Unpaid yard bills?

here's a basic idea of what would happen, of course it depends on the country the yacht was arrested in and i am not a lawyer.

- the coast guard will inform the yacht that an arrest has been placed on the yacht and will confiscate the yacht's documents.

- yacht could sail after owner settles the claim or provides security for the value of the claim. If the yacht is insured for such a claim the insurance company would offer a letter of undertaking or if rejected they would offer a bank guarantee. after security has been provided then the yacht will sail and the two sides will fight it out in court.

- if no security is provided the claimant could apply for judgement in default and the yacht will be auctioned/sold by the court.

if the yacht is sold there will be a ranking of liens (creditors rights to be paid) which is defined in the law of the country the arrest was made and differs from place to place. then the proceeds from the sale of the yacht will pay those liens in the sequence of the ranking until the money is finished and everyone else further down the ranking will not be paid.

arrest is a gamble though. in the worst case many other creditors might join in and arrest the yacht. then the mortgagee bank might also and depending on the jurisdiction and therefore the ranking of liens, the bank might have priority over your claim and there will probably not be enough money to pay everyone.

I have seen a 130 foot yacht in Miami that owed MTU money. MTU did all the legal stuff then hired a cop to sit on the boat and make sure it did not leave the dock. Plus they put all those bright red stickers every were for every one to see, basicaly stating the owner was a dead beat.

If you can PM me the name I might e able to give you some more details.

US Customs also like to plaster stickers al over boats so MTU are not alone

In the US a vessel can be arrested prior to any judgment. Under these circumstances, the vessel is generally arrested by a US Marshall as a result of a Federal Court order. When arrested, the vessel is physically seized. It may be moved to an alternative location and/or have a replacement captain assigned to it, initially all at the expense of the party seeking to arrest the vessel. If the claimant wins, the costs are assessed against the boat. The vessel's owner can bond the vessel out and slug it out in court at a later date. Arresting a vessel does not come cheaply, but due to the "mobility" of the vessel, it is a pretty strict law. If a vessel skips on a boat yard in Florida, it can be arrested any where in the US by any US Marshall. There are also ways to extend the "arrest" on an international basis, depending upon the host country.

there is no information here at the moment that indicates who is in the wrong. it could be a dispute with the shipyard over quality of repair or costs.

Captains and vessels are always free to dispute a bill or object to the quality of work. What they can not do is leave the yard without making satisfactory arrangements towards the payment of all outstanding charges. A bond, letter of credit or bank guarantee usually works. Once bonded, the vessel is free to leave and the litigiation or arbitration can come in due course.