Montana Company Sues South Coast Holdings to Clear Clouded Title on 65-Foot Azimut Motor Yacht
Beverly Hills Exotic Collections, LLC, a Montana-based company, has filed a maritime declaratory relief lawsuit against South Coast Holdings, LLC in the United States District Court for the Southern District of Florida. The legal action, filed under Case No. 1:26-cv-20026-JB, seeks a court order to invalidate a maritime lien filed against a 2011 65-foot Azimut motor yacht currently located in Miami-Dade County.
Yacht Owner Seeks to Extinguish Outdated Maritime Lien on 2011 Azimut Vessel Named Boat
The plaintiff is the registered owner of a vessel formerly known as the M/Y Recovery Racing, now known as the M/Y Boat. According to the complaint, the defendant, a New Mexico limited liability company, filed a Notice of Claim of Lien with the United States Coast Guard National Vessel Documentation Center in early 2021. The lien allegedly stems from an amount of 72,000 dollars that was reportedly established on August 1, 2020. The yacht owner asserts that this recorded lien has created a significant cloud on the title, materially impairing the company’s ability to sell the vessel free and clear of all claims.
Complaint Alleges Abandoned Maritime Lien and Violations of Federal Documentation Statutes
The lawsuit contends that the defendant’s claim of lien is both false and defective. The plaintiff alleges that the claimant failed to provide proper notice of the filed lien as required by federal maritime statutes. Under 46 U.S.C. Section 31343, parties filing a lien are required to submit a declaration confirming that notice has been sent to the vessel owner and other interested parties. The owner of the vessel claims they never received such notice and only discovered the existence of the lien while performing due diligence in preparation for a potential sale of the yacht. Furthermore, the owner denies that any of the amounts claimed in the lien are validly due or owing.
Vessel Owner Invokes Doctrine of Laches and Statute of Limitations to Void Longstanding Lien Claim
A primary argument in the complaint is that the lien should be extinguished under the Doctrine of Laches due to unreasonable delay. The owner points out that the alleged lien was established over five and a half years ago, yet the defendant has never taken any legal action to foreclose on the claim or enforce its alleged rights. The plaintiff argues that the defendant has effectively abandoned the lien. To support the claim of unreasonable delay, the legal team references various statutes of limitations for breach of contract, noting that the five-year limit for written contracts in Florida and the four-year limit in California have both expired. Because maritime law often looks to these statutes as a guideline for laches, the plaintiff argues the lien is now barred by law.
Federal Court Asked to Order Coast Guard to Remove Defective Lien from Vessel Abstract of Title
In the request for relief, Beverly Hills Exotic Collections, LLC asks the court to declare the maritime lien invalid and without merit. The lawsuit specifically requests a judicial order directed to the United States Coast Guard National Vessel Documentation Center to extinguish the lien from the vessel’s abstract of title. Additionally, the plaintiff is seeking an award of reasonable attorneys’ fees and costs associated with the litigation, as permitted under federal maritime law when a lien claim is found to be invalid or defective. The owner maintains that because no action was taken to enforce the debt for years, the cloud on the title must be removed to allow for the lawful transfer of the property.
Contact a Maritime Lien and Yacht Title Lawyer Today if You Need to Clear a Vessel Claim
Yacht owners and maritime businesses facing clouded titles or fraudulent maritime liens must act quickly to protect their property rights under federal law. Disputes involving the United States Coast Guard National Vessel Documentation Center and claims of lien require specialized knowledge of the Ship Mortgage Act and supplemental admiralty rules. If you are struggling to sell a vessel due to an outdated or defective notice of claim of lien, contact our team of experienced maritime attorneys today to discuss your options for seeking declaratory relief.
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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.
