Delivery Dispute between M Shipyard and D Company of Myanmar
Guangdong Private Shipyard M and Myanmar D Company signed the “China-Myanmar Crude Oil Pipeline (Myanmar Section) Ship Purchase Agreement” on September 16, 2011. M Shipyard sold three full-turn tugboats to Company D, and shall deliver them before May 31, 2013. During the performance of the contract, the delivery was postponed to August 30, 2013. At the time of delivery, the representatives of the two parties signed the "Meeting Minutes" for the tugboat acceptance. After the three tugs were delivered to the ship, the D shipyard needed to rectify the remaining projects and complete the settlement. On December 5, 2014, a tugboat accident happened at Mandalay Island, Myanmar. Company D requires the shipyard to provide free repairs on the grounds that the ship has quality defects. However, due to the malfunction of the main engine cause by water, the repair work will incur a large amount of expenses. M Shipyard commissioned us to assist and provide legal services. We assisted the shipyard to negotiate with the owner. Finally, the shipyard's maintenance costs were compensated by the owner. At the same time, the shipyard successfully receive the payment of delivery.