Ildhuso Fisheries, Inc. v. Nichols Bros. Boat Builders, Inc.

MEMORANDUM

Ildhuso Fisheries, Inc. (“Ildhuso”) appeals the judgment in favor of Nichols Brothers Boat Builders, Inc. (“Nichols Brothers”) in Ildhuso’s admiralty action seeking consequential damages resulting from a fire aboard its fishing vessel, the GUN-MAR. Nichols Brothers cross-appeals the district court’s award of $10,000 compensation to Ildhuso for the time and effort spent by Gunnar Ildhuso, Jr., Ildhu-so’s employee and manager of the GUN-MAR, aiding in the vessel’s repairs.

A. Consequential Damages

Ildhuso claims that the district court erred in barring its claim for consequential damages, including lost profits it suffered while the GUN-MAR was disabled following the fire in its engine room. Ildhuso admits that consequential damages are unavailable under Nichols Brothers’ express warranty, but contends that the express warranty with its limitation of liability clause cannot preclude liability for breach of an implied warranty or for negligence. The district court concluded that the intent of the provision was to preclude “all consequential damages which resulted from Nichols’ work.”

For a liability disclaimer to be enforced, the contract provision must be clear,…