Marine Repair Shop Sued After Yacht Partially Sinks Due to Allegedly Faulty Engine Work
GEICO Marine Insurance Company has filed a subrogation lawsuit against GTM International 87 Corp., a marine engine repair business based in West Palm Beach, Florida, after a partially restored yacht allegedly began taking on water and nearly sank at its dock. The lawsuit, filed under Case No. 1:25-cv-25186-BB, seeks over $209,000 in damages after GEICO paid out a total loss claim for the 2010 Sea Ray 370 Sundancer owned by its insured, NStream, Inc.
Yacht Allegedly Sank at Miami Marina Hours After Being Returned by Marine Repair Contractor
According to the complaint, on February 7, 2025, GTM International delivered the vessel back to its owner at Venetian Marina in Miami following engine replacement and transom repairs. Just a few hours later, the boat was found partially submerged in its slip, with water flooding the machinery space and reaching nearly two feet deep in the salon area.
Salvage crews from TowBoatUS responded and determined that the water intrusion was coming from the port side of the vessel. Investigators reportedly found that multiple exhaust components had been left disconnected during the reinstallation of the port engine. The exhaust Y-pipe, which was allegedly situated below the waterline, had been left open—allowing seawater to backflow into the engine compartment.
GEICO Claims GTM International Failed to Reconnect Key Engine Hoses, Leading to Water Intrusion and Total Loss
The complaint alleges that GTM International performed substandard engine work between January 23 and February 7, 2025, while the vessel was hauled at Hurricane Cove Marina & Boat Yard. The services included removing and replacing the port engine, servicing outdrives, and installing new transom plates. NStream, Inc., through owner Nikolay Nikolov, reportedly paid over $37,000 for the repairs.
GEICO alleges that GTM’s crew failed to reconnect multiple key hoses and fittings on the port engine, including the raw water intake and exhaust system. The raw water hose connected to the pump was allegedly left uncapped, compounding the ingress of water. GEICO asserts this amounted to gross negligence and resulted in the vessel being declared a constructive total loss.
Lawsuit Seeks Over $209K in Damages for Insurance Payout Following Yacht Engine Room Flood
After assessing the damage and accounting for salvage, GEICO paid out $184,951 for the hull and equipment coverage, along with $21,716.20 for labor costs and $2,406.90 for lost personal effects. The total claimed damages exceed $209,000. GEICO, as subrogee of its insured NStream, Inc., now seeks recovery from GTM International based on counts of negligence and breach of the warranty of workmanlike performance.
The complaint asserts that GTM’s owner, Keith Nay, personally delivered the vessel in an unsafe condition, knowingly failing to ensure that the exhaust and water systems were properly sealed. GEICO further alleges that GTM International’s conduct demonstrated reckless disregard for the safety of the vessel and its equipment.
Improper Marine Repairs May Give Rise to Liability Under Maritime Law
Marine repair companies are held to a high standard under federal maritime law, especially when working on critical systems like propulsion, cooling, and exhaust. When poor workmanship leads to property damage, sinking, or loss, insurers and vessel owners may pursue recovery through negligence or breach of warranty claims.
If you are a vessel owner who suffered damage due to improper marine repair, or if your insurer is seeking subrogation, you may be entitled to compensation under general maritime law.
Contact us now to speak with a maritime negligence attorney.
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.
