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Unpaid marina and shipyard fees and abandoned boats: the problems and the solutions, 14 april 2020.

Australian marinas and shipyards continue to be plagued by vessels where the rent or yard fees, sometimes mounting into the tens of thousands of dollars, have not been paid.

So, what can marinas and shipyards do in a practical sense, to overcome this problem in the problem of abandoned vessels?

The extent of the problem

Each of the marinas, shipyards and slipways we act for have all experienced these problems in recent times but the problem extends well beyond the boating industry itself stop

The various governments around the country have an even bigger problem with abandoned boats throughout local waterways.

The largest number of vessels on moorings or in marinas per state is New South Wales, closely followed by Queensland. Governments appear to struggle to get enough funding to enable them to get rid of these abandoned or seemingly abandoned vessels. There does not appear to be any statistics as to what the government authorities collectively, have been able to achieve in this respect or the costs involved. However, we do have figures for the last financial year (2019/2020) for the Queensland State Government but no information in relation to the local government and various statutory authorities involved. The Queensland Government alone, last financial year successfully dealt with disposing of or otherwise having removed, 157 vessels and in doing so, incurred costs in the millions.

Despite that, in Queensland there are still many hundreds, possibly more than a thousand, vessels which need to be dealt with and that is just in public waterways leaving aside the problem in marinas and shipyards.

Legislative solutions

In each jurisdiction there is legislation regulating how marinas, slipways and shipyards can deal with abandoned vessels or vessels in relation to which there are outstanding fees and costs. Sadly, none of the legislative arrangements provide genuinely practical solutions.  The legislative “solutions” take far too long, can be circumvented in certain circumstances and do not offer commercially acceptable solutions for marinas, shipyards and slipways.

One simple solution

Every marina and shipyard can avoid the problem very simply and that is to ensure that your marina,  shipyard or slipway/lifting facility, has a signed contract with the client/boat owner giving you, among other rights, the ability to fairly and reasonably deal with the removal or disposal of a vessel when the bills are not paid.

Sadly, we continue to see marina and shipyard operators which have lifted, slipped or stored vessels without any signed, written agreement with the vessel owners.  This means the only remedy available to the marina or yard is to rely on the commercially unsatisfactory statutory based system.

More common than that however is for there to be agreements in place, but very often, they do not have appropriate provisions which enable the marina or shipyard operator to deal with the owner of the vessel (and the vessel itself) when there is an on-going default in payment. Without the right provisions, a marine facility operator may not be much better off than having no agreement at all.

This is why it is important to have your marina berths rental agreements, lifting or slipping agreements and dry-storage agreements, prepared by an experienced maritime lawyer who knows and understands how the boating industry actually works.

The Cornwalls Maritime Law team have the expertise and know how the boating industry works in a practical sense and so can ensure that your marine facility agreements give you all the protection and necessary powers to deal with even worst-case scenarios.

Dealing with the worst-case scenario

In our experience, the worst-case scenario is having a vessel left in your marine facility or even sunk in your marina or left abandoned on your slipway, which is unseaworthy, worth nothing and there is an uncooperative owner or you cannot find them.

We have dealt with this situation a number of times. Where there are no agreements or the written agreements are inadequate, there are sometimes available other options which can work if executed properly with the assistance of an experienced maritime lawyer who understands the practicalities of the industry.

If you would like your marine facility documentation reviewed or updated, please do not hesitate to contact the Cornwalls Maritime Law team. Also, if you require assistance in dealing with unpaid marina, shipyard storage or slipping fees, call Ian Heathwood, the head of the Cornwalls Maritime Law team.

Your initial call will be free of charge as part of our commitment to helping the boating industry try to avoid problems and resolve those that do arise.

If you have any questions about this article please get in touch with the author, or any member of our Maritime team .

This information and the contents of this publication, current as at the date of publication, is general in nature to offer assistance to Cornwalls’ clients, prospective clients and stakeholders, and is for reference purposes only. It does not constitute legal or financial advice. If you are concerned about any topic covered, we recommend that you seek your own specific legal and financial advice before taking any action.

Ian Heathwood

Partner, brisbane.

• 425-486-1246

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PORT OF EVERETT ABANDONED BOATS - ONLINE ONLY

Abandon boats, start date: 11:00 am | thursday - october 18 end date: 11:00 am | thursday - october 25 preview 11:00 am to 1:00 pm | wednesday, october 24, location: port impound yard - located off west marine view drive & 13th street, everett, wa, 404 14th street everett, wa 98201.

Terms & Conditions

* All sold “AS IS, WHERE IS & WITH ALL FAULTS” (i.e. No Warranties). ADVANCE PREVIEW AVAILABLE AS SCHEDULED ONLY. * All sales are final; payment must be made at time of sale according to auction house requirements. * The Port has full authority to refuse registration or bidding to anyone deemed not in the best interest of the Port or its agents. * Minimum bids apply. Serious buyers must register to bid online in order to participate. Post-auction bids will not be considered. * Items must be promptly removed within five (5) business days at buyer’s expense. Appointment required for completion of sale.    * Status of abandonment will resume on day six if not moved or removed and purchase price is forfeited. * Vessel launch/load fees are the responsibility of the buyer, payment at time of service and scheduled by appointment. * Moorage/Storage/Work Yard accommodations not guaranteed at the Port of Everett (conditional upon qualifications and subject to availability).

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Little Green Island back in Australian hands after $5.6 million sale to Mackay family

By Sarah Simpkins

ABC Tropical North

Topic: Real Estate Industry

Little Green Island is off the coast of Mackay. ( Supplied: Harcourts MackTown )

Little Green Island has been sold at auction to a North Queensland family for $5.6 million.

The sale of the freehold island, which was owned by producer and actor Douglas Gresham, attracted buyers in person and online.

What happen's next:

The sale of other assets including a catamaran yacht and an amphibious motorboat are being negotiated.

A tropical island in North Queensland that inspired the Chronicles of Narnia movie franchise is back in local hands after 15 years of foreign ownership.

Little Green Island, a seven-minute boat ride from Mackay's northern beaches, sold at auction for $5.6 million today.

The island has been owned by British-American movie producer and actor Douglas Gresham, who purchased it for $2.45 million 15 years ago.

Its new owners, a Mackay family who asked not to be named, secured the island after a two-way tussle with another bidder, also from the Mackay region.

Bidding started at $2 million for the 24.4-hectare island, which has a house and a caretaker's cottage, both set in a rainforest with a freshwater lagoon.

Mackay's Little Green Island was auctioned at Shoal Point Park, with potential buyers bidding in person, online and on the phone. ( ABC Topical North: Danielle Jesser )

The beachside auction with the island in the background lasted about 15 minutes with six others bidding by phone from interstate and internationally.

The director of real estate agency Harcourts MackTown, Tina Sander, said the sale of a private island with freehold title was a rare offering in Queensland.

Ms Sander said Mr Gresham and his family watched the auction live from Malta.

Mr Gresham is the stepson of C.S. Lewis, the author of the Chronicles of Narnia.

"It's the island that was the creative inspiration for the Chronicles of Narnia movies," Ms Sander said.

A family escape

Mr Gresham was not available for comment, but his real estate agent said he was now in the "later stages of life and his family are winding down all of his assets".

"Douglas now lives in Malta and he can no longer travel internationally and they've never, ever holiday let the island," Ms Sander said.

"He bought the island so he and his family could come on holiday whenever they wanted and holiday in confidentiality.

"It's always just been for personal family use only.

"The family just feel it's time to pass on the island to a new family or to a new owner."

Little Green Island comes with a swimming pool and deck overlooking the Coral Sea. ( Supplied: Harcourts MackTown )

One-time home of Edward de Bono

The island's earlier claim to fame was as the sometimes home of creative guru Edward de Bono.

The Maltese physician and commentator who invented the term "lateral thinking" hosted "corporate think tanks" on the island.

The main house has two bedrooms and two bathrooms, and was designed by renowned architect and Australian Architecture Association president Tone Wheeler in 1995.

The two-bedroom house is a modern take on a Queenslander-style home. ( Supplied: Harcourts MackTown )

"The main house is a modern interpretation of a Queenslander-style home, with a pool and deck overlooking the Coral Sea," Ms Sander said.

A second house on the island was designed to be a caretaker's residence.

A once-in-a-career opportunity

Ms Sander said she was contacted by the owners "out of the blue" six months ago.

"I haven't sold an island before," she said.

"I think it'll be a once-in-a-career, lifetime opportunity."

Ms Sander said she had around 300 inquiries about the island before it went to auction.

Some inquiries came from overseas, but she said the most genuine interest was from Queenslanders and Victorians.

Bids for Little Green Island were registered from people in person, online and on phones. ( ABC Topical North: Danielle Jesser )

"All different age brackets, different demographics, different careers [made enquiries]", she said.

"Some people wanted to use it for holiday letting, others were wanting to use it for family.

"Some people just want a great place to go and holiday in private and not have streams of other people."

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