Watch out this summer sailing season for what we consider to be sleazy charter boat tactics to avoid owner liability. In short, a person buys a boat, financing the loan through renting the vessel out for day-trips. The sleaze being that the owner has the renter sign a “bare boat charter” agreement. A true bare boat charter means the renter takes on full responsibility and may use the vessel for any lawful purpose and take it anywhere: the charterer becomes the owner in effect. The trick is that all of these day-tripper “bare boat” agreements do not allow such rights and are not true “bare boat charters;” yet, the owner will want to walk away from any tragedy the owner caused.

     Berschler Associates, PC are counsel to victims in a death case in Maryland Federal Court which arises out of what I contend is also an “unlawful” charter, in which the owner is operating passenger vessel for profit in practical effect; yet trying hide behind an alleged “bare boat charter” document. It is actually a time charter in legal effect, a much different contract with vastly different legal obligations. The ploy of “bare boat charter” was being used to avoid U.S., Coast Guard requirements appearing in 46 CFR Subchapter T - SMALL PASSENGER VESSELS. 

This entry has been created for information and planning purposes.

It is not intended to be, nor should it be substituted for, legal

advice, which turns on specific facts.