Boatyard repossessions

[Cerddinen]

Are there any legal experts out there who can advise on the legal status of a yacht that is being sold by a boatyard because of non-payment of storage fees? I know the Torts (Interference with Goods) Act 1977 gives the yard authority to do this. But what is the position with respect to an outstanding mortgage? Does the legal right of the boatyard override that of the mortgage lender, or can the lender make a claim against the ultimate purchaser?
Any comments would be welcome.

 

[Sans Bateau]

Welcome to the forum

If you are seeking legal advise, IMO you would do better making an appointment with a solicitor.

 

[tome]

There are some legal experts on here (I'm not one of them) who may be able to answer your question. I'd be interested also as it's an interesting situation

Welcome to the forum and don't mind Galadriel who's a grumpy old git with a double hernia

 

[burgundyben]

Welcome.

I dunno the answer, I would have thought if there is outstanding mortgage that the boatyard should contact the mortgage company, the mortgage company should repossess fomr the owner and then mortgage co should take over paying for boatyard space. Once this is cleared up mortgage co would dispose of boat through auction or sale by tender?

I think whilst its mortgaged legal title rests with mortgage co?

 

[Sans Bateau]

/forums/images/graemlins/tongue.gif

 

[Channel Ribs]

I imagine that if boatyards could lay claim to mortgaged boats and sell them on legitimately, there would be some nice loop holes for escaping from debt. /forums/images/graemlins/smile.gif

Lets say our man orders a boat, then berths her at a yard; he then tips the manager the wink and 'disapears' for the proper amount of time before having a mate of his offer to buy the boat - debt free. /forums/images/graemlins/blush.gif

 

[Mirelle]

tentative answer

The boatyard has a mere shiprepairer's possessory lien, plus the contractual rights that they acquire under their terms of contract, which I will assume are the SBBNF Standard Conditions, which give an express right to sell the boat in these circumstances.

Now, the correct way for the yard to go about doing this, I think, is for the yard to bring their claim in the Admiralty jurisdiction of the local County Court, by moving for arrest, appraisment and sale. In this situation the boat is sold by the Court, and the buyer gets a perfect, clean, title.

The yard, and any claimants who intervene in the action, then get paid out of the proceeds of sale according to their priority.

The mortgagee may intervene in the action and if the mortgagee does so their claim will rank in priority ahead of the boatyard's claim, but behind certain other claims, such as salvage, collision, personal injuries, etc.

Equally the yard may intervene in the mortgagee's action.

To simply buy the boat from the yard, rather than through a court, would be unwise where a marine mortgage is registered under Part One of the MSA.

You can check whether there is a mortgage by obtaining a transcript of the register from the Registrar of Shipping and Seamen, in Cardiff. There is a charge for this but is is small change in the context of buying a boat.

 

[trouville]

Re: tentative answer

You forgot taxes they always come first in settelment!

 

[Cerddinen]

Re: tentative answer

Thanks for the answer. I suspected the position would not be simple. Professional counsel is cleary required before anything other than a token bid is made.

 

[oldharry]

Re: tentative answer

I am no legal expert, but I always understood that registered debts such as mortgages went with the boat, same as with buying a second hand car with an outstanding HP debt against it.

In the same way, outstanding yard fees have to be paid by someone before the yard allows the boat to leave. It is effectively the boat that owes the money, not the person who ran up the bill. An attitude that my yard owner tells me the Courts will support.