Shutting down drilling operations because one of your subcontractors raises a flag is a reasonable measure that was not taken.

That's rather presumptuous don't you think? Considering that's a question to be determined by the court upon consideration of all the evidence? Obviously the court will be deciding what was reasonable with regard to the circumstances prevailing at the time not with the benefit of hindsight and just one side of the argument - like you seem to be doing.