Enron Mail

From:britt.davis@enron.com
To:alan.aronowitz@enron.com, harry.collins@enron.com, richard.sanders@enron.com,matthias.lee@enron.com, deborah.shahmoradi@enron.com, brenda.mcafee@enron.com
Subject:In re M/V PACIFIC VIRGO
Cc:
Bcc:
Date:Tue, 1 Aug 2000 04:33:00 -0700 (PDT)

PRIVILEGED AND CONFIDENTIAL: ATTORNEY-CLIENT COMMUNICATION, ATTORNEY WORK
PRODUCT

David,

This will summarize our telephone conference of today's date. I understand
that you had an extensive and interesting conference with Matt and Neale
Gregson of Watson, Farley's Singapore office. While you are still wading
through a great deal of new information, I understand your preliminary views
to be as follows (subject to your further review):

1. You feel comfortable with using Captain Richard Gregory of Noble,
Denton's Singapore office as one of ECT's experts, so long as he does the
work himself. You are going to do some additional investigation with Neale
of Dr. Eric Mullen of Burgoyne's, who would be acting as ECT's chemist,
given that his background may primarily be in fire investigation. If you
decide to use someone other than Dr. Mullen, please give me your
recommendation as soon as possible, so that we can make sure that our "first
team" of experts is available to attend the joint survey/analysis. Please
also let me know as soon as you hear for when it will be scheduled.

2. You felt that our case against Mitsubishi would be very dependent on the
exchanges between ECT and Mitsubishi regarding tank cleaning, along with
interpretation of various charter party clauses. While Matt will correct me
if I am wrong, I believe that Eric Tan was ECT's "point man" on those
negotiations. Perhaps Matt could liaise with you to set up a joint telephone
conference with you, Neale, Matt and Eric on the line to flange down exactly
what Eric recalls having happened. I do not know whether Eric was also
involved in negotiating the charter party terms, but if he was, that makes
him an even more important witness. Matt, may I leave this with you to set
up?

3. You preliminarily felt that, as Neale recently suggested, ECT may have
a case against the ultimate owners of the vessel that may not be subject to
the charter party terms. This is based on the applicable B/L,, which you
have not yet had a chance to review, but which you were told the Master
signed on his own behalf (rather than on behalf of Mitsubishi). If you
recommend that ECT pursue the owners, then ECT will need to seize the vessel
and obtain a letter of undertaking from its P&I club. Ultimately, ECT would
then proceed with litigation, probably in the jurisdiction where the seizure
took place, or, if the parties agreed, by arbitration. This would be
separate and apart from arbitration against Mitsubishi.

Meanwhile, I authorized you to proceed with retaining a ship tracking
service to locate the vessel. I await your formal recommendation as to
whether we should seize the ship, and the particulars regarding local counsel
and expected costs.

4. You will send a draft statement of ECT's position to Matt to forward to
Mitsubishi, to the effect that ECT feels it owes Mitsubishi nothing for the
additional freight or demurrage, given that it was all caused by
contamination of the cargo onboard the ship. I will ask for authority for
you to send this to Mitsubishi and revert as soon as I can.

5. You are reviewing the FGPC/ECT contract and surrounding circumstances
and will provide us your views in due course.


Many thanks for your help.


Regards,


Britt Davis