Boat Share Dispute

Bennyboy · #1 (**permalink**) 04-28-2011

I want to know if anyone can advise on the rights (Legal)? on boat share ownership
Although we bought the boat Leisure 22 equally between 3 of us signed over on RYA sale agreement now in our 5th year I now wish to dispose of my share I have made an offer to my two partners to buy me out or alternatively they find an acceptable person to buy my share this has been met with frosty silence we did not put anything in writing regarding rules and regulations but I have always contributed more than a third in annual fees mooring insurance and maintenance costs Additionally I have done more of the physical work in maintaining her
Unfortunately one guy seems to think he owns the boat and we are just crew he makes all the decisions and rules without consulting me and when I suggest something constructive he just shouts me down and becomes aggressive particularly in front of other club members and I find this very humiliating

What rights do I have and should I pursue this through the County Court if they refuse to comply with my requests?
Many Thanks
Ben

cwyckham · #2 (**permalink**) 04-28-2011

I think you're taking the wrong tack. Why would they want to buy you out or find another buyer? It's not in their interest. You need to find the buyer. If you truly own a third of the boat, then you have the right to sell it.

Still very tricky that nothing is written down. I just sold my one third share of a boat in a much more friendly situation. Rule was that other partners had veto on the new partner coming in just in case there was a personality conflict or something.

Any chance you can get a written agreement now? That would give you something concrete to present to a potential new partner. Doesn't have to be fancy or involve lawyers, just a summary of everyone's understanding of the rules around liability, insurance, responsibility for damage, decision making process for upgrades, how to decide who gets the boat when, and things like that.

Chris

rdw · #3 (**permalink**) 04-28-2011

Without having all this planned out form the beginning you are up against what one person thinks is fair is not thought to be fair by someone else. My suggestion would be what I have heard referred to as a Dutch auction. The first person wanting out offers his share for sale to the others. He lets the others determine the price that is fair for the share and then the first guy gets the option to buy or sell. The roles can be reversed. It is a good way to establish a fair price. this is not perfect because the two other partners may not want to sell or buy. You could get a court to force a sell of the whole boat to desolve the partnership.
If you get married again think preneptual agreement.
RDW

rockDAWG · #4 (**permalink**) 04-28-2011

Since there is no exit clause in the partnership agreement. The only thing you can do is find your own buyer and then offer the partners the first refusal. If you can't sell your share to the 3rd party, you stuck. Depending how much money you have laid out on this boat, You can take a default and walk out. Your next move of action really depends on the partnership agreement, read and study carefully.

Good luck. Stay away from lawyer, work with your partner and get it resolved. In the long run, it cost you less.

Good luck.

bubb2 · #5 (**permalink**) 04-28-2011

tell your partners if they don't buy you out then you are going to auction your share off on Ebay and they can take their chances as to the new partner they are going to get.

rockDAWG · #6 (**permalink**) 04-28-2011

Quote:

Originally Posted by bubb2

tell your partners if they don't buy you out then you are going to auction your share off on Ebay and they can take their chances as to the new partner they are going to get.

That is an excellent idea. It will force them to come to the table.

Minnewaska · #7 (**permalink**) 04-28-2011

You may need the other owners to sign the new title/registration if you even try to sell your third. This is a real mess. Get an attorney. No other way.

rockDAWG · #8 (**permalink**) 04-29-2011

Quote:

Originally Posted by Minnewaska

You may need the other owners to sign the new title/registration if you even try to sell your third. This is a real mess. Get an attorney. No other way.

It is unlikely that the OP has any stipulation in their signed document, if any at all. Yes, it is a mess. Without any prior agreement, it is easier to workout among partners. If this takes to the lawyer, everyone will lose except the lawyer. May be it is the only way if the partners lose their common sense.

QuickMick · #9 (**permalink**) 04-29-2011

how much do you figure she is worth? hate to say it but if you lawyer up you attorney's fees will probably eat up at least 1/3 to 1/2 of your proceeds? Here is one that was listed for 8 so (though i dont know the year of yours)
1976 Leisure 22 sailboat for sale
... maybe sold for 6-7 and change? assuming 7, your share would be 2300ish... cant imagine a lawyer touching this for less then a grand especially considering the lack of documentation of the 'agreement'
maybe just ask the other parties for a grand each and wash your hands of it.
good luck

hellosailor · #10 (**permalink**) 04-29-2011

Benny, you've dug yourself into a nice hole there. I'll rashly assume that RYA means you are in the UK someplace, so what you might need next is a solicitor.

Or, you buy your partners lunch and some drinks and tell the, right, I've got to be selling my interest in this boat, either we can work something out or I've got to call a solicitor and it will just work out being more expensive all the way around.

In any case, you will be bound by contract law in your venue, whatever that may be. You may or may not actually even be able to sell your share of the boat. You may or may not be legally able to sell it to anyone you please, with or without the consent of the other two. Or, who knows, you may be able to force the sale of the entire boat and split it by three.

GET LEGAL ADVICE FROM SOMEONE WHO IS LICENSED TO PRACTICE LAW IN YOUR VENUE. Then take the partners to lunch for a simple heart-to-heart.

In the US, a short (1/2 hour to hour) consult with a storefront attorney would probably run $75-200 for the initial meeting. If you think the partners are going to argue, spend that before you talk to them. Otherwise, expect that you might have to spend it after the lunch anyhow.

Among other things, you'll probably disagree over who and how the boat is valued, even if you sell your share on the open market.