Bender Shipbuilding, et al. v. Caterpillar, Inc., et al.
Apr 18, 2014OUTCOME: $46,000,000 Settlement
In October 2005, Bender Shipbuilding entered into a contract with the ship operator for the construction of a series of state-of-the-art vessels, including the M/V Sherman. The contract price for the M ... /V Sherman was almost $27 million. On May 14, 2008, while the vessel was still under construction, one of its 3516B Caterpillar marine engines threw a rod during routine testing, causing a massive fire that burned the ship to its hull. Everyone who was on the ship at the time of the explosion was safely evacuated. In their lawsuit, the Plaintiffs alleged that the Caterpillar engine installed on the M/V Sherman was defective at the time of its original manufacture and delivery. The engine that failed weighed 17,000 pounds, had thousands of parts, was the size of a commercial truck, and was severely damaged in the fuel fed fire that burned for almost 24 hours. Discovery in the lawsuit revealed that the engine failure was caused by a missing oil plug. The missing plug was the size of a nickel, and had been left out of the crankshaft in the innermost part of the engine when it was manufactured. The missing oil plug starved part of the engine of oil, which led to the engine’s catastrophic failure.
