Ask a Maritime Attorney
Why Seek a ‘Federal Vessel Arrest’ Instead of a State Court Judgment?
I won a $15,000 judgment against a boat owner in state court. The judgment related to repair work that I did on the boat -- and, since the boat is documented with the Coast Guard, I recorded a notice of claim of lien against the Coast Guard title. The owner has no assets other than the boat and no real income, so I would like to go after the boat to satisfy the judgment. I assume that since federal law trumps state law and the boat is Coast Guard-documented, it is protected from a sheriff’s levy to satisfy a state court judgment. It, therefore, appears that a federal vessel arrest is the only way that I can initiate legal action against the boat, but I understand that a federal vessel arrest is very expensive. Do I have any other recourse?
What Happens When a Seller Backs Out of a Boat Sale After a Grounding?
I am a licensed yacht salesman in California, and I am representing a boat owner under an “open” listing agreement for the sale of his boat. We were approached by another yacht brokerage with a potential buyer, and the parties eventually entered into a purchase contract. The buyer completed all of his inspections and signed off on all contingencies, but before closing the owner’s friend ran the boat aground. The boat suffered considerable damage in the incident, but upon learning that the repairs would be pretty straightforward the buyer agreed to go forward with the purchase if the repairs were completed in a timely manner. That would have been great news, except that the owner has decided that he does not want to sell the boat. We are now facing three issues. First, the buyer wants to force the sale to go forward. Second, since our listing agreement requires the owner to pay our commission if he backs out of an enforceable contract, we feel that we are entitled to our commission. And finally, the people from the other brokerage claim that they are entitled to a share of that commission since they brought the buyer to us. Can you help?
Can My Coast Guard-Documented Boat Be Seized by a County Sheriff?
I was sued in small claims court last year by a marine engine mechanic who did some work on my boat. We had a dispute over whether the job was properly completed, so I decided to withhold my final payment until the problem was resolved. I was out of town on the day of the hearing, so I’m not sure what happened, but I later received notice that a judgment had been entered against me for around $7,000. Last week, the county sheriff seized the boat and I was notified that it will be sold to satisfy the judgment. I am confused by all of this, because my boat is Coast Guard documented, and I had always understood that a lawsuit involving a documented vessel must be filed in federal court, and that the boat would be seized by federal marshals. How was he able to do this through a small claims court lawsuit?
Can a Home-Built Boat Be Documented with the Coast Guard?
I am considering buying a 39-foot sailing yacht that was built from a kit on a vacant lot. The boat was never completed or put in the water, and it has been stored on private property since the death of the owner five years ago. The property was recently sold, and the new owners of the property would like to get rid of the boat to make room for the house that they plan to build. Unfortunately, no title paperwork appears to exist for the boat, I don’t think it has ever been documented or registered, and there is no hull identification number. Under these circumstances, can the property owners legally sell the boat to me? If I go forward with the purchase will I be able to document the boat with the Coast Guard once I’ve completed construction?
Is It True That I Can’t Sue the Coast Guard?
Last year, I was involved in a boating accident when I hit an unlit channel marker buoy in San Diego Bay. I wasn’t going very fast, but unfortunately one of my passengers was injured when she was thrown forward by the impact. She filed a lawsuit against me and, since I was uninsured at the time, she is going after my boat as compensation for her injuries. I spoke to my lawyer about the possibility of bringing the Coast Guard into the lawsuit on the theory that they should not have used an unlit buoy at that location, but he said that the federal government is immune from civil lawsuits. Is he correct?
What Do Boat Buyers Need to Know About a Coast Guard Abstract of Title?
I am in the process of buying a boat, and I’d like to know more about the Coast Guard Abstract of Title. What information is listed on the abstract, and is it available for all boats? My lender was unable to approve my loan until reviewing the abstract, but I don’t recall this being an issue on my previous boat.
Do Bareboat Charters Avoid Foreign-Built Passenger Boat Prohibitions?
I read your article in the most recent issue of The Log Newspaper (Nov. 11-24) concerning the prohibition against the use of foreign-constructed boats for passenger charter service in the United States. Your article said nothing about whether a bareboat charter operation should be subject to the foreign-build restrictions or any other Coast Guard regulations. Can you shed some light on how that would all work with a bareboat charter?
Why Was a Waiver of the Jones Act Needed for U.S. America’s Cup Races?
I just ran across an online discussion of how the Jones Act and other maritime regulations might interfere with the running of the America’s Cup in San Francisco during 2013 and the America’s Cup World Series, which is coming to San Diego this month. I understand that a bill is working its way through Congress to circumvent those regulations. Can you explain how this all works?
Do I Have to Pay Possessory Interest Tax on a Slip I No Longer Occupy?
I have a question about the assessment of “possessory interest” taxes on my marina slip. I keep my boat in a city-owned marina that is in the early stages of a renovation project. I was instructed by the marina to move my boat to another slip in March of this year, and several months later they started the demolition of the marina. In the middle of this renovation project, I was shocked to receive a tax bill from the county for my old slip. The bill indicated that it was for the period from July 1 of this year through June 30 next year. When I contacted the assessor’s office to question this, they advised that they are unable to pro-rate or refund taxes when a tenant leaves a slip in the middle of the year. This seems ridiculous in light of the fact that I left before July 1, and in light of the fact that the slip no longer exists. This is important to me because my temporary new slip is in a less-desirable location, and as such I assume the taxes will be lower. Regardless of the amount of the assessment on the new slip, I am concerned that I will end up being taxed on both slips. Do I have any recourse at all with all of this?
My Yacht Broker Hasn’t Sold My Boat Yet. Can I Work With Another Broker?
My boat has been listed for sale with a yacht broker for more than a year. I understand that boat sales in general are pretty slow right now, but I am not convinced that my broker has been doing everything possible to market the boat. A few days ago, I was approached by another broker who indicated that he has a buyer for my boat — and that he could have a legitimate offer in my hands right away, if I sign a listing agreement with him. I am concerned that this might cause problems with my existing broker, but the new broker said that I would have nothing to worry about, since the boat has not been properly marketed. What are my legal options in a case like this?
What Are Boaters’ Rights When a Lender Seeks to Repossess a Vessel?
My boat was repossessed last year, and the lender is now pursuing me for a deficiency claim after the sale of the boat. The repo and sale were both conducted by private companies, and the entire process seems to have been conducted in a big hurry, with no concern for my rights. I did a little research, and since this was a Coast Guard-documented vessel with a preferred ship mortgage, I was under the impression that a federal court procedure should have been used. If this is not the case, is the lender subject to any oversight at all?
Do Liveaboard Boaters Receive Fair Housing Law Protection?
We live aboard our boat in a marina in Southern California, and we recently received an eviction notice. The notice was actually described as a “Notice of Lease Termination,” but since we live aboard, it amounts to an eviction. The notice provided no reason for the eviction, but we believe that we are being discriminated against because our two small children live aboard with us. We have contacted two attorneys, but we have received two different opinions about our legal rights. The first attorney said that we were protected against this type of discrimination by various fair housing laws, but the other attorney advised that we are not protected by those laws because a slip tenancy is interpreted under federal maritime law. Can you shed some light on this?
Can My Insurer Require Yacht Surveyor’s ‘Recommended’ Repairs?
I recently hauled out my boat at a local yard for routine maintenance. While it was out of the water, I had the boat surveyed — pursuant to a request by my insurance company.
We are now ready to launch the boat, but the insurance company wants us to complete all of the surveyor’s recommendations as a condition for their renewal of the policy. We’re a little annoyed at this, since a lot of the recommendations seem to be along the line of cosmetic issues rather than problems that will affect the safety or seaworthiness of the boat. We called around to a few other insurance brokers, but they all require this work to be completed. Is there any way to get around this requirement? What risks do we face if we don’t complete all the recommendations?
When Does a Lie About a Boat Offered for Sale Constitute Fraud?
I am in the process of purchasing a boat through a yacht broker. According to the advertisement, the boat had been run for around 100 hours since the engines were completely rebuilt. During my engine survey, however, my mechanic determined that the engines had never been rebuilt. I worked with the seller and the broker on this problem for a while. But several days before the deal was scheduled to close, I decided that I did not want to buy a boat that had been fraudulently misrepresented in this manner, so I backed out of the purchase. My broker now advises me that I will lose my deposit, since I had already signed the “final acceptance” line on the purchase contract. This seems ridiculous, in light of the misrepresentations about the engines, and I am considering legal action against the broker and the seller for fraud. What are my options in a case like this?
What Regulations Apply to a Bareboat Charter Yacht Owner?
I own a 48-foot motoryacht that I would like to offer for charter to offset my costs of ownership. Unfortunately, the regulations that govern this kind of operation seem arcane and decidedly unfriendly to small boats like mine. I have looked into more “creative” approaches to chartering, such as fractional ownership and bareboat chartering, but I have not been able to find much information about how those businesses should be structured. Can you help?
