Yacht-Broker Lawsuit: Defense Strategy Emerges in Rogue Pleadings

We're Not Like Realtors, Denison's Lawyers Argue

A broker for fictional “Donaldson” Yacht Sales of South Florida—not to be confused with Denison Yacht Sales of South Florida—loses a listing at the end of the 1992-movie “Captain Ron.” The part is played by Paul Anka, also known for his singing and songwriting.

“If commissions are not plausibly alleged to be ‘high’ or ‘inflated,’ it stands to reason there can be no antitrust injury.”

Targeted by litigation to disrupt the American way of buying and selling boats, several yacht brokerages and the corporate owners of Yacht World listing service are coalescing to craft a common defense.

Judge Michael Moore of U.S. District Court in Miami recently gave defendants more time to gather exculpatory evidence and formulate arguments.

Moore’s order was in response to a motion by Northrop & Johnson, Galati Yacht Sales, MarineMax, United Yacht Sales, HYM Yacht Sales, Permira Advisers and Boats Group. (The Yacht World multiple-listing service is controlled by parent companies Permira and Boats Group.)

The judge’s order applies not only to those above defendants who asked for the delay but also to the two defendant broker associations, the other defendant multiple-listing services and the remainder of the broker-defendants, including Denison Yacht Sales.

However, rather than seek the comfort of the herd, Denison had gone rogue. Brushing aside the promise of more time, Denison’s lawyers went ahead and filed a motion to dismiss the charges against Denison alone, throwing Galati and Allied Marine under the bus by arguing that if anyone were guilty, it would more likely be those two.

What This Story Is About

Denison lawyers also argued the case as a whole, and thus their pleadings likely constitute a beta version of what the rest of the defendants will eventually offer up in their defense. According to Attorney Christopher M. Brainard, the suit against Denison is a “cut and paste” of the recent class-action lawsuits that disrupted the commission system for America's real estate transactions.

Lawsuit Rocks the Yacht-Sales World

Except, Brainard said, the system for selling boats is only superficially like home sales. He told the judge that the arguments that sunk the National Association of Realtors simply do not apply to the mechanics of yacht sales. He could easily have summarized his position by quoting that recently rediscovered appeal to a California jury: “If the glove doesn’t fit, you must acquit.”