Opinion ID: 594404
Heading Depth: 2
Heading Rank: 1

Heading: Events Preceding the Sinking of the Oxy Producer

Text: 4 After agreeing to manufacture, sell, and transport superphosphoric acid to the Soviet Union in the early 1970's, Occidental arranged for the construction of three catamaran ITBs. Numerous parties were involved in the construction project. Occidental first retained Hvide Marine International, Inc. (Hvide) to supervise the design and construction of the vessels. Hvide, in turn, contracted with a naval architectural firm, J.J. Henry Co. (Henry), to prepare the plans and specifications for the vessels. After Hvide assigned the architectural contract with Henry to Occidental, Occidental engaged Avondale Shipyards, Inc. (Avondale) to construct the vessels. Avondale thereafter subcontracted with Victoria Machine Works, Inc. (Victoria) to manufacture the bumper pads for the vessels' catug interconnection system. 5 Before construction of the three ITBs was finished, Occidental and Hvide obtained insurance for the vessels in the American and London markets. The unit of the vessel at issue in this case, the Oxy Producer, was insured under Certificate No. 14880, a time policy of hull and machinery insurance. The policy was to become effective on the date that the Oxy Producer ITB was delivered. The agreed-upon value of the Oxy Producer under this policy was $36,000,000. The American Underwriters, primarily through Wausau, subscribed to 28% of the risk under the policy. 6