Rowan Companies, Inc. v. Wilmington Trust

The construction of the relevant contractual provisions proffered by the owner trustee is the only reasonable construction. Under this construction, the “estimated residual value” part of the definition of “Stipulated Loss Value” during the “Renewal Term” of the charter is determined by an appraisal procedure and is not set at $13.3 million at the beginning of the transaction or at the beginning of the Renewal Term, as contended by the charterer. The owner trustee followed this appraisal procedure, which resulted in a determination that the estimated residual value for the rig as of March 15,…