AMERON INTERNATIONAL CORPORATION, AMERON B. V. and GREENWICH INSURANCE COMPANY, Plaintiffs,
AMERICAN HOME ASSURANCE COMPANY, Defendant. AND RELATED COUNTERCLAIM
FINDINGS OF UNCONTROVERTED FACTS AND CONCLUSIONS OF LAW IN SUPPORT OF JUDGMENT
MANUEL L. REAL, District Judge.
FINDINGS OF UNCONTROVERTED FACT
1. Ameron International Corporation (AIC), along with its wholly-owned subsidiary and licensee Ameron B.V. (collectively, "Ameron"), is an international manufacturer of paint coatings.
2. In approximately 1998, Sable Offshore Energy, Inc. began construction of separate onshore and offshore facilities for the production of natural gas/natural gas liquids in Nova Scotia, Canada. Ameron contracted with Sable Offshore Energy, Inc. to provide paint coatings for both the onshore and offshore facilities (the "Sable Project").
3. Amercoat 132 was a primer coating manufactured and sold by Ameron B.V. for use on the Sable Project.
4. PSX 700 was a polysiloxane topcoat manufactured by AIC and used on the Sable Project.
5. Amercoat 132, when combined with PSX 700, formed the two-coat protective coating "Amercoat 132/PSX 700" (hereinafter "Amercoat 132 system").
6. Ameron B.V. submitted the Amercoat 132 system to two different outside testing facilities for performance testing under the Norwegian Technology Standards Institute NORSOK Revision 2 test program to determine if it satisfied industry standards.
7. The test results for the Amercoat 132 system were inconsistent. The Centrum voor Onderzoek en Technish Advies (COT) laboratory reported to Ameron B.V. that Amercoat 132 had failed certain NORSOK Revision 2 test requirements, whereas Corrosion Control Consultants and Labs, Inc. (CCC&L) advised that Amercoat 132 had passed the NORSOK Revision 2 test requirements.
8. In light of the conflicting test results, Ameron B.V. began conducting internal performance tests in January 1998.
9. The results of Ameron B.V.'s internal testing indicated that the Amercoat 132 system had failed certain performance tests.
10. Ameron B.V. began selling the Amercoat 132 system to paint subcontractors in May of 1998 for application on the Sable Project.
11. The Amercoat 132 paint system was supplied through both Ameron B.V. and Canadian licensee, Amercoat Canada, and the sales continued during the course of Ameron B.V.'s product performance testing.
12. To avoid supply interruptions to customers then receiving the Amercoat 132 system, Ameron B.V. substituted a different primer (Amercoat 68) without advising its customers.
13. The substitution of Amercoat 68 as a primer continued until November 1998 when Ameron B.V. ...