Storm-Tossed Yacht on the Move (stuck since Hurricane Wilma)

Looking like Noah's Ark after the flood, a sleek, 158-foot yacht driven aground by a hurricane lies just offshore, mired for most of the past two years in a dispute with the government over how to free it without doing too much damage to the seagrass.

Through it all, the boat's owner, Peter Halmos, has stubbornly insisted on staying aboard or living close by on a cluster of houseboats so he can guard his beloved Legacy against pirates and thieves plying the calm green-and-azure waters off Key West.

A Hungarian emigre who made a fortune selling theft protection to credit-card holders, Halmos estimates he is spending more than $1 million a month maintaining the houseboats and moving the Legacy, which is finally — though slowly, very slowly — being pulled free.

Plastered with "No Trespassing" signs, the sailing yacht with a gleaming white bridge sits upright in less than a foot of water about two miles offshore, a tattered American flag flying above. Its mast and boom are gone, its dark-blue hull is scuffed, its wooden deck weatherbeaten.

Halmos, who is in his early 60s, was aboard the Legacy with six others when Hurricane Wilma struck in October 2005. Instead of heading out for the open sea, he decided to drop anchor and ride out the storm near shore.

But the anchors did not hold, and Wilma repeatedly lifted the boat and slammed it down. Everyone donned lifejackets.

When the storm had passed, the Legacy was aground miles away from where it had anchored, stuck in the sand in a federally protected area where sensitive varieties of seagrass provide a habitat for fish.

Not true, unless the act of abandonment is formal or the boat is not indicated as being under current ownership. I’d say flying a flag and displaying a placard that the boat is occupied and owned is good enough. Looting, however, is probably the biggest problem he has.

Salvage - the law

In order to salvage property under maritime law, the property must be subject to a marine peril placing it at risk to loss or deterioration (a salvor can argue that a recently sunken boat is subject to deterioration or risk of loss due to shifting, etc.); the act of salvage must be voluntary rather than the result of a contractual or other duty (a professional salvor is still considered a volunteer); and the act of salvage must be at least partially successful. Salvage requires the express or implied consent of the owner. However, an abandoned vessel may be salvaged without consent. It is for this reason that it is important that owners of sunken vessels mark their vessels and leave some evidence affixed to the boat indicating an intent to claim the vessel.

Salvors cannot keep the vessel in their possession. They are required to return possession of the vessel to the owner. If they cannot find the owner, they must file an action of salvage in a U.S. District Court (or appropriate foreign admiralty court) and “surrender” the vessel to the court. The court then determines the amount of the salvage award the salvor will receive. A salvor who loots a vessel or is grossly negligent in the recovery of property will forfeit the right to a salvage award. “Ordinary” negligence of a salvor will reduce the amount of the award.

Salvage awards are determined by, among other factors, the effort expended by the salvor, the skill of the service rendered, the value of the property and the amount of risk to which the property was exposed. The award cannot exceed the value of the vessel. In the case of the recovery of a recently sunken sail or power boat, I would not expect the award to exceed 25% of the value unless some extraordinary effort was made by the salvor or the vessel was in true, imminent, peril.

The Wreck Act

The owner of a vessel sunk (or aground) in navigable waters of the United States is required by Federal law to mark the wreck as soon as possible. (Marking for both day and night are required). The owner of a missing vessel must use diligent efforts to locate the vessel and mark it. The owner must also continue to check the markings to make sure that they are in working order and accurately reflect the current position of the vessel. The owner also must “immediately” commence the removal of the wreck. The courts have interpreted “immediately” with reference to a “reasonable” time frame, so a boater who has been devastated by a hurricane where few maritime resources are available will not be help to the same time frame as a boater in a more “normal” sinking situation. The owner can be liable for damages sustained by anyone as a result of the wreck as well as the cost of removal of the wreck. If you want an expensive removal bill, let the government do it for. If another vessel collides with your sunken vessel (or if a fishing net gets torn on it) you could be liable for the resulting damages.

If the owner of the vessel was not negligent, (s)he may abandon the vessel to the U.S. Coast Guard or Army Corps of Engineers. After abandonment, the non-negligent owner is no longer responsible for damages to third parties but may be liable for the cost of removal. If you do not intend to try to recover your vessel, you should consider abandoning as soon as possible. The government routinely takes the position that it will not accept the abandonment; however, your best protection (if you decide to abandon) is to formally abandon it and fight about whether the government must accept the abandonment at a later date. Many marine insurance policies have express provisions regarding abandonment and recovery of vessels — take no action until you have reviewed your policy.

“Peter Halmos made his millions the hard way. He started a company from scratch based on a simple idea: that people would pay a fee for credit-card protection.

In 1969, at the age of 25, with $1,000, the Hungarian émigré with an MBA from the University of Florida, and his younger brother Steven launched SafeCard Services from the bedroom of Peter’s Fort Lauderdale condo.

By 1992, it had 13 million customers, $22 million in earnings and $2 billion in market capitalization, according to BusinessWeek magazine. Eventually, Halmos stepped down as CEO and chairman and became a consultant before leaving the company for good. With new management in place, SafeCard nose-dived. The Internal Revenue Service raided SafeCard in a tax fraud investigation, sparking a decadelong fight between Halmos, the IRS, the Securities and Exchange Commission and his former company.

Eventually Halmos secured an apology from the IRS and $81,602,839 from SafeCard’s new owner, CUC International Inc., according to an announcement by Halmos at the time.

The lawsuits cost him $45 million, according to BusinessWeek.”

http://www.palmbeachpost.com/accent/content/accent/epaper/2007/02/04/a1D_marooned_0204.html

Length overall 158 ft / 48.17 m
Waterline length 126.5 ft / 38.57 m
Beam 30.2 ft / 9.2 m
Draught (keel up) 11.1 ft / 3.38 m
Draught (keel down) 25.3 ft / 7.71 m
Hull Steel
Superstructure Aluminium
Maximum displacement 387 t
Gross registered tonnage 309 t
Engines 2 MTU 12V 183 TE 62
Power at maximum continuous rating 2 x 550 kW (750 Hp)
Speed at maximum power 14.8 kt
Speed at maximum continuous rating 14.5 kt
Range 4,000 nm @ 13 kt
Fuel capacity 42,000 lt
Main mast height above DWL 146.9ft / 44.8 m
Mizzen mast height above DWL 120.9 ft / 36.85 m
Total sail area 10,657 ft² / 990 m²
Total deck area 3,445 ft² / 320 m²
Cockpit area 527 ft² / 49 m²
Saloon and wheelhouse area 1,227 ft² / 114 m²
Total owner and guest cabin area 1,055 ft² / 98 m²
Total crew area 861 ft² / 80 m²
Lazarette area 237 ft² / 22 m²
Classification A.B.S. A1 Yachting Service + AMS + ABCU
Registration George Town - Cayman Islands
Delivery August 1995
Interior Design Perini Navi
Naval Architecture Perini Navi
Builder Perini Navi - Viareggio, Italy

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