Bean: judge’s interpretation in N.C. dredge dispute “clear error”

Bean: judge’s interpretation in N.C. dredge dispute “clear error”

Bean: judge’s interpretation in N.C. dredge dispute “clear error”

   A U.S. Court of Federal Claims decision to turnover a North Carolina harbor dredging contract to Norfolk Dredging Co. is in “clear error,” said Jim Bean, chief executive officer for Bean Stuyvesant, the company forced to give up the contract.
   “If allowed to stand, we believe the decision will add tens of millions of dollars to local port and beach replenishment projects around the country,” Bean said. “It will also jeopardize tens of millions of dollars invested by Bean Stuyvesant’s owners in U.S. dredging infrastructure.”
   The dredge contract covers work in Morehead City, N.C. Bean offered the lowest bid, but wanted to contract U.S.-flag cutter dredge “Meridian” for the project. Norfolk Dredging, the second-lowest bidder, challenged the contract award by pointing out that under federal dredging laws Bean Stuyvesant could only use a non-hopper dredge on projects in which a hopper dredge was used.
   Judge Christine Miller ruled that Bean Stuyvesant was not entitled to the contract because there was no plan to use a hopper dredge on the Morehead City project. Miller even rejected prior Customs’ interpretations involving dredging under the 1920 Merchant Marine Act, also known as the Jones Act.
   Bean said this is another example of an industry-led attack against his company. The U.S.-flag dredge industry, represented by the Dredging Contractors of America, alleges that Dutch dredger Royal Boskalis Westminster, which holds an interest in New Orleans-based Bean Stuyvesant, continues to exploit provisions in the 1992 Oceans Act.
   “We faced this hostility since our company began in 1998,” Bean said. “Our opponents may mask their anticompetitive effort under the banner of the Jones Act, but they know full well that Bean Stuyvesant uses only U.S.-flag, U.S.-built, U.S.-crewed and U.S.-operated dredges to meet all Jones Act requirements.
   “We have faith in our judicial system and its ability to correct errors,” Bean added. “I fully expect such corrective action will occur in this case.”