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Coyote Point down the coast to the South San Francisco area in
1988; (4) a day cruise from Coyote Point to display the yacht at
the Alameda Boat show in the fall of 1988; and (5) a day cruise
from Coyote Point to San Francisco Boat Yard for repairs.
During January 1989, petitioners came to believe that
Brendan was dangerous and unseaworthy due to improper welding by
Kanter Yachts during construction. In February 1989, petitioners
demanded that Kanter Yachts purchase Brendan. However, Kanter
Yachts offered, instead, to repair the sailboat. On February 27,
1989, in corporate minutes subsequent to a meeting with the
representatives of Kanter Yachts, it was recorded: “Mrs. Lucid
explained that both her husband and she could not consider making
ocean passages in the yacht.”
On March 9, 1989, petitioners also wrote to Kanter Yachts:
We have studied your proposal #2 very carefully. We do
not enjoy the prospect of being without a boat for six
months, especially during the summer sailing season;
nor the trips at each stage of construction. However,
if we can reach an agreement I assure you that we will
do our utmost to assure a cordial working relationship.
The main or core problem is in the welding and as I
have learned aluminum is a very difficult metal to work
with.
* * * * * * *
* * * [The proposed agreement] assumes that Lucid
Cruising Inc. continues to represent Kanter Yacht
Corporation on the west coast. * * *
On April 1, 1989, to resolve the dispute, Kanter Yachts made
an agreement with Lucid Cruising, Inc. In the contract, Kanter
Yachts agreed to build petitioners a new yacht, named “Trinity”,
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