Hill Dickinson’s Hong Kong office successfully defends world-renowned yacht brokers against contractual claims

The Hong Kong office of commercial law firm Hill Dickinson has acted for an international superyacht broker operating in Hong Kong. The firm obtained a favourable judgment from the High Court of Hong Kong, which rejected a claim against its client relating to delivery of an Italian-built Azimut 43 Plus. 

Partner Damien Laracy led a team of assistants, including associates Douglas Lee and Janice Yik, in conducting the case.

The purchaser commenced the action in 2011 and the trial concluded at the beginning of October 2015. The High Court handed down its judgment on 22 May 2016.

The purchaser alleged that there had been misrepresentations and breaches of implied conditions of contract relating to alleged malfunctioning of the joystick control of the yacht and her bowthrusters and subsequently sought to rescind and/or repudiate the principal sale and purchase agreement.  

As a result of the purchaser’s refusal to take delivery of the yacht for which he had paid (he was also being criminally investigated for unrelated matters) our client was left with the substantial costs of berthing and maintaining it. Hill Dickinson arrested the yacht on behalf of the client, in order to be able to then sell it (again) free and clear of any encumbrances via a High Court Judicial Sale.

The yacht was subsequently sold by the Admiralty Bailiff pursuant to a court order for the appraisement and sale of the yacht. The sale proceeds were paid into Court.

The Court considered the evidence of the parties, including expert evidence regarding operation of the joysticks and bowthrusters of the yacht, and found that the purchaser was a ‘recalcitrant witness’ and the client’s witnesses were reliable and truthful. The Court dismissed the purchaser’s claim and awarded judgment in favour of the seller on its counterclaim against the purchaser, together with interest and costs.

Read the full judgment online.