LITIGATION
MULTI-JURISDICTIONS
huge expertise in evidence and deciding commercial disputes.
Disputes can arise for any number of reasons, but the most common causes of superyacht litigation are new build contracts and sale and purchase contracts. Often it will be the case that a superyacht does not comply in all respects with its contractual specification and/or a buyer will be unhappy with some aspect of their purchase.
Although a contract may be governed by English law, it should not be forgotten where the service is being undertaken. If a superyacht is being built in Italy, the UK, Germany or Turkey, for example, there are different local laws regarding insolvency, title and security that should be considered. If the contract does not include a law and jurisdiction clause, there is a risk the contract will be governed by an unwanted law. Always consider what local laws may apply to your transaction.
Why litigate?
• Those unfamiliar with arbitration or the court system can be daunted by the prospect of litigation. However, the vast majority of disputes do not proceed to a full hearing or trial. The aim of litigation is not to drive the parties toward a day in court, but to resolve disputes. Many find litigation to be a useful tool for reaching a commercial solution, and we always advise our clients with their commercial objectives firmly in mind.
How do I know what my rights are?
place where the person to be sued carries on business may become significant. It is best not to leave these matters to chance, and to make express provision in the contract wherever possible.
• The first place to look is the contract itself and how it allocates the risk in the
transaction as between the buyer and the builder and/or seller. If there are particular aspects of the superyacht or of the transactional process that are especially important to a party, then it is important to ensure those aspects are dealt with up front in the contract, rather than trying to retrospectively imply terms into a contract.
Court or arbitration?
• Arbitration is seen as less formal and less costly to start than court proceedings, which are considerably stricter from a procedural point of view. It is a matter for debate whether it is still true that arbitration is less costly as the matter progresses, but it remains the case that it can be a more flexible method of dispute resolution. Arbitration also has the benefit of being confidential. On the other hand, although it is more expensive to start proceedings in the English courts, there is a great benefit of having judges dealing with the matter as they are very experienced lawyers with
Where can I sue/be sued?
• This depends largely on what the relevant contract says. If it is considered important for disputes to be dealt with within a particular jurisdiction, then provision should be made for this at the contract stage. Where a contract is silent on jurisdiction, then factors such as the governing law, the place of delivery of the superyacht, and the
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