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Funds owed to Mermaid Marine Australia have been frozen by a US court

Funds owed to Mermaid Marine Australia have been frozen by a US court under a $US34.5 million lawsuit by victims of a Gulf of Mexico storm tragedy. As owner of the "Mermaid Vigilance", the WA company is accused along with two US firms of negligence because the vessel failed to come to the rescue of a stricken liftboat crew during tropical storm Nate in September 2011. Four members of the "Trinity II"-crew died and six others survived three days at sea on a raft without food or water after abandoning their stricken vessel. A US District Court judge in Galveston, Texas, made a maritime attachment and garnishment order naming US contractor Geokinetics and several oil and gas companies for up to $US34.5 million to be deposited in a trust pending the outcome of the suit. The fee owed by Geokinetics to Mermaid Marine for chartering the "Mermaid Vigilance" to lay cable on an offshore exploration project has been included in the amount deposited. Mermaid Marine on Mar 22, 2012, said the fee would be discharged if the court accepted its application for a $US21.1 million limitation of liability. The marine services provider last week applied for the limit, which it based on the value of the Mermaid Vigilance plus hire fees. Mermaid's Bermudan insurer gave the court a letter of undertaking for the amount. Three US survivors and the families of two of the deceased are involved in legal action against the companies. Mermaid said it would not enlarge the limit of liability if more victims sued. The freezing of the charter fee - for less than 12 months' hire - was not material because it operated more than 30 vessels, two North West supply bases and a slipway. Mermaid believes insurance and contractual indemnities will cover any damages arising from the case. Negotiations between the insurer and the victims' representatives to settle the case are understood to be in progress. Mermaid said it would continue defending itself against the victims' claims. It argues the master of the "Mermaid Vigilance" made the right decision to sail to a port of refuge during the storm instead of trying to aid the "Trinity II" 32 km away. The victims' lawsuits have claimed the vessel had "cut and run" for shelter in act that was "tantamount to murder".

"Murder at Sea"-allegation

Mermaid Marine is one of three companies accused of actions 'tantamount to murder at sea' in a US lawsuit filed by the family of one of four oil workers who died in September 2011 during a violent storm in the Gulf of Mexico. Two of the six men who survived the catastrophe also have filed lawsuits alleging ASX-listed Mermaid Marine and US-based companies Geokinetics Inc and Trinity Liftboat Services were grossly negligent. They claim the crew of the "Mermaid Vigilance", one of Mermaid Marine's fleet that was contracted to provide services to Houston-based Geokinetics, turned for shore instead of helping the oil workers as they abandoned the disabled liftboat "Trinity II" on September 8. They contend the "Mermaid Vigilance"'s action in deserting the workers was both cowardly and intentional, and they allege Geokinetics was the 'ringleader'. Mermaid Marine confirmed on Sep 28, 2011, that claims had been made against it and other parties in the US District Court for the Southern District of Texas. It said that it had notified its insurers of the claims, which it denies and which it will defend. The "Mermaid Vigilance" served as a standby vessel for the workers who were stationed on the "Trinity II", which stores supplies for offshore oil operations. Mermaid Marine said that none of the four workers who lost their lives was employed or on a Mermaid Marine vessel. The company has sent a team to Mexico to investigate the incident. The "Trinity II" was abandoned in the morning of September 8, as tropical storm Nate developed into a hurricane, and one of the support legs collapsed. The "Mermaid Vigilance" at that time was nearby and had been in constant communication over several hours as Captain Jeremy Parfait on the "Trinity II" urged the vessel to come closer and pick up the workers. But the "Mermaid Vigilance" instead turned for shore. Mermaid Marine said that she was carrying a total of 30 crew and passengers when it was caught in the storm that produced wind gusts up to 93 knots and waves in excess of 20 metres in height and that the master of the vessel was forced to take evasive action to protect the personnel on board. It is not clear if the "Trinity II" workers were already in the water at this point but they were certainly in peril, not least because the inflatable life rafts blew away before the workers could deploy them into the ocean.