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ARCWEL MARINE, INC. v. SOUTHWEST MARINE, INC.

Nos. 86-5882, 86-5889.

816 F.2d 468 (1987)

ARCWEL MARINE, INC., Third-party Plaintiff/Appellee/Cross-Appellant, v. SOUTHWEST MARINE, INC., Third-party Defendant/Appellant/Cross-Appellee, and San Diego Unified Port District, Third-party Defendant/Cross-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided May 1, 1987.

Attorney(s) appearing for the Case

Peter J. Ippolito, San Diego, Cal., for third-party plaintiff/appellee/cross-appellant.

C. Douglas Alford, San Diego, Cal., for third-party defendant/appellant/cross-appellee.

Before TANG, ALARCON and KOZINSKI, Circuit Judges.

KOZINSKI, Circuit Judge:

We consider whether an exculpatory clause in a contract for use of a dry dock, itself an integral part of a Navy procurement contract package, was unenforceable on grounds of unconscionability.

Facts

Arcwel Corporation ("Arcwel") was awarded a contract by the United States Navy to overhaul the U.S.S. Dubuque. The contract required that the overhaul be performed at a Navy-owned dry dock that was under lease to the San Diego...

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