Client Work and Other Experience

• Evaluation of Insurance Claims: For a consortium of insurance industry players, MMC evaluated the Business Interruption portions of a hurricane-related claim filed by a large defense contractor for three of its shipyards. Work is ongoing and has involved extensive performance analysis of dozens of USN and USCG new construction programs; facilities damage and recovery programs; workforce trends and impacts; and financial performance pre-/post-event. MMC's work was used to guide the successful settlement discussions.
• Evaluation of Insurance Claims: For an insurance company, MMC evaluated the Business Interruption claim of a shipbuilder associated with a crane damaged by a windstorm. MMC analyzed the likely performance impacts associated with the event and related them to two commercial programs underway at the time. MMC's work contributed to a successful negotiated settlement between the shipyard and the insurance company.
• Vessel / Business Valuation: The bankruptcy estate of a cruise company was involved in litigation surrounding favored treatment of certain creditors during the bankruptcy process. As part of the effort, MMC was asked to value a series of cruise vessels at various points in time. Valuations were established based on both comparable vessel sales (from the MMC database) as well as the value of the ongoing business at various times and in various market scenarios. The case was eventually settled in favor of MMC's client.
• Ship Repair Litigation: For a law firm, MMC assisted with the development of a trial strategy involving a substantial claim arising from repairs to a cruise ship. The line of reasoning that MMC developed, analyzed and documented allowed the case to be settled out of court minutes before going to trial, with a clear victory for MMC's client.
• Containership Construction: Late delivery and technical defects following design and construction of three large containerships resulted in litigation over final contract price. MMC assisted the ship owner’s counsel in preparing a response to the shipyard’s claims for uncompensated design changes. This response included financial and schedule modeling for the project and ultimately led to a negotiated settlement that was satisfactory to both parties.
• Naval Oceanographic Research Ship Construction: For a U.S. Shipyard, MMC assisted the client’s counsel in preparing a claim against the US Navy for engineering changes that occurred during the design and construction of a prototype oceanographic research ship. Quantification of schedule and financial impact included delay, disruption and acceleration.
• Destroyer Overhauls: Constructive changes to a contract for major alterations and repairs of three destroyers resulted in preparation of an REA to the US Navy on behalf of a US shipyard. MMC prepared financial and schedule analyses to portray the impact of changes on the basic work scope. Cause and effect documentation supported substantial recovery for the shipyard.
• Naval Supply Ship Construction: Incorporation of a prototype propulsion system and contract design flaws had an adverse impact on a shipyard’s cost and schedule performance during the construction of a series of auxiliary ships for the US Navy. MMC assisted the shipyard’s attorneys in preparation of an REA that portrayed the interactive financial and schedule impacts of the contract flaws.
• Naval Auxiliary Ship Conversion: Two shipyards submitted claims to the UK Ministry of Defense for added compensation and schedule relief related to construction of fleet auxiliary ships. The contracts were flawed in the treatment of a sophisticated command and control system, leading to claims by both the shipbuilder and follow shipbuilder. Working on behalf of the Royal Navy, MMC reviewed each Contractor’s actual cost and schedule performance and prepared a rebuttal to the quantification of entitlement.
• Large Passenger-Car Ferry Construction: Late delivery and cost overruns resulted in a claim by the shipyard responsible for design and construction against the ship owner. Working on behalf of the ship owner’s attorney, MMC researched the shipyard labor market during the period in which the dispute took place. This analysis helped establish the strategy for response to the claim.
• Public Filing – Shipyard Lease: A US shipyard sought to reduce its annual lease for land and facilities owned by a public Port District. Working with the client’s attorneys, MMC prepared a forecast of the future market and likely economic results for the shipyard. These analyses supported the client’s filing before the Port District.
• Port - State Bond Filing: MMC prepared an economic analysis in support of an attorney’s filing for a state bond on behalf of a proposed new state port authority. This analysis demonstrated the economic feasibility and projected demand for a new deep-draft oil terminal.
• Tanker Accident Investigation: Grounding of a VLCC in US waters resulted in a massive investigation into the events surrounding the accident. MMC assisted the ship owner’s attorneys during initial examination of the damage in drydock, and in developing a detailed timeline for events before, during and after the accident.
• Ship Valuations: MMC has prepared valuation for ships in support of regulatory filings and/or sales transactions managed by attorneys, including:
• The value of three containerships was established during transfer from one US owner to another during reorganization proceedings by the seller
• The commercial viability and value of a fleet of two small passenger ships was analyzed during bankruptcy hearings; MMC testified as an expert witness
• Due Diligence: For numerous investment firms, MMC provided due diligence on new cruise ship offerings. These activities were typically under the direction of the firms’ corporate attorneys.
• Cruise Ship Repair Litigation: On behalf of the owner of a cruise ship, MMC provided expert advice in determining the causes of late delivery and cost over-runs on the drydocking and refurbishment of the ship. The case was settled to the satisfaction of the client.

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