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Shipyard Sued Over Sinking of Restaurant Ship : Princess Louise: The Bank of San Pedro says Southwest Marine workers were negligent while trying to repair a hole in the listing vessel. Insurer Lloyds of London is also named in the suit.

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TIMES STAFF WRITER

The owner of the doomed Princess Louise, the former restaurant ship that sank in Los Angeles Harbor last fall, has filed suit against Southwest Marine Inc., alleging that workers at the shipyard negligently caused the vessel to founder.

The suit, filed by the Bank of San Pedro in Los Angeles Superior Court on April 10, alleges that poor workmanship by Southwest Marine employees caused the accident that ended the career of the one-time passenger ship.

After years as a successful dockside dinner ship, the Princess Louise fell on hard times in 1988 and was repossessed by the bank. The bank hoped to sell the ship and contracted with Southwest Marine to make repairs. On Oct. 30, before repairs were complete, the ship suddenly listed to starboard and capsized.

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“After some investigation by consultants, it was determined that Southwest was negligent in its repairs,” said Lance Oak, president of the Bank of San Pedro.

According to Oak, the ship was already listing somewhat the day it sank, and workers were draining a ballast tank to repair a hole. Workers left to attend a birthday party lunch for several hours, allowing so much ballast to be drained that the ship began to list further, he said. At that point, the waterline reached an unsealed cargo door, flooding the ship and causing it to capsize, Oak said.

Oak also said there is evidence that the sunken ship was plundered by souvenir seekers while it lay in the Southwest Marine dock. Los Angeles Harbor Division detectives confirmed Thursday that they had recovered portholes stolen from the ship and said an investigation is under way.

The suit also names Lloyds of London because the insurer has failed to pay a $1.5-million claim filed by the bank.

A secretary for Southwest Marine’s San Diego legal department said company attorneys had no comment on the suit.

Salvagers from TriNav Shipping Co. of Vancouver, Canada, have been trying for three weeks to refloat the ship upside down. If they are successful, they will tow it about one mile off Point Vicente, where it will be sunk to create an artificial reef under the jurisdiction of the state Department of Fish and Game.

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Although the bank technically owns the Princess Louise until it is refloated, Oak said he has received $1 from the salvage company and issued a bill of sale to TriNav, which will be paid $1 million by Southwest Marine to remove the ship. TriNav will sell the ship to the Fish and Game Department for $1 once it has begun to sink.

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