by BigB » July 24, 2012, 1:30 pm
Bethlehem Steel had an option with Litton for up to five thousand-footers with Litton. When the company tried to exercise their option for two thousand-footers in November 1973, and one in December 1973, Litton refused to build the ships. The 70s were a time of high inflation, and from the time the Stewart J. Cort was ordered in 1968 to 1973, the cost for building the ships had increased dramatically. Bethlehem Steel then sued for Breech-of Contract and demanded $95 million dollars in damages. The case went to the Supreme Court and wasn't settled until late 1983 when the court ruled in favor of the defendant, Litton.
Because of the delay in building the new ships, Bethlehem Steel in late 1974 took over the two options American Steamship had with Bay Shipbuilding for two thousand-footers, i.e. Lewis Wilson Foy and Burns Harbor. Then irony is today, both ships now sail with American Steamship.
Bethlehem Steel had an option with Litton for up to five thousand-footers with Litton. When the company tried to exercise their option for two thousand-footers in November 1973, and one in December 1973, Litton refused to build the ships. The 70s were a time of high inflation, and from the time the Stewart J. Cort was ordered in 1968 to 1973, the cost for building the ships had increased dramatically. Bethlehem Steel then sued for Breech-of Contract and demanded $95 million dollars in damages. The case went to the Supreme Court and wasn't settled until late 1983 when the court ruled in favor of the defendant, Litton.
Because of the delay in building the new ships, Bethlehem Steel in late 1974 took over the two options American Steamship had with Bay Shipbuilding for two thousand-footers, i.e. Lewis Wilson Foy and Burns Harbor. Then irony is today, both ships now sail with American Steamship.