Cotemar, a Mexican offshore services company, has filed an enforcement lawsuit in the New York State Supreme Court seeking to have ABSG Consulting (ABSG)—a subsidiary of the American Bureau of Shipping (ABS)—recognize a Mexican court judgment. That judgment ordered ABSG to pay $34.8 million in outstanding engineering fees plus interest, totaling $59.4 million. Despite the Mexican court’s order, ABSG has refused to fulfill its payment obligations for over eight years.
Reportedly, the lawsuit filed in New York is a follow-up to the March 2022 ruling by a Mexican trial court and the June 2023 ruling by the appellate court. Both of these rulings upheld the trial court’s decision, which required ABSG to pay Cotemar for the construction work; the trial court had determined that the project had been fully completed and had passed ABSG’s acceptance process.
This lawsuit stems from an offshore engineering contract signed several years ago. In September 2017, ABSG, a subsidiary of ABS, commissioned Cotemar to provide logistical support services, including personnel and equipment, to transport and install a modular drilling platform in the Gulf of Mexico. In March 2018, Cotemar completed all construction work, but ABSG has yet to pay the contract amount.
A Mexican court of first instance found that ABSG had issued a signed certificate confirming that the project had been successfully completed in accordance with the contract; however, ABSG refused to pay Cotemar for the work, citing that it was in discussions with the general contractor, Tamaulipas Modular Rig (TMR), regarding payment.
However, the Mexican court found that TMR had paid ABSG the full amount due for the relevant construction work in accordance with the contract between TMR and ABSG; the plaintiff submitted bank transfer records in the Mexican proceedings to substantiate this payment.
In July 2018, Cotemar filed a lawsuit against ABSG in Mexico City. On March 30, 2022, the court of first instance ruled in favor of Cotemar, finding that ABSG had completed the project acceptance, that TMR had paid the company in full for the work covered by the agreement, and that the U.S. company had acknowledged the debt.
Subsequently, ABSG appealed the judgment. In June 2023, the Mexican Court of Appeals dismissed all grounds for appeal, ruling that the basis for the lawsuit was “groundless and invalid”, and upheld the lower court’s judgment. Including interest calculated under both Mexican and New York law, ABSG is currently required to pay Cotemar a total of $59.4 million.