The Class-Action Suit That May Bring Down the U.S. Yacht Brokerage Industry (As We Know It)

THE FIRST OF A SPECIAL-EDITION SERIES TRACKING THE SUIT AND SEEKING TO UNDERSTAND ITS ELEMENTS AND POTENTIAL FALLOUT GOING FORWARD

Preface: Loose Cannon and For Yacht Builders, Buyers, and Owners have teamed up to bring Substack readers and subscribers ongoing coverage of the class-action suit recently filed against fifteen firms in the yacht sales sector, including a number of yacht brokerage firms and several of the brokerage-sector associations to which they belong. The suit alleges that the defendants engaged in a scheme that cheated thousands of yacht sellers.

The allegations and the circumstances are remeniscent, although not identical to those present in a recently-settled suit against the National Association of REALTORS®. Consequently, we believe this latest suit will be of significant interest to boat buyers and sellers alike — indeed, to just about everyone in the yachting and boating sector.

For this special-edition series, Peter Swanson, publisher of Loose Cannon, will handle primarily the news end of things, reporting on the progress of the case and the suit. For my part, I’ll be handling primarily background on the brokerage sector, its structure, practices and foibles. Among other things, Peter has substantial experience in what we call “legitimate news journalism”, so he is in his element covering the progression of the suit. Me, I have more than 40 years background in the recreational marine sector, including experience with yacht brokerage operations and management.

Finally, note that Peter and I will be “cross posting” our contributions to this series. Which means you’ll be able to read all of the posts in the series on either Loose Cannon or For Yacht Builders, Buyers, and Owners — or both. depending on where you’ve subscribed. Looking forward to welcoming you aboard!

Or, if you’ve already read the first installment, sign up below for the entire series ongoing:

FROM LOOSE CANNON by Peter Swanson (March 07, 2024)

So, Is There Really a 'Rule' That Helps Yacht Brokers Fix Sales Prices?

Hints at a Lawsuit Defense; Plaintiff Asserts Lofty Goal

At left is Todd Lochner, representing one of the two broker associations and Kevin Neal, representing an unhappy boat seller, emerged as spokesmen for opposing sides.

Associations representing nearly 3,000 U.S. yacht brokers this week began defending themselves against a $5 million-dollar lawsuit that seeks to dismantle the entire yacht brokerage system as we know it. Lawyers involved have now issued public statements.

(Note: Loose Cannon and For Yacht Builders, Buyers, and Owners have teamed up to bring you complete coverage of every development in Ya Mon v. IYBA et al. from now until settlement or jury verdict, plus additional background information and discussion concerning the structure, practices, and foibles of the U.S. yacht brokerage industry. Sign up for a paid subscription and receive stories about the twists and turns of litigation, as well as the rest of the story, right into your email inbox.)