Judgment in Fraud Verdict Against Rolls-Royce in Favor of Carnival

On June 15th 2011, Federal District Judge Patricia Seitz of the U.S. District Court for the Southern District of Florida entered a judgment maintaining the jury's January 2011 fraud verdict in favor of Carnival and against Rolls-Royce for $16,788,000.

Judge Seitz found that Carnival had suffered damage as a result of being induced by Rolls-Royce to choose the mermaid pod propulsion and steering system for its Queen Mary 2 ship, based upon false statements made my Rolls-Royce.

Judge Seitz also found there was sufficient evidence to support the jury's finding that seven statements made by Rolls-Royce to Carnival regarding the Mermaid pods were false. After reviewing the evidence, Judge Seitz concluded that although Rolls-Royce had not breached the warranty of workmanlike performance, she found the evidence support the contention that the mechanical failures were the result of a defective design.

In her order, Judge Seitz found "...there was sufficient evidence for the jury to find that Rolls-Royce's statements were a substantial factor in Carnival's decision to use the Mermaid pods. ...there is record evidence from which a jury could conclude that Rolls-Royce knew or should have known that the statements were false.