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Floating home is NOT a boat, says US Supreme Court

Discussion in 'YachtForums Yacht Club' started by brian eiland, Jan 26, 2013.

  1. brian eiland

    brian eiland Senior Member

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    By: Associated Press/Jesse J. Holland

    WASHINGTON, D.C. (AP) -- The Supreme Court ruled Jan. 15 that a Florida man’s floating home is a house, not a boat -- and, thus, is not covered by maritime law. The case that could affect thousands of people around the country who make their home on floating structures that do not resemble traditional boats -- in marinas, bays and coves.

    The high court ruled 7-2 for Fane Lozman, who argued that the gray two-story floating home -- approximately 60 feet in length -- that he towed to a marina in Riviera Beach, Fla., should not have been affected by maritime law.

    Justice Stephen Breyer, who included a picture of Lozman’s craft in the opinion, said maritime law affects vessels that are “watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water.” The key words, Breyer said, were “capable of being used,” and the court was concerned with practical possibilities, not merely the theoretical.

    “We believe that a reasonable observer, looking to the home’s physical characteristics and activities, would not consider it to be designed to any practical degree for carrying people or things on water,” Breyer said. “And we consequently conclude that the floating home is not a vessel.”

    According to the records, Lozman’s floating home had no self-propulsion, no independent electricity, not even a rudder. To move it on water, it had to be towed.

    Justices Sonia Sotomayor and Anthony Kennedy dissented, with Sotomayor saying Breyer’s opinion creates a new and unnecessary test.

    “An objective assessment of a watercraft’s purpose or function governs whether that structure is a vessel,” she said. “The court, however, creates a novel and unnecessary ‘reasonable observer’ reformulation of these principles and errs in its determination, under this new standard, that the craft before us is not a vessel.”

    Lozman bought the 60- by 12-foot floating home -- with French doors, a sitting room, a bedroom, a bathroom, a kitchen and an office -- in 2002. In 2006, he had it towed to a marina in Riviera Beach, where he kept it docked.

    After several disputes with the city, and unsuccessful attempts to evict him, city officials used U.S. maritime law to impose a lien on Lozman’s property to cover dockage fees and damages for trespass.

    Lozman argued that his home was a house, not a vessel, which would have given it some protection from seizure under state law. But federal judges sided with the city, and the floating home was seized and destroyed.

    The city, however, was forced to post a $25,000 bond, which Lozman said he will pursue in District Court to reimburse him for the cost of his property, including the furniture and personal possessions that were destroyed after the impoundment of his property.

    The lower courts were too broad in their descriptions of vessels, Breyer said.

    “Not every floating structure is a vessel,” Breyer said. “To state the obvious, a wooden washtub, a plastic dishpan, a swimming platform on pontoons, a large fishing net, a door taken off its hinges or Pinocchio (when inside the whale) are not ‘vessels,’ even if they are ‘artificial contrivance(s)’ capable of floating, moving under tow and incidentally carrying even a fair-sized item or two when they do so.”

    A structure would not fall under the definition of vessel “unless a reasonable observer, looking to the home’s physical characteristics and activities, would consider it designed to a practical degree for carrying people or things over water,” he said.

    Two states with floating home populations -- Washington state and California -- have laws that are consistent with the justices’ opinion, Breyer said.

    “These states, we are told, treat structures that meet their ‘floating home’ definitions like ordinary land-based homes rather than like vessels,” Breyer said. “Consistency of interpretation of related state and federal laws is a virtue.”

    More than 5,000 Americans own floating homes, and there are more than 60 floating casinos in the United States.
  2. NYCAP123

    NYCAP123 Senior Member

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    That's one big can of worms they opened, and I expect it will make it hard for a lot of liveaboards to find a place to dock. Who needs a tenant they can't evict. All a tenant need do is disable his motors and his case ends up in a different jurisdiction. He could go back an forth with that one for years while paying no rent. Today the motors are disabled, it's a house. Tomorrow the motors are working, it's a boat.
  3. wscott52

    wscott52 Senior Member

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    I doubt that. I suspect they would call that a broken down boat and not a house. A boat with disabled motors was still built, and used, to carry passengers on the water. The only characteristic floating homes share with boats is they both float. I do agree this will probably make it harder to park them at marinas.
  4. NYCAP123

    NYCAP123 Senior Member

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    Many, if not most 'floating homes' share a hull with another purpose. If I were a deadbeat trying to forestall eviction I could bounce it between jurisdictions for a long time while not paying rent. Not saying I'd win in the end. Just that I could stay there long enough that, were I a marina owner, I'd only want A+ liveaboards.
  5. Capt J

    Capt J Senior Member

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    Your first post has a totally different tune. And, it talks about someone taking a functioning boat and making it non-functioning to claim not a boat, then back to functioning, which is not the case in this court case.

    I think this ruling will muddy the waters a bit. But the ruling is clearing describing essentially a floating barge home, not boat. No means of propulsion, steering, engine, or generator. It's basically a barge, with a house built on it.
  6. NYCAP123

    NYCAP123 Senior Member

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    Exactly. A barge is considered a vessel. A vessel need not have propulsion, steering, engine or generator. This ruling seems to be based on on a particular "house", but is vague enough to have broad implications. Like I said, not that I'd expect a win in the end, just that the waters are muddied enough to bounce it between jurisdictions for long enough to be a major hassle for marina owners. What immediately comes to my mind is a derelict looking sailboat, with a guy living on it, that I saw on one of the canals off Las Olas years ago. It was so encrusted in barnacles that it obviously hadn't moved for years. He could easily make the argument that it was incapable of and wasn't owned with the intention of moving, therefore eviction should be handle by the local municipality. But of course he could argue that it was in fact a boat if he got close to losing in that court. Where a contested eviction can easily take 6 to 9 months he could drag it out for a couple of years.
  7. RER

    RER Senior Member

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    Not really. Simply not maintaining a sailboat would not change it's intended design... “We believe that a reasonable observer, looking to the home’s physical characteristics and activities, would not consider it to be designed to any practical degree for carrying people or things on water,” Breyer said. “And we consequently conclude that the floating home is not a vessel.”

    BTW, many floating homes are built on dock floats or pontoons connected together to make a floating foundation - not on a barge. This construction method would clearly meet the courts definition.
  8. NYCAP123

    NYCAP123 Senior Member

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    Once again, not saying it would give a winning argument. Just enough of an argument for a deadbeat with a lawyer to delay eviction longer and cause the landlord a lot more hassles and expense. That translates into landlords being a lot more picky about who they let in. Over the past few years I've known a lot of people who have lost their rental (investment) properties because the cost of evicting a non-paying tenant was too much to bear. This adds another layer to it.
  9. Beau

    Beau Senior Member

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    Easy enough to get this protection - just write a possessory lien provision into the lease. Marina's can protect themselves with a good laywer. What happens all to often is a marina copies some other marina's contract and think they've covered their bases. Most of the time the contract they have copied is nothing more than a copy of someone elses copy. Just saying, there are always methods to protect your interests.
  10. Beau

    Beau Senior Member

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    Sorry for the double post - I obviously am computer challenged!
  11. RER

    RER Senior Member

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    While your example of copying contracts may hold true for mom & pop operations, many marinas are owned by diversified business entities and they typically rely on attorneys for such things.

    You can write anything into a contract - however when disputed, the rights and duties of the parties to the contract will be determined by the law.
  12. Beau

    Beau Senior Member

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    RER

    Agreed, but a well written contract can put the law on your side. In this instance, without knowing all the facts, it seems the marina "resorted" to the maritime law because they didn't have the simple language I described. Case closed once a properly drafted possessory lien is shown to the court in a valid non payment case. Of course, to be effective in practice, the vessel/house needs to be worth something. All to often they are derelicts, and no marina wants to take possession of that problem.
  13. NYCAP123

    NYCAP123 Senior Member

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    The question isn't what to write into a contract. That's the easy part. The question is which court has jurisdiction. No contract will cure that since the can of worms is now open. Again, we're not talking about who will win. That's a forgone conclusion. The question is will it take 6 months and $5,000 or 18 months and $15,000 to get them out. Anybody here ever deal with a welfare tenant who has decided to squat in your property? The eviction process can easily be dragged out for 9 months or more and cost you a small fortune in legal fees. Now add bouncing jurisdictions to the mix.
  14. Beau

    Beau Senior Member

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    NYCAP

    Agreed, but it has to be carefully drafted - we have all seen a lot of "budget" contracts that are like swiss cheese when a party tries to enforce them. For example, your question as to which court has jusrisdiction is always written into a well drafted contract. It should never be left unstated. A well drafted contract is crafted from the point of view that everything will go wrong, so cover it. If these type of provisions are left out, then the court has to get involved in deciding the matter. The more things that are left out, the more the court gets involved, consuming time and often leading to bad results. Again, without knowing the facts, I don't think the instant contract contained the proper possessory lien language and that's why they resorted to the maritime law as an after thought - otherwise, this case never gets to the Supreme Court of the USA?

    As for your other example about the "squatting" residential tenant, the courts are not too quick to evict someone from their home and shelter, partially due to some past practices of landlards, but a well written contract will shorten the time it takes. A commercial tenant never gets that "extra" protection in my modest experience.
  15. Fishtigua

    Fishtigua Senior Member

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    Remember that although the squatter may be sitting on his asset, it really doesn't take much effort to tow him out onto a public dock and leave him there for the public officials to sort out.

    You can't do that with a house.

    Just a thought.
  16. Capt Ralph

    Capt Ralph Senior Member

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    You can not just tow a squatter to another location. Boat or barge.
    I used to own a mobile home trailer park. Other than wife #2, that had to be the next worst days of my life. And like wife #2, the lawyers were the only winners.
  17. maldwin

    maldwin Senior Member

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    This may not be the correct thread for the following question, but as it is a legal question, I pose it here: Is it legal for the Florida Marine patrol to ask someone to leave Rybovich's basin? I came into the basin at Rybovich from the ICW, did not touch the dock, when a Florida Marine patrol asked me to leave.( I was in a perfectly maintained 1937 52 foot Jhn Hacker commuter, not the usual ride for a terrorist)
    Best,
    Maldwin
  18. RER

    RER Senior Member

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    I think the basin is a part of the ICW tide-lands which I believe is under the shared authority of the state and federal governments. So the short answer would likely be yes. If you had no business there, it would be within their authority to tell you to move along.
  19. carelm

    carelm Senior Member

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    What about how this impacts financing and tax considerations?
  20. brian eiland

    brian eiland Senior Member

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    ...from another forum

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