State Resolves Fast Vehicle Ferry Litigation
March 04, 2013
"Our goal in this litigation has always been to ensure Alaska's residents have reliable ferry service," said Attorney General Michael Geraghty. "This settlement accomplishes that goal."
The State sued the German engine manufacturer MTU, along with its U.S. affiliate Tognum America, and Robert E. Derecktor, Inc., the contractor responsible for the design and construction of the ferries, in 2010 based on recurrent problems with the vessels’ diesel engines. In February 2012, Derecktor declared bankruptcy, which delayed the lawsuit and eventually left the MTU entities as the lone defendants. Throughout the litigation process, the State and MTU continued discussions in an attempt to resolve the dispute. As a result, the State and MTU arrived at an agreement, whereby MTU will replace the vessels’ engines at no expense to the State.
“AMHS looks forward to installation of the new engines, which will greatly improve the reliability of the fast ferries Chenega and Fairweather,” said AMHS General Manager Captain John Falvey.
The settlement involves several components including:
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