Satellite prime
contractor Astrium of Europe is asking an international arbitration panel for
24.5 million euros ($37.8 million) in damages from Conax of Florida, a builder
of satellite propulsion components, in a legal battle that began following a
propulsion failure on board a commercial telecommunications satellite,
according to industry officials and court documents.
In a dispute that Conax
Florida Corp. of St. Petersburg wanted to resolve in a U.S. District Court,
Astrium is arguing that an on-site inspection of Conax following the satellite
problem found cracks in numerous Conax-built pyrovalves.
The satellite in
question, the Amazonas
spacecraft owned by Hispasat of Spain and launched in August 2004, continues to
operate but its planned 15-year in-orbit life has been reduced by up to five
years, according to Hispasat estimates.
Industry officials said
insurance underwriters already have paid a partial settlement to Hispasat but
are withholding any remaining payment until they are more certain of how much
operating life Amazonas has left.
Officials said that
following standard industry practice, Hispasat prime contractor Astrium
established a board of inquiry to determine the cause of the propulsion system
leak. Officials said that following a lengthy investigation, the inquiry
concluded that a defective pyrovalve is the most probable cause of the Amazonas
leak.
It was during this
investigation that Astrium visited Conax to oversee delivery of the last of
four batches of pyrovalves — 406 in all — to be delivered between 2001 and
2005. Pyrovalves are used to isolate segments of a satellite's propulsion
system until needed during operations. They are also used on rockets.
Conax, which is owned by
Cobham plc of Dorset, England, is a major producer of pyrovalves for satellites
and launch vehicles.
According to documents on
file at the U.S. District Court for Middle District of Florida, where Conax
sought to settle the Astrium
dispute, Astrium discovered cracking in one or more Conax pyrovalves during a
visit to Conax in June 2005.
Astrium then asked for a
re-inspection of pyrovalves already built and made ready for shipment. "[F]urther
examination of earlier batches of pyrovalves also showed cracking,"
according to a July 18, 2007, court filing before the case was transferred to
an International Chamber of Commerce arbitration panel in London.
Astrium demanded 24.5
million euros in damages from Conax. Conax officials said this amount was
excessive given the value of the contract. According to the U.S. District
Court, Conax "concedes that its pyrovalves failed, but it disputes the
scope of its liability."
But Conax's attorney,
Charles M. Harris of the St. Petersburg law firm Trenham, Kemker, Scharf,
Barkin, Frye, O'Neill & Mullis, said the company has no knowledge of any
connection between the defect that led to the Astrium dispute and the leak on
board Amazonas.
In an April 17 interview,
Harris expressed surprise that Conax's name has been linked to the Amazonas
failure. He said that Conax no longer supplies pyrovalves to Astrium not
because Astrium has refused delivery, but because Conax has refused to make
shipments. Astrium, he said, has insisted on an open-ended product-liability
regime that Conax cannot accept.
Astrium spokesman Patrice
de Lanversin said the company would decline to comment on the Conax dispute,
and also would decline to comment on the Amazonas failure review.
Elizabeth Bolint, director
of contracts and legal counsel at Conax, declined to discuss whether Conax had
participated in Astrium's Amazonas investigation. Industry officials said
failure investigations normally would include the full participation of any
company whose product was thought to be suspected in a failure. Company
officials also would be asked to approve the inquiry's conclusions and
recommendations.
In addition to Astrium,
insurance underwriters apprised of the conclusions of the board of inquiry
would have made sure that no other insured satellites under construction
carried the suspected gear without being re-examined in light of the
investigation, according to insurance and satellite industry officials.
Bolint declined to
discuss the Astrium arbitration. Asked whether Conax has modified its
production or inspection processes in light of the Amazonas issues, Conax
responded April 24 with the following statement: "Conax has been supplying
the space industry with pyrovalves since the Mercury program and our most
recent success was noted on April 14th with the launch of Atlas 421 using over
10 Conax pyrovalves.
"As a
general rule, our products are customized per customer requirements with
reference to relevant flight history and qualification test procedures. Conax
has continued to follow its standard practice of being very open with its
customers and with the space community. However, it follows from customization
that details affecting any one customer's pyrovalves are not valid for the
valves of another customer."
