Collision course over superyacht's rust problems

The problem with owning a $9 million super-yacht is that a new paint job will cost you more than the price of an average Auckland house.

That was what the owners of Ultimate Lady found when their vessel developed rust spots that were allegedly caused by iron filings from refitting work on a former Japanese fishing boat docked in Tauranga.

Ultimate Lady Ltd, represented by Iain Thain and Neil Beadle, is suing the boat Northern Challenger in the High Court at Auckland for the $360,000 cost of getting the superyacht back into shape.

The pleasure craft has been used for charters for high-paying fishing expeditions and as a grandstand for the well-heeled during the America's Cup.

Problems developed in February last year after Ultimate Lady berthed at Tauranga on the opposite side of the wharf from Northern Challenger.

Northern Challenger was being renovated on behalf of its businessman owner, Victor Bracken, who is now in Hong Kong.

The work being done on the vessel included the removal of rusty guard rails with an angle grinder.

It is alleged that iron filings from it were carried on to Ultimate Lady, which put to sea the following day and a week later was found to be covered in rust spots.

As a result of the alleged damage, the owners of Ultimate Lady had Northern Challenger arrested.

The boat is still under arrest in Tauranga Harbour.

For Northern Challenger, Alan Hassall, QC, appearing with David Allan, told Justice Hugh Williams yesterday that the claims being made were absurd.

It was acknowledged that grinding activity was going on, but the wind direction would have taken the debris away from Ultimate Lady rather than towards it.

Mr Hassall added that Ultimate Lady had "chosen" to berth at the refit wharf, where there were several other vessels, many of them fishing craft that were being worked on.

The men doing renovation work on one of the boats were described as looking like they had been "working in a coalmine."

"There are an enormous number of other sources of contaminants," Mr Hassall told the judge.

In addition, the damage could have been caused by work on the Maritime Museum while the launch was in Auckland.

Mr Hassall said the defence maintained that the chemical composition of rust particles taken from Ultimate Lady differed from the chemical composition of the guard rails, which he said meant that Northern Challenger was not the source of the contamination.

He also suggested that ash from White Island might also be to blame as Ultimate Lady had been in the vicinity of the volcano.

Lawyer Timothy Bates, representing an agent for the suppliers of goods and repairs, told the judge that Northern Challenger owed $69,000 for goods, repairs and dock charges in Tauranga.

The trial continues today.

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