A $24 million verdict against Rolls-Royce
Carnival Cruise Lines recently secured a $24 million verdict against Rolls-Royce, which was found guilty of fraud by a unanimous jury.
Rolls-Royce marketed its Mermaid pod propulsion system to Carnival for operation on its largest and most prestigious ship, the Queen Mary II. The jury found that at the time Rolls-Royce presented its pod to Carnival, Rolls-Royce knew the pod was defective and not fully developed.
Carnival argued that Rolls-Royce rushed into the market to beat its competitors and sold an untested product that failed throughout the cruise industry. It further contended that Rolls-Royce made money not only on the sale of the pods, but also each time that the bearings on the pods had to be replaced. It claimed that Rolls-Royce refused to pay for any of the replacement costs and made money off the repairs, forcing it to file suit.
The judge and jury agreed with Carnival. US District Judge Patricia Seitz said that the jurors asked her why the case ever went to trial: “The first question they had was why didn’t these people settle when they have to work together.” Seitz also stated that she regarded the trial as a potential “bellweather for lawsuits” filed by other cruise lines that also found fault with Rolls-Royce’s pod system.
Source: Internationallawoffice
