Florida Yacht Owner Sues National Maritime Services After Luxury Vessel Damaged While in Custodial Arrest
Happy Ending Yacht, LLC, a Fort Lauderdale-based yacht owner, has filed a maritime negligence lawsuit in the Southern District of Florida against National Maritime Services, Inc. The complaint, filed under Case No. 0:25-cv-62124-WPD, alleges that the luxury yacht Happy sustained significant and avoidable damage while in the care of National Maritime, which had been appointed as Substitute Custodian during a federal foreclosure action.
Yacht Owner Alleges National Maritime Failed to Maintain Vessel During Court-Ordered Custody
According to the complaint, the 90-foot Hargrave motor yacht was seized by the U.S. Marshal on May 8, 2025, following a foreclosure lawsuit brought by a third party. The federal court appointed National Maritime Services, Inc. as the Substitute Custodian to oversee the safekeeping and routine maintenance of the vessel during its arrest. Plaintiff Happy Ending Yacht, LLC claims that during the three-month period of custody, National Maritime failed to perform even basic upkeep, leaving the vessel unattended for extended periods and denying access to the yacht’s own crew.
The lawsuit states that National Maritime rejected repeated requests to allow the vessel’s captain to board for routine care and maintenance. Meanwhile, the custodian allegedly neglected to conduct inspections or preventive work necessary to preserve the yacht’s condition. As a result, the Happy reportedly suffered widespread deterioration, including both interior and exterior damage.
Lawsuit Details Damage from Mold, Corrosion, and Flooding Caused by Neglect
Plaintiff alleges that a wide array of damage occurred due to the Substitute Custodian’s failure to meet its court-ordered obligations. The exterior of the vessel allegedly became stained with runoff and mold, while stainless-steel hardware, painted surfaces, and gelcoat areas oxidized due to lack of cleaning. Canvas covers became water-stained, and deck areas accumulated mold and debris. Blocked drains reportedly caused water to overflow and damage components including the rudder table and steering gear.
Inside the vessel, conditions allegedly worsened due to water intrusion and environmental neglect. A burst pipe led to flooding, which in turn caused wood veneers and interior joinery to swell and warp. Upholstered furnishings were allegedly embedded with mildew and grime. Two air handling units reportedly failed due to disuse, and marine growth clogged the sea chest, rendering the engines temporarily inoperable. Interior lighting and electronics sustained corrosion damage from excess humidity. The complaint asserts that all of these issues could have been prevented through routine inspections and maintenance.
Substitute Custodian Accused of Gross Negligence and Breach of Maritime Duty
The lawsuit emphasizes that National Maritime Services, as Substitute Custodian, held the same legal duty as the U.S. Marshal to safeguard the vessel in its pre-arrest condition. Happy Ending Yacht, LLC claims that the company breached this duty by failing to provide basic services, including regular cleaning, environmental control, and monitoring of the yacht’s systems. The plaintiff also alleges that the damage was not due to wear and tear or preexisting conditions, but directly caused by neglect during the arrest period.
Further, the complaint notes that National Maritime assigned personnel unfamiliar with the vessel’s systems and maintenance requirements. As a result, critical drainage systems were ignored, interior ventilation was not maintained, and the yacht’s complex environmental and electrical systems were allowed to degrade.
Plaintiff Seeks Recovery for Repair Costs and Loss of Vessel Value
Happy Ending Yacht, LLC is seeking damages for the extensive repairs required to restore the vessel, as well as for loss of value caused by corrosion, staining, and mechanical failure. The lawsuit requests judgment against National Maritime Services for negligence, plus pre- and post-judgment interest and court costs.
This case serves as a cautionary tale about the importance of custodial care during maritime vessel arrests. Under admiralty law, court-appointed custodians have a non-delegable duty to maintain seized vessels in good condition. Failure to uphold that duty can expose custodians to legal liability for any resulting damage or deterioration.
Contact a Florida Maritime Negligence Attorney for Custodial Yacht Damage Claims
Yacht owners whose vessels have been damaged during custodial arrest or federal seizure may have legal claims under maritime law. Substitute Custodians and service providers must follow strict standards of care to protect vessels during litigation. If your yacht suffered harm while in court-ordered custody, our experienced maritime attorneys can help you evaluate your options for recovery.
Contact us today for a confidential consultation with a Florida maritime negligence lawyer.
Disclaimer: Our firm does not represent the plaintiff in this case and is not involved in the litigation. The information provided is a summary of allegations based on publicly available court filings. We make no representations about the truth of these allegations, are not commenting on the merits of the case, and are not predicting any outcome.
