HMB successfully defended yacht builder, Hatteras/Cabo Yachts, LLC. and related companies in a lawsuit by the purchaser and owner (Acquaviva/D. Spisso) of the new 2017 model 70MY Hatteras yacht. Acquaviva/Spisso alleged that Hatteras and its predecessor were negligent in causing a small fire in the yacht’s engine room while underway on its maiden voyage, which 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 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. Acquaviva/Spisso appealed final judgment to the 4th Circuit Court of Appeal. Based upon the briefing (without oral argument which the Court declined) a Per Curiam Affirmance was issued by the appellate court in favor of Hatteras on all issue. Acquaviva/Spisso have filed a petition f rehearing en banc.
HM&B Partner Krista Fowler Acuña was lead on this matter, along with Associate Elisha Sullivan, and special assistance on the appeal by Partner Michael Dono.