Ferry builder's lawsuit for $500,000

Posted: Tuesday, November 27, 2001

JUNEAU (AP) -- What once was a $53 million lawsuit against the state over construction of Alaska's newest state ferry has been settled. The state will pay a subcontractor for Halter Marine Inc. $500,000 and an insurance company will chip in $750,000.

Halter Marine had sought $46 million, claiming the state did too many inspections and ordered too many changes while the Kennicott was being built. That hurt other projects, the company claimed. In addition, subcontractor Jamestown Metal Marine Systems sought $7.2 million.

Halter went into Chapter 11 bankruptcy proceedings last spring, and the bankruptcy trustees decided the lawsuit wasn't going anywhere. Jamestown then settled for the $1.25 million.

The 382-foot Kennicott was built at Halter's Mississippi shipyard for just under $75 million, with the bulk of the money coming from the Federal Highway Administration. It's the largest passenger ship built in the Unites States since the S.S. America was delivered in 1950.

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