The International Transport Intermediaries Club (ITIC) has revealed how it lowered a payout to a yard after a hydrographic survey vessel sank.
The UK club said an unnamed shipyard had lodged a $2m claim for damages and loss of profit.
The naval architect was appointed by the yard to approve the design and stability.
The necessary certificates of compliance were issued by the architect, confirming that the vessel conformed to the relevant standards.
"The vessel was then put through sea trials during which it capsized, resulting in significant damage," ITIC said.
The buyer rejected the ship and ended discussions about the possible purchase of a number of other vessels from the same builder, it added.
The buyer and the relevant maritime safety authority then commissioned separate reports from two other naval architects, who both found the ship did not meet the required standards.
After legal action was started, the parties agreed to conduct a repeat of the stability test, which showed it to be unstable and confirmed that compliance certificates should not have been issued.
But ITIC negotiated the claim down to just $250,000 because the yard was unable to provide evidence that further newbuilding contracts would have been placed, ITIC said.
