Naval Combat, Ironclads vs. Wooden Ships

[MarcusCSA]

Gentlemen,

Can someone explain to me why:

1) My Ironclads 'catch fire' and retreat after taking 0 damage?

2) My Ironclads then retreat without having taking any damage and hammering the Union, leaving the entire fleet to be captured post combat?

This is highly frustrating, I know Naval Combat is a very small part of the game, but being beaten purely by numbers instead of actual hits that damage my ships is a bit frustrating.

[ericbabe]

Page 72:
5. Morale Checks
Each unit may also have to make a check against Quality each round to see whether it can con-
tinue to remain in the battle.  The chance of having to make this check depends on its location
on the battle grid: 
•  charging units have a 33% chance to have to make a check
•  attacking units have a 20% chance to have to make a check
•  defending units have a 10% chance to have to make a check
If a side has 1/3rd of its units in the Rout area, then this chance is increased by +5%; if 2/3rd of
its units are in the Rout area, then the chance is +15%.  Units with low Strength (infantry below
1000 or ships below 5) must always make this check.
 
A unit required to make a morale check compares a randomly-generated number between 0-10
against its Quality. 

Page 73:
4.4 NAVAL COMBAT
Naval battles are implemented via the Quick Combat interface.  The attacker is the side whose
ships have been in the combat sea zone for the shorter amount of time, and consequently the
defender is the side whose ships have been in the combat sea-zone for the longer amount of
time.  The zones on the combat grid are renamed Volley, Attack, and Melee, and modify salvos
and counter-salvos in a simpler manner than land combat.