Bay State-Spray & Provincetown Steamship, Inc. v. Caterpillar Tractor Co.

In 1972 the plaintiff (Steamship), which operates a passenger ferry service betweeen Boston and Provincetown, ordered the ship “Provincetown” built by a shipyard. The shipyard installed engines that had been manufactured by the defendant (Caterpillar). The ship began commercial operation in 1973. On August 17, 1980, while the ship was en route to Provincetown, its main starboard engine malfunctioned. As a result, the ship’s operating schedule during the next month was disrupted. Steamship commenced this action in May, 1982, to recover damages for the cost of repair and for lost profits caused…