This area that you are referring to is added after the boat comes out of the mould. I believe other T37's have experienced it as well. To do a repair, you'll need to grind out a shallow furrow along the joint with an angle grinder. Clean off the area, then start the layers of glass. Start with your layers only about 1 1/2" wide and each layer should be progressively wider until you have at least 5 layers? Sand flat, fair with fairing compound, sand again, seal, sand again, prime, paint......There's an excellent reference offered by West System Epoxy:
http://www.westsystem.com/ss/boat-repair/Once repaired, you should be fine
