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Default Sold the Scout - new twist


"Eisboch" wrote in message
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"RJSmithers" wrote in message
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Whenever non-attorney's give you free advice, realize it is worth exactly
what you have paid for it.

You would not be responsible for any damages or have any more liability
than if someone stole your car and had an accident, even if it was a
fatal accident.


Probably, however Admiralty law is often different than common law. I am
not an expert, but it's something about prior liabilities follow the boat,
not the past owner. There was a case a few years back where the owner of
a boat had caused damage to a restricted sea grass area or reef or
something. He subsequently sold the boat. The environmental guys
eventually tracked the offending boat down and the new owner .... who knew
nothing of the event .... was held financially responsible. He fought it
and got the fine reduced considerably, but still had to pay something like
20K if I recall the story correctly.


I wonder if things are different if the boat is USCG documented rather than
just registered with the state?

Isn't documentation akin to title insurance?



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Default Sold the Scout - new twist


"NOYB" wrote in message
link.net...


"Eisboch" wrote in message
. ..

Probably, however Admiralty law is often different than common law. I am
not an expert, but it's something about prior liabilities follow the
boat, not the past owner. There was a case a few years back where the
owner of a boat had caused damage to a restricted sea grass area or reef
or something. He subsequently sold the boat. The environmental guys
eventually tracked the offending boat down and the new owner .... who
knew nothing of the event .... was held financially responsible. He
fought it and got the fine reduced considerably, but still had to pay
something like 20K if I recall the story correctly.




I wonder if things are different if the boat is USCG documented rather
than just registered with the state?

Isn't documentation akin to title insurance?


I don't know. In the case I described the boat was a big one and I am sure
it was documented.

Eisboch


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Default Sold the Scout - new twist

On Fri, 30 Mar 2007 15:09:28 GMT, "NOYB" wrote:

Isn't documentation akin to title insurance?


Not exactly. Documentation establishes the chain of ownership and
establishes that there are no unfullfilled *prior* liens. I have
personal knowledge of a case however where a governmental authority
threatened a lien and vessel seizure because of an alleged tax
liability incurred by a prior owner ten years in the past.

Supposedly all they have to do is notify the Coast Guard to effect the
seizure. The boat in question was bought with the usual contractural
assurances of clean title, no liens, judgements, etc plus an assurance
to defend against any such action. That is all meaningless however
unless you can get your legal hands on the prior owner(s), and
meanwhile the boat could be under seizure and tied up in litigation
until the mess is resolved.

Fortunately in this case, the governmental agency in question came to
their senses and decided not to pursue it further but it was very
messy and tense while it lasted.

One possible way to avoid or minimize such a risk is to document
offshore which breaks the USCG chain of title and makes the boat very
difficult to trace through its doc number.

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