Contracts relating to the construction of vessels are not considered maritime contracts.  Claims for breach of such contracts are not within the admiralty jurisdiction.  However, if the negligence constitutes a maritime tort, tort claims for negligent construction or design of a vessel will lie in admiralty.[i]

There is a settled rule that contracts for building a ship, or contracts for selling a ship, are not maritime contracts within the jurisdiction of the admiralty courts.  For a contract to fall within the admiralty jurisdiction, it must concern transportation by sea, relate to navigation, or maritime employment, or be one of navigation and commerce within navigable water.[ii]

However, a contract for equipment and its installation related to the repair of a completed boat is maritime.  Contracts to construct entirely new ships are non-maritime, because they are not related enough to any rights and duties pertaining to commerce and navigation.[iii]

[i] Employers Ins. v. Suwannee River Spa Lines, 866 F.2d 752 (5th Cir. La. 1989)

[ii] Grand Banks Fishing Co. v. Styron, 114 F. Supp. 1 (D. Me. 1953)

[iii] Boat La Sambra v. Lewis, 321 F.2d 29 (9th Cir. Cal. 1963)