Christensen sued by a supplier

A supplier to Christensen Shipyards has sued the Vancouver-based builder of custom yachts, alleging the company failed to pay more than $966,000 for materials and equipment used in the construction of hulls.

Meanwhile, Christensen employees arrived at the company Friday to pick up paychecks, days after learning the financially struggling company had again halted production.

Stellar Industrial Supply, with offices in the Pacific Northwest, California and Montana, filed the lawsuit on Feb. 12 in Clark County Superior Court. The complaint names as defendants Christensen, Emerson Hardwood Company, Hyak Electroworks, Y.E.S. Marine, Bank of America, Indian Marine II and Ocean Alexander Marine. The suit also lists as defendants six vessels: hulls 39, 40, 41, 42, OA120-2 and OA120-3.

“Despite Stellar’s demand for payment, Christensen has refused, and continues to refuse, to pay for the equipment and supplies Christensen purchased from Stellar, and provided to the defendant vessels,” alleges Stellar’s attorney, Christopher Allen, of the Tacoma law firm Morton McGoldrick.

A phone message and email seeking comment Tuesday from Joe Foggia, president of Christensen, were not returned. As of late Tuesday morning, neither Christensen nor the other defendants had filed a formal response to Stellar’s complaint.

The lawsuit marks the latest turbulence for Christensen. Late last year, the company temporarily closed down production for a week. At the time, it issued a statement saying it was “currently working on a multipart ownership restructure.” Subsequently, operations restarted but signs of financial stress continued to emerge. Last week, production at the company, at 4400 S.E. Columbia Way, temporarily shuttered again.

On Friday, people swarmed Christensen’s site in the late afternoon. Two workers, who wished to remain anonymous, said people were there to pick up their paychecks. One of the workers said it was the check for the most recent pay period.

Multiple vehicles lined up, nudging their way onto the site. Some people parked and walked in. At one point, several people passed each other heading to and from Christensen. “That must have been quick and painless,” someone said. “Yeah, hand it over,” another replied.

Default alleged

The lawsuit filed by Stellar — which serves a variety of customers, including manufacturers, according to the company’s website — says that around July 2007, Christensen submitted a credit application to Stellar seeking approval to buy industrial supplies and equipment from the company on an open account.

Stellar approved the application. From June 2014 until recently, according to the lawsuit, Stellar sold equipment and materials to Christensen, which were used by Christensen to construct and make installations on hulls 39, 40, 41, 42, OA120-2 and OA120-3.

However, Christensen “is in default of the Credit Agreement for failing to pay the amounts owed on the open account when due,” the suit alleges. The current balance owed: $966,685.55.

Having furnished supplies and materials for each of the named hulls, the complaint says, Stellar has liens against those vessels. And while the other defendants contend they possess interests in the hulls, the complaint argues, until they establish the legitimacy of their claims, “Stellar alleges that its liens have priority.”

Stellar asks the court to rule against Christensen and to award it $966,685.55, plus interest, attorney fees “and other costs incurred” by Stellar under the credit agreement. Stellar further requests the Clark County Sheriff’s Office sell each of the vessels. The proceeds would be “applied to the vessel liens of Stellar,” according to the complaint.

Stellar also calls on the court to determine the “respective rights and interest of all Defendants who claim an interest in each defendant vessel.” And if the proceeds from the sale of the defendant vessels don’t cover Stellar’s costs, the lawsuit says, the court should then award a “deficiency judgment” against Christensen.