Acquaviva Ltd. and Daniel Spisso v. Hatteras/Cabo Yachts, LLC., Versa Capital Management, and Brunswick Corp., Case No. 4:17-cv-00025-BR (United States District Court for the Eastern District of North Carolina, Raleigh Division, September 30, 2021)

The owner (Acquaviva/Spisso) of a new 2017 model 70MY Hatteras yacht alleged that Hatteras (the yacht builder) and its predecessor were negligent in causing a fire in the yacht’s engine room while underway on its maiden voyage because the fire originated inside a Hatteras employee’s tool bag.  The vessel owner claimed uninsured property damage and personal injury resulting from the fire.  He also attempted to revoke acceptance of the $5 million yacht, claiming the yacht was defective and its value substantially affected by the fire.  The vessel owner asserted 15 different legal claims against Hatteras for tort, contract and commercial violations, conversion, bad faith, and unjust enrichment.   In September of 2020, summary judgment was obtained dismissing the predecessor company (Brunswick), and dismissing 4 of the 15 total counts against Hatteras.  In June 2019 a 5-day bench trial was held.  At the close of the vessel owner’s case, directed verdict was granted in favor of Hatteras on 8 of the claims, narrowing the remaining claims down to only 3- negligence (property damage only), breach of contract, and bad faith.  On September 30, 2021 the Court issued its Findings of Fact and Conclusions of Law and entered Final Judgment in favor of Hatteras on all remaining claims.  Final Judgment was also entered in Hatteras’ favor on its affirmative claim for repayment of the cost of necessaries furnished to the vessel during an 8 month period of time after the fire, and the vessel owner must pay Hatters the sum of $17,000.  Hatteras’ Motion for Taxable Costs and Motion for Rule 37 Attorneys’ Fees for discovery violations revealed during the course of trial, remains pending.

HM&B Partner Krista Fowler Acuña was lead on this matter, along with Partner Jason Bloom and Associate Elisha Sullivan.