Flanagan Shipping settles with the Port of Port Arthur for damages

The James J. Flanagan Shipping Corp. settled with the Port of Port Arthur Navigation District of Jefferson County. The trial was set to begin Wednesday, June 6, in Judge Milton Shuffield's 136th District Court.

The Port had originally sued Flanagan Shipping for around $8,000, claiming Flanagan refused to pay for damages its employees caused at the Port's facilities.

According to the Port's petition, since Flanagan uses the Port's facilities, it is liable to pay for the damages its employees cause.

The suit named three specific incidents.

The first incident occurred on Dec. 12, 2003, when six railcars loaded with steel slabs collided with seven other railcars. "As a result, the Port was forced to obtain repairs in the amount of $4,498.50," the suit said.

The second incident occurred on June 29, 2004, when a Flanagan employee allowed a steel slab to fall from a railcar onto the dock, chipping the surface of the facility. The suit says the Port sent Flanagan an invoice, but the shipping company refused to pay the $450 bill.

The third incident occurred on Sept. 8, 2004, when "two railcars collided while traveling at a high rate of speed," the suit said. "The Port was forced to obtain repairs to the track in the amount of $3,007.44."

"As a result of the negligence of Flanagan, the Port has sustained damages totaling $7,955.44," the suit said. "Additionally, Flanagan, by refusing to pay�has breached its duty to indemnify the Port, as contractually agreed pursuant to the terms and conditions contained in the Port's Tariffs."

The Port is represented by attorney Scot Sheldon of the Sheldon, Jordan & Dunham law firm.

Case No. D175-325.