PGS appeals court decision in seismic vessel case
Norwegian marine seismic acquisition specialist PGS has appealed a court decision made in a case it had launched against GC Rieber Shipping’s subsidiary over a seismic vessel.
To remind, the Bergen district court in March dismissed a 9 million euros claim by PGS Geophysical (UK) Limited against GC Rieber Shipping ASA’s subsidiary Armada Seismic Invest II AS.
The court then awarded Armada full legal fees in the amount of 3.4 million Norwegian crowns.
According to a statement by GC Rieber Shipping on Tuesday, PGS has appealed the decision.
Dispute from 2012
The dispute over a seismic vessel stems from June 2012 when Arrow Seismic Invest (now: PGS Geophysical (UK) Limited) launched a claim alleging that Armada had acted negligently when the company took delivery of the seismic vessel hull 533, the Polar Duchess, in October 2011 and claimed 9 million euros in damages.
The ship was built by the Factorias Vulcano shipyard in Spain.
Arrow, which at the time of delivery had a pending second priority attachment over the shipyard’s claim for payment, asserted that Armada’s payment was made to the wrong party when the first priority mortgagee was paid.
Following the claim, Armada said it had made the payment in good faith on basis of thorough documentation and in accordance with ordinary security law and said Arrow’s claim for damages was without merit.
In a statement on Tuesday, April 19, 2016 GC Rieber Shipping said Armada reiterated its view that the claim is unfounded.
“Armada will continue to defend itself against the claim before the Court of Appeal, from which a judgment may be expected in 2017,” GC Rieber Shipping said.