The judgement was due to be handed down from the California Superior Court for San Diego County following a hearing scheduled for 8 March but was delayed to the 15 March. Nautronix and one of its subsidiaries claimed that the underwriters breached insurance contract obligations and acted in bad faith.

In another legal dispute, Nautronix is disputing a big damages claim being brought against it by SDS Corporation, the owners of Oil Digger, for infringement of patents by two of Nautronix' subsidiaries.

SDS Corporation is seeking damages in the range of $5 million and $15 million however Nautronix said it believes the estimates are very high and "well above the quantum of any damages that may be awarded."

Nautronix said the matter will most likely be dealt with by the Federal Court later in the year. "Based upon financial analysis and advice received from its attorneys and lawyers, the company believes that the net income of the two legal actions will be a net benefit for the company and its shareholders," Nautronix said.