Opinion ID: 1970127
Heading Depth: 1
Heading Rank: 4

Heading: Delay in Shuck-at-Sea Project

Text: During the time DeMusz and Borden were negotiating about the contract with Sons of Thunder, the parties discovered that Borden's equipment would not work on the Jessica Lori. In April 1985, Borden went aboard the boat to try to get the equipment working. By September 1985, it became clear that the shucking equipment needed to be redesigned in order to work on the Jessica Lori. Thus, the equipment was removed to be reconfigured, and the ship went back to harvesting clams. During the five months that Borden was aboard the Jessica Lori, the boat was unable to harvest clams, and therefore generated no income. Prior to signing the Equipment Lease, DeMusz and Booker had discussed payments from Borden to DeMusz to cover downtime while the equipment was installed. Later, Booker memorialized that agreement in writing, promising to pay DeMusz $8,500 for each week the Jessica Lori was unable to fish because of the installation. Southwell received a copy of the writing. Borden had enough money budgeted to pay Sea Work approximately $25,000. Once those funds were spent, Booker, Southwell, and DeMusz had a meeting and decided that Borden would advance $125,000 to Sea Labor, DeMusz's managing company, to cover his operating costs. The written terms of the advance provided that there would be no interest and that DeMusz would not be personally liable. Sea Work would pay Borden back at a rate of ten cents per pound of meat harvested from the Jessica Lori. However, the new agreement provided that Sea Work would be permitted to charge Borden sixty, rather than fifty, cents per pound until the advance was paid back. In addition to reconfiguring the equipment, the Jessica Lori had to be rerigged. In February 1986, the Jessica Lori stopped harvesting clams and was brought to a shipyard to be rerigged for the Shuck-at-Sea project. The rerigging cost $350,000, for which Sea Work had to seek financing.