Northline Seafoods has reached a settlement with Leo’s Welding and Fabrication, resolving a financial dispute that at one point threatened to jeopardize the company’s plans to process salmon in the U.S. state of Alaska.
Northline Seafoods constructed a large floating processing facility that it planned to sail to Alaska to process up to 750,000 pounds of salmon per day. The company hoped to deep-freeze whole salmon on site in Bristol Bay and then bring the fish back to the U.S. state of Washington for further processing.
That plan was partially derailed by a fire in 2024, and after finally repairing the vessel and preparing for the 2025 season, it was almost derailed again when a U.S. judge issued orders to seize the company’s barge, named Hannah, due to a lien against Northline Seafoods for more than USD 1.2 million (EUR 1.03 million).
The order stemmed from a lawsuit filed by Leo’s Welding and Fabrication claiming the company still owed it for work performed on the Hannah during its construction. Northline later paid a bond to secure the release of the vessel, and ultimately the company had a succesful salmon season returned to Bellingham, Washington on 18 August, per the company's Facebook page.
Now, Northline Seafoods and Leo's Welding and Fabrication have filed new documents with the U.S. District Court for the Western District of Washington indicating the two parties have settled.
According to a filing, plaintiffs Leo’s Welding and Fabrication and Sayak Logistics LLC – the subsidiary of Northline Seafoods responsible for the bond – have settled all matters related to the lawsuit. Both parties asked the court to discharge the USD 1.378 million (EUR 1.187 million) bond filed with the court on 16 May.
“The funds on deposit with the Surety shall be divided between the parties as directed by the parties pursuant to their settlement agreement,” the filing states.
U.S. District Court Judge Lauren King granted the companies’ request and said Leo’s earlier lawsuit will be stricken pending the dismissal of the case.
The exact terms of the resolution were not disclosed by either party in the case.
The resolution is a sharp turnaround from filings both companies issued just weeks before, with Leo’s Welding and Fabrication recently making a motion for summary judgment that Northline breached its contract by not paying the company.
The company claimed that it was asked to provide additional services near the completion of its first contract for Northline and, rather than a new written contract, the two orally agreed that Leo’s would provide services for a fixed bid amount. The company said it generated invoices on the work – that then went unpaid.
“At no time during or after completion of Leo’s services did Blakey nor any other Sayak representative report that Leo provided defective workmanship and/or materials,” Leo’s motion stated.
