Lawyer Monthly Magazine - May 2019 Edition

76 Professional Excellence www. lawyer-monthly .com MAY 2019 SUPERYACHT LAW Many are unaware of a ‘supery- acht lawyer’; can you share more on what you do? We provide legal advice and practical guidance in relation to all aspects of yachts and su- peryachts. Our day to day work deals with ownership, sale, pur- chase, finance, dispute resolu- tion, insurance, management, advising a large variety of par- ticipants in the yacht industry; these clients may be the own- ers, managers, insurers, yacht brokers, yards and marinas. We have considerable exper- tise in many superyacht related matters, such as: building and refit contracts, urgent casu- alty response (personal injuries, groundings, salvage, towing, etc.), chartering, crewing and employment, dispute resolu- tion, insurance related matters, management, marina and yard´s liabilities, sale and pur- chase, registration and finance. We are particularly involved in the new aspects of racing rules, regattas and sports law, cyber- crime and its insurance. Why and when should a client hire you to act as a superyacht lawyer? Problems with superyachts do occur and generally re- quire immediate action and a cross-border perspective. I have considerable experience in handling disputes across this spectrum. I am available 24/7 together with our firm´s emergency response team. Our experience derives from our long history as specialists in maritime law. Our team also In this article, we explore the reasons behind needing a legal expert for the purchasing and ownership of yachts and superyachts. We speak with Bernardo Ruiz Lima more about this. What Is the Purpose of a Superyacht Lawyer? has extensive practical sailing and sea-going experience on- board yachts and superyachts, grand-prix racing yachts and private pleasure crafts giving us an in-depth understanding of the industry. I also work closely with our commercial, employ- ment and ship finance groups so that I can advise clients on the broad range of superyacht matters. We have global reach with offices in countries also known for ‘yachting’ and ‘su- peryachting’ including Spain, UK, France, Greece and Singa- pore. Our team and I can read- ily advise on multi-jurisdictional issues affecting superyachts. What are the pre-contract considerations a UHNW should make prior to designing or pur- chasing their yacht? The buyer or the future charter- er of a superyacht has to take care of many legal aspects and practicalities before order- ing the design or the construc- tion of a complex high-value project. Most probably, several jurisdictions will be involved with different applicable laws and several international treaties. Therefore, a reliable law firm, with international presence, and a lawyer with relevant ex- perience are essential. After thedecision ismadeabout the designer of the project, and before signing the contract with the builder, a UHNW should be given strong advice on the lo- cal legal aspects of the coun- try, including: where the supery- acht will be built; the possible use of a SPV; the finance, mort- gages, possibilities of using a tax Bernardo Ruiz Lima Partner www.thomascooperlaw.com Tel: +34 91 781 6670 Mob: +34 65 896 8466 Email: bernardo.ruizlima@ thomascooperlaw.com LinkedIn: https://www.linkedin.com/in/ bernardo-ruiz-lima-b5296667/ About Bernardo Ruiz Lima I am a Spanish qualified lawyer and Partner at Thomas Cooper LLP, Madrid office. I am a key contact for yacht and superyacht related matters in the firm. I hold an LLM in Maritime Law, International Trade and Marine Insurance from Cardiff University (UK). I am currently completing a PhD, focusing my final dissertation on insurance. I am a teaching professor for a number of Master degrees and specialised courses in Spanish Universities. I am also a qualified Average Adjuster having taken courses at the Spanish Merchant Academy (COMME); an Arbitrator and mediator; and member of the Spanish Maritime Law Association and the Spanish Arbitration Association. lease scheme; the cross border tax implications; the choice of registration and flag; and to negotiate taking good care of possible insolvency risks; refund and performance guarantees; variation of contracts, etc. What are the most troublesome aspects of the contract when building or purchasing a yacht? There are many legal aspects that should be taken into ac- count by a UHNW. Among others, I would highlight the fol- lowing troublesome aspects: fi- nance, leasing structures, cross border and tax implications, payment schedules, insolvency risks, delays in delivery, insur- ance, confidentiality, variations of contract, warranties, agree- ment of a good dispute reso- lution clause, implications of a future commercial use of the superyacht and the crew prob- lems. How does insurance work in this area? It is essential to liaise with a re- liable and first-class insurance company, not only post-deliv- ery (H&M, P&I, etc.) but also to cover the design and building process. An in-depth analysis of policy covers should be taken with brokers and legal advice should be sought. I recommend requesting and reviewing the builder´s risks policy (with the insolvency cover) and always think carefully about the insur- ance value and the possibility of asking for a waiver of the yard´s rights, in case of negligence of the owner or the owner´s servants. LM