Owners of superyacht lose rust damage case

By TONY STICKLEY

The owners of the $9 million superyacht Ultimate Lady have lost their claim that refit work on a nearby fishing vessel caused rust to stain their boat's pristine paintwork.

Ultimate Lady Ltd was claiming $385,000 for repainting and ancillary work from the ship Northern Challenger.

Both vessels were at the Tauranga refit wharf in February last year when an old, unsafe guard rail was being ground and cut from the Northern Challenger.

During an 11-day hearing before Justice Hugh Williams in the High Court at Auckland, it was claimed that iron filings drifted across to the Ultimate Lady, damaging its paintwork.

The judge was told that rust marks on the 27m wave-piercing catamaran had to be got rid of to make it presentable for high-paying clients wanting towatch the America's Cup.

This week Justice Williams ruled in a 97-page reserved decision that Ultimate Lady had failed to prove that it was probable the contamination came from grindings from the Northern Challenger's guard rails.

Costs, still to be assessed, were ordered against the plaintiff.

Yesterday, Northern Challenger's lead counsel, Alan Hassall, QC, said that the costs would be substantial.

The Northern Challenger, which was being refitted for crayfishing in Tongan waters, has been under arrest for 18 months.

Mr Hassall said that he understood that the ship had suffered serious deterioration during that time.

It was possible, he said, for Northern Challenger to sue, but because it was an admiralty jurisdiction proceeding, the requirements for a successful claim due to arrest were "somewhat stringent".

"But that will be looked at to see what can be done," he said.

Mr Hassall said that arrangements would have to be made to pay Refit New Zealand and local merchants about $70,000 before the Northern Challenger could be released from arrest.

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