet in the U.S. industry,
comprised of over 200 specialized vessels.
Cautionary Note Regarding
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking" statements as defined in Section 27A of the
Securities Act of 1933 (the "Securities Act"), Section 21E of the
Securities Exchange Act of 1934 (the "Exchange Act"), the Private
Securities Litigation Reform Act of 1995 (the "PSLRA") or in
releases made by the Securities and Exchange Commission (“SEC”),
all as may be amended from time to time. Such forward-looking
statements involve known and unknown risks, uncertainties and other
important factors that could cause the actual results, performance
or achievements of Great Lakes and its subsidiaries, or industry
results, to differ materially from any future results, performance
or achievements expressed or implied by such forward-looking
statements. Statements that are not historical fact are
forward-looking statements. Forward-looking statements can be
identified by, among other things, the use of forward-looking
language, such as the words "plan," "believe," "expect,"
"anticipate," "intend," "estimate," "project," "may," "would,"
"could," "should," "seeks," or "scheduled to," or other similar
words, or the negative of these terms or other variations of these
terms or comparable language, or by discussion of strategy or
intentions. These cautionary statements are being made pursuant to
the Securities Act, the Exchange Act and the PSLRA with the
intention of obtaining the benefits of the "safe harbor" provisions
of such laws. Great Lakes cautions investors that any
forward-looking statements made by Great Lakes are not guarantees
or indicative of future performance. Important assumptions and
other important factors that could cause actual results to differ
materially from those forward-looking statements with respect to
Great Lakes, include, but are not limited to, risks associated with
Great Lakes’ leverage, fixed price contracts, dependence on
government contracts and funding, bonding requirements and
obligations, international operations, government regulation,
restrictive debt covenants and fluctuations in quarterly
operations, and those factors, risks and uncertainties that are
described in Item 1A of its Annual Report on Form 10-K for the year
ended December 31, 2011, and in other securities filings by Great
Lakes with the SEC.
Although Great Lakes believes that its plans, intentions and
expectations reflected in or suggested by such forward-looking
statements are reasonable, actual results could differ materially
from a projection or assumption in any forward-looking statements.
Great Lakes' future financial condition and results of operations,
as well as any forward-looking statements, are subject to change
and inherent risks and uncertainties. The forward-looking
statements contained in this press release are made only as of the
date hereof and Great Lakes does not have or undertake any
obligation to update or revise any forward-looking statements
whether as a result of new information, subsequent events or
otherwise, unless otherwise required by law.
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