Fort Lauderdale Tugboat Company Exonerated in $4M Yacht Sinking Case

CSK Maritime Litigation Group
Miami Partner Richard Rusak | Board Certified in Admiralty & Maritime Law
Miami Associate Alaire Bretz
Miami/Jacksonville Associate Nicole Habina

Case Summary
A 116-foot luxury yacht was being towed for repairs at a Fort Lauderdale, FL boatyard when it partially sank, causing extensive water damage and resulting in a constructive total loss determination. Following the incident, the yacht’s insurer sought reimbursement from the tug company for the insurance payout, while the yacht owner pursued additional claims for uninsured losses.

Defense Strategy
The CSK Maritime Litigation Group immediately launched an investigation, meeting with the tugboat captains, visiting the scene of the sinking and inspecting the damaged yacht. Their strategy centered on demonstrating that the tugboat captains acted as reasonable prudent mariners and that the yacht’s owner and captain failed to present a seaworthy vessel for towing.

Opposed to waiting for the tugboat company to be sued, the CSK Maritime Litigation Group took the offensive and petitioned the federal court to exonerate their client from any wrongdoing or limit its liability to the value of the tugboats used in the tow. This strategic move forced the yacht’s insurer and owner to participate in the admiralty federal action on the defense’s timetable. 

The CSK Maritime Litigation Group next took targeted depositions to further bolster the defense theme including exposing admissions from the yacht’s captain that the yacht was neglected for several years.

Outcome
The federal court ruled that the tug company was not responsible for the yacht’s sinking, finding that the tugboat captains acted appropriately and that the sinking was a result of the yacht’s owner failure tender a seaworthy vessel. The ruling sets a meaningful precedent for future maritime tug and towage cases nationwide.