Michael E. Haglund, OSB No. 772030

email: mhaglund@hk-law.com

Eric J. Brickenstein, OSB No. 142852

email : j stellmon@hk-law.com

HAGLUND KELLEY LLP

200 SV/ Market Street, Suite 1777

Portland, OR 97201

Phone: (503)225-0777

Facsimile: (503) 225 -1257

Attorneys for Plaintiff

UNITED STATES DISTRICT COURT

DISTRICT OF OREGON

PORTLAND DIVISION

MULTNOMAH YACHT REPAIR, L.L.C., an

Oregon limited liability company,

Plaintiff,

PAGE 1 - FIRST AMENDED COMPLAINT IN

REM AND IN PERSONAM

Case No.: 14-cv-01687-SI

FIRST AMENDED COMPLAINT IN

REM AND IN PERSONAM

Haglund Kelley LLP

200 SW Market Street, Suite 1777

Portland, OR 97201

Tel: (503) 225-0777 / Fax: (503) 225-1257

PLI 2--44 I 43

TUG POWHATAN, her engines, tackle,

and equipment; SAUSE BROS. OCEAN

ADMTRALTY (28 U.S.C. $ 1333)

TO\ryING CO.o INC., an Oregon co{poration,

CUMMINS, INC., doing business as

CUMMINS NORTH\ilEST,

Defendants

Plaintiff brings this claim under the admiralty jurisdiction of this Court in rem against the

defendant TUG POWHATAN, her engines, tackle, apparel and equipment, and in personam

against defendant Sause Bros. Ocean Towing Co., Inc., alleging as follows;

Case 3:14-cv-01687-SI Document 46 Filed 03/04/16 Page 1 of 7
1. Plaintiff Multnomah Yacht Repair, L.L.C., an Oregon limited liability company

doing business as Commercial Marine Power Systems, is engaged in the business of yacht repair

and the installation and repair of marine power systems for commercial vessels.

2. The TUG POV/HATAN is a 96.8-foot twin diesel screw ocean-going tugboat that

was, at the time the original complaint was filed, lying afloat on navigable waters within the

District of Oregon.

3. Defendant Sause Brothers Ocean Towing Co., Inc. (Sause Bros.) is an Oregon

corporation and at all material times was the owner and operator of the TUG POWHATAN.

4. Defendant Cummins, Inc. (Cummins) is an Indiana corporation doing business in

Oregon under the assumed business name of "Cummins Northwest." Cummins, Inc. is engaged

in the business of selling and servicing industrial engines including marine engines.

FIRST CLAIM FOR RELIEF

(Federal Maritime Lien Act)

(Against Sause Bros.)

5. Plaintiff reallege paragraphs I through 4.

6. In March, 2073, defendant engaged the plaintiff to perform engine overhaul work

on the engines of the TUG POWHATAN. Plaintiff issued work order number l4l4 in

connection with the engine overhaul work requested by defendant.

PAGE 2 _ FIRST AMENDED COMPLAINT IN

REM AND IN PERSONAM

Haglund Kelley LLP

200 SW Market Street, Suite 1777

Portland, OR 97201

Tel: (503) 225-0777 I Fax: (503) 225-1257

PLl 2--44 I 43

Case 3:14-cv-01687-SI Document 46 Filed 03/04/16 Page 2 of 7
7. Between March 23,2013 and April 27,2013, plaintiff performed engine overhaul

work and other repair work requested on the TUG POWHATAN by defendant in Portland,

Oregon. The total labor, parts and shop supplies supplied by plaintiff to defendant in connection

with the engine overhaul and other repair work on TUG POV/HATAN totaled 538,722.09,

8. Following completion of the engine overhaul and other work specified by

defendant, plaintiff issued its invoice dated April 21, 2013 totaling$38,722.09 for the work

performed on the TUG POWHATAN.

9. Despite demand, defendant has failed to pay plaintiff's invoice.

10. The engine overhaul and other repair work performed by plaintiff on the TUG

POWHATAN are "necessaries" within the meaning of the Federal Maritime Lien Act,46 U.S,C.

$ 971, and constitute a maritime lien against the TUG POV/HATAN.

I 1. Pursuant to the terms of the contract between plaintiff and defendant as set out on

work order number 1474, plainfiff is entitledto 9o/o interest on the $38,722.09 invoice from April

21,2013 until paid.

SECOND CLAIM FOR RELIEF

(Tortious Interference with Economic Relations)

(Against Cummins)

12. Plaintiff realleges paragraphs I through 4.

13. In March 2013, plaintiff and defendant Sause Bros. entered into a contract under

which plaintiff was engaged to perform engine overhaul work on the engines of the TUG

POWHATAN. As part of that work, plaintiff sought to order a variety of parts from defendant

PAGE 3 _ FIRST AMENDED COMPLAINT IN

REM AND IN PERSONAM

Haglund Kelley LLP

200 S\ry Market Street, Suite 1777

Portland, OR 97201

Tel: (503) 225-0777 I Fax: (503) 225-1257

P LI 2--44 I 43

Case 3:14-cv-01687-SI Document 46 Filed 03/04/16 Page 3 of 7
Cummins that were necessary to complete the engine overhaul work on the Cummins engines

aboard the TUG POV/HATAN.

14, Defendant Cummins intentionally interfered with the contract between plaintiff

and defendant Sause Bros. by falsely stating that certain Cummins parts needed for the engine

overhaul were not readily available without long lead times and by calling Sause Bros.

management and falsely stating that plaintiff was not qualified to perform engine overhaul work

on Cummins engines.

15. The false statements by Cummins to plaintiff regarding parts availability and to

Sause Bros. regarding plaintiff's engine overhaul capabilities were made for the improper

purpose of causing Sause Bros. to terminate its engine overhaul contract with plaintiff and to

shift that work to defendant Cummins.

16. Defendant Cummins' improper and false statements had their intended effect.

Sause Bros. terminated its engine overhaul contract with plaintiff, shifted that work to Cummins

by contracting directly with Cummins and relegated plaintiff to a minor role providing support to

Cummins and changing out the crankcase ventilation system.

17. As a result of the termination of plaintiff's engine overhaul contract with Sause

Bros., plaintiff suffered lost profits of approximately $ 130,000 that would have earned had

plaintiff performed the engine overhaul contract for Sause Bros.

PAGE 4 _ FIRST AMENDED COMPLAINT IN

REM AND IN PERSONAM

Haglund Kelley LLP

200 SW Market Street, Suite 1777

Portland, OR 97201

Tel: (503) 225-0777 I Fax: (503) 225-1257

PLI 2--44 I 43

Case 3:14-cv-01687-SI Document 46 Filed 03/04/16 Page 4 of 7
18. In connection with performing its engine overhaul contract with Sause Bros.,

defendant Cummins failed to properly install multiple injectors or installed defective injectors,

which then caused a catastrophic failure of the port engine when the TUG POV/HATAN sailed

from Portland for Coos Bay on April2l,2013.

19. The severe combustion problems that developed in the port engine on April 21,

2013 resulted in serious damage to that engine's fuel injectors, pistons, cylinders, cylinder liners,

turbo chargers, air coolers and associated equipment. Following that incident, Cummins was

engaged by Sause Bros. to investigate the cause of the damage that occurred during the voyage

from Portland and to repair that damage.

20. Despite the fact that the cause of the damage to the port engine was the fault of

Cummins by installing defective injectors or failing to properly install injectors, Cummins

blamed plaintiff for the port engine damage, claiming that plaintiff improperly installed Racor

crankcase ventilation systems on the port and starboard engines. In fact, the damage to the port

engine was the fault of Cummins.

21. Cummins' false statements blaming plaintiff for the damage to the port engine

were made for the improper purpose of damaging plaintiff and its reputation. As a result of

defendant Cummins'false statements, plaintiff has suffered a long term loss of valuable business

with Sause Bros. and significant damage to its reputation throughout the relatively small

maritime industry in the Pacific Northwest. Plaintiff has suffered and will continue to suffer

PAGE 5 _ FIRST AMENDED COMPLAINT IN

REM AND IN PERSONAM

Haglund Kelley LLP

200 S\ry Market Street, Suite 1777

Portland, OR 97201

Tel: (503) 225-0177 i Fax: (503) 225-1257

PLr2--44143

Case 3:14-cv-01687-SI Document 46 Filed 03/04/16 Page 5 of 7
damage to its reputation and lost business, in an amount presently estimated at $300,000 and to

be specifically proven at trial.

WHEREFORE, plaintiff prays :

l. That process issue out of this Court in rem against the defendant TUG

POWHATAN, her engines, tackle, apparel and equipment; and in personam against Sause Bros.

Ocean Towing, Co., Inc.;

2. On plaintiff 's First Claim, for judgment in rem against the TUG POWHATAN,

her engines, tackle, apparel and equipment and in personam against defendant Sause Bros.

Ocean Towing Co., Inc. in the sum of 538,722.09 plus contract interest at9o/o from April 21,

2013 together with plaintiff's costs and disbursements incurred herein;

3. On plaintiff 's second claim against defendant Cummins, for damages in an

amount presently estimated at $430,000 and to be specifically proven attrial, plus prejudgment

interest from April 21,2013 together with plaintiff 's costs and disbursements incurred herein;

and

4. That this Court grant such other relief as may be proper and just.

DATED this 4th day of March, 2016.

HAGLI-IND KELLEY LLP

By:/s/ Michael E. Haslund

Michael E. Haglund, OSB No. 772030

Mhaglund@hk-law.com

Attorneys for Plaintiff

PAGE 6 _ FIRST AMENDED COMPLAINT IN

REM AND IN PERSONAM

Haglund Kelley LLP

200 SW Market Street, Suite 1777

Portland, OR 97201

Tel: (503) 225-0777 / Fax: (503) 225-1251

PLl 2--44 I 43

Case 3:14-cv-01687-SI Document 46 Filed 03/04/16 Page 6 of 7
Thomas E. McDermott

James P. McCurdy

Lindsay Hart, LLP

1300 SW Fifth Avenue, Suite 3400

Portland, OR 97201

tmcdermott@l indsayhart. com

j mccurdy@lindsayhart. com

Attorneys for Sause Bros. Ocean Towing

Company, Inc.

Anna Raman

PREG O'DONNELL &, GILLETT

222 SW Columbia St., Suite 1575

Portland, OR 97201 -661 5

Telephone: (503) 224-3650

Facsimile: (503) 224-3649

ar aman@pre go do nnel l. c o m

and

J.A. (Jay) Felton

Rebecca J. McMahon*

LATHROP & GAGE LLP

2345 Grand Boulevard, Suite 2200

Kansas City, MO 64108

Telephone: (8 1 6) 292-2000

Facsimile : (8 | 6) 292 -200 I

j felton@lathropgage. com

rmcm aho n @lathr op ga g e. c o m

*Admitted Pro Hac Vice

Attorneys for Third-Party Defendant

Cummins Inc. dlbla Cummins Northwest

CERTIFICATE OF SERVICE

I hereby certify that on the 4th day of March, 2016,I served the foregoing

FIRST AMENDED COMPLAINT IN REM AND IN PERSONAM, on the following:

by the following indicated method(s):

by mail with the United States Post Office at Portland, Oregon in a sealed firstclass postage prepaid envelope.

by email.

by hand delivery.

by overnight mail.

by facsimile.

by the court's Cm/ECF system.

/s/ Michael E. Haslund

Michael E. Haglund

n

tr

n

n

u

x

H¡glund Kelley Jones & Wilder, LLP

200 SW Market Street, Suite l7?7

Portland, OR 97201

TeL (503) 225-0777 / Fsxr (503) 225-1257

PAGE 1 _ CERTIFICATE OF SERVICE

Case 3:14-cv-01687-SI Document 46 Filed 03/04/16 Page 7 of 7