GARZA, Circuit Judge:
On November 15, 1974, the M/V RENE J. CHERAMIE (vessel) was grounded and involved in a collision in the Houston Ship Channel. The grounding and collision were allegedly caused by a defect in the gyro-pilot steering system installed aboard the vessel. The vessel owners filed suit against the system's manufacturer, Sperry Rand Corporation (Sperry) and its insurer, Liberty Mutual Insurance Co. (Liberty). As the case developed for trial, Sperry determined...
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