Pacific Marine awarded $2.75m in damages from XMH unit

On 31 March 2014, the court ruled in favour of PMS in legal proceedings brought against Xin Ming Hua, wholly-owned by XMH Holdings, to settle the claims, according to Singapore-listed XMH in a statement.

PMS sued Xin Ming Hua over the supply of four defective marine propulsion units, which comprised a marine diesel engine with gearbox and related components, as part of a sales contract entered into between the two parties in June 2010.

PMS filed a suit claiming JPY65.6m ($631,254) as recovery of the purchase price of the propulsion units, SGD645,748.06 plus $307,188.90 being charges associated with the termination of shipbuilding contracts, and SGD2.44m less JPY65.6m as the loss and damage suffered by the plaintiff for the loss of the shipbuilding contracts.

Xin Ming Hua made a counter-claim against PMS for a sum of SGD180,696.43 plus diminution in value of the propulsion units on the basis that it incurred expenses in the course of the relevant investigations carried out and in attempting to rectify the defective units.

“The company is presently considering its options with regard to an appeal against the decision of the High Court. This claim is expected to have a material impact on the company's financial performance for financial year 2014,” XMH said.

PMS builds mainly tugs and barges from its yard in Batam, Indonesia.