McDonnell Douglas Sued By Insurer for Damage to Satellite

McDonnell Douglas Space Systems Co. has been sued for $6 million by Lloyd’s of London, the British underwriting firm, in connection with an accident last year in which a privately owned space satellite was damaged while being prepared for launch.

The suit was filed in Brevard County Circuit Court in Florida. In it, Lloyd’s charges that McDonnell Douglas workers were negligent in their handling of a Ford Aerospace Insat-1D satellite, which was damaged in June, 1989, when a crane broke and a 65-pound hook landed on the satellite as workers were loading it atop a Douglas-built Delta II rocket.

The $80-million communications satellite, owned by the government of India, was insured by Lloyd’s. It was repaired at a cost of $10 million and launched last month.