Company sues Guam firm over shipping dispute

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Posted on Apr 12 2009
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Mid Pacific Salvage Ins. sued Smithbridge Guam Inc. (SGI) for breach of marine contract.

Mid Pacific asked the U.S. District Court for the NMI to order SGI to pay $19,344 in compensatory damages plus interest.

Attorney Timothy Bellas, counsel for plaintiff, stated in the complaint that on June 15, 2006, SGI inquired through an employee the cost for shipping certain items from Guam to Rota and thereafter back to Guam.

Bellas said at the time of the inquiry, Mid Pacific had a prior and ongoing business relationship with SGI.

He said the items which SGI’s agent inquired about transporting consisted of a unit of heavy equipment and various tools and other equipment.

Bellas asid all of the items transported by his client all belong to SGI but were being leased to IOTA Partners for its use in underwater exploration activities to be carried on in the waters off of Rota.

The lawyer said in order to transport the heavy equipment (350 Caterpilar Excavator) off Guam, SGI was required to provide proof that the lender who has a lien on the excavator was allowing the equipment to be transported to Rota.

Mid Pacific shipped all the items from Guam to Rota aboard its barge named the Francesca IV which was towed by the motor tug named Don Juan Tenorio.

Bellas said the excavator and other items which belong to SGI were shipped back to Guam from Rota on Sept. 23, 2006.

Bellas noted that while the equipment was still on Rota, a dispute arose between SGI and IOTA s to the serviceability of the equipment.

“When plaintiff made a demand on SGI for payment for shipping the Excavator and other equipment back to Guam, it was provided a copy of the purported contract between IOTA and SGI, indicating that the price negotiated between IOTA and SGI did not include the cost of shipping, the previously described equipment, to and from Rota,” he said.

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