Advertisement

R. A. Carpenter Files Suit Over Shipyard Deal

Share
San Diego County Business Editor

Marine engineering executive R. A. Carpenter, having failed in his bid to buy Campbell Industries for $6.5 million, has filed a $19.5-million civil lawsuit alleging breach of contract, fraud and negligence.

Peter G. Schmidt, president of Seattle-based Marine Construction & Design Co., Campbell’s parent, confirmed in an interview Tuesday that the “deal is off.”

Schmidt would not discuss details of the lawsuit except that “Carpenter is saying that we declared him in default of his contract; he claims he wasn’t (in default).” Schmidt denied the allegations in the lawsuit, which was filed San Diego Superior Court.

Advertisement

Carpenter, owner of R. E. Staite Engineering and Sea Group Construction in San Diego, could not be reached for comment.

Carpenter previously said he planned to use Campbell’s 35-acre facility--located at the foot of 8th Avenue on San Diego Bay--to compete with National Steel & Shipbuilding and Southwest Marine for Navy ship-repair contracts.

When the purchase agreement was announced in February, Carpenter predicted that the new firm--which was to be renamed San Diego Marine Industries--could generate $20 million in Navy contracts in the next 18 months and employ up to 500 workers.

Carpenter tried to get an extension of the escrow closing date, but Schmidt and Marine Construction officials refused, according to the suit.

The contract “clearly showed” that an extension could be granted if Carpenter had financing available, according to a source close to the negotiations.

Meanwhile, the lawsuit has muddied the San Diego Unified Port District’s attempt to buy part of Campbell’s facility. Campbell officials “can’t give clear title to the port” until the lawsuit is settled, according to a Campbell official.

Advertisement

Campbell, San Diego’s second-largest shipyard, employed 1,300 workers in 1981. Its new-vessel construction, which was tied to the fortunes of the local tuna industry, has been virtually idled for the past three years.

Advertisement