The choice of law and choice of forum clause you sign today can decide, years later, whether you are paid a cent after a casualty.  
 
Owners, managers and brokers still wave certain clauses through as “just boilerplate”, yet both headline cases below prove that a poorly chosen jurisdiction or a one-sided governing law clause can paralyse legal recovery.  
  
Luxury yachts are designed to outrun storms and cross oceans, yet the biggest waves that hit an owner’s balance sheet are often legal. Two recent judgments – the English Commercial Court’s 2020 My Song ruling and the US Supreme Court’s 2024 decision in Great Lakes Insurance SE v. Raiders Retreat Realty – have rewritten the risk-management playbook for everyone who builds, ships, manages or insures a vessel worth more than a small island.  
 
So what actually happened, why does it matter and how can the superyacht community turn these courtroom lessons into operational advantages? 
 
THE FALL OF MY SONG: HOW A €27 MILLION SLOOP BECAME A CARGO LAW CAUTIONARY TALE
 In May 2019, the 39-metre Baltic sloop My Song slid off the deck of the heavy-lift ship Brattingsborg en route from Antigua to Genoa. The cradle, supplied by the yacht, assembled by its crew, collapsed and the yacht was lost. Litigation erupted in England and Italy.  
 
In [2020] EWHC 2150 (Comm), Christopher Hancock KC, sitting in London’s Commercial Court, ruled on several key points. He determined that a yacht shipping booking note incorporating BIFA standard terms constitutes a “contract of transport” rather than a simple forwarding agreement. Furthermore, he ruled that the yacht owner, Italian businessman Pier Luigi Loro Piana, was not considered a consumer for EU jurisdiction purposes; his marketing use of the yacht created sufficient business nexus.  
 
The exclusive English law and jurisdiction clause survived challenges based on consumer protection arguments, ensuring that the dispute was heard in London. Hancock also found that Weco Projects, the bareboat charterer, could rely on the contract’s Himalaya clause for certain defences, although it could not apply the jurisdiction clause wholesale.  

The importance of maintaining a clear evidence trail cannot be overstated. In My Song, courts scrutinised WhatsApp messages and cradle-assembly photos.

Ultimately, the issues of negligence and quantum were never litigated, with sources confirming a confidential settlement reached in 2023. 
 
The owner accepted BIFA standard terms – complete with an English law, London court clause – because the forwarder “always used them”. When the cradle failed, that clause yanked the dispute out of Italy (where the yacht and evidence were) into London, multiplied litigation expense and locked liability to a microscopic 2 SDR kg.  
 
The key takeaway here is that you can negotiate higher limits, mixed arbitration panels or split forum language for ancillary defendants. If the forwarder refuses, shop elsewhere or buy full value transport insurance before the ship sails.  

40-metre Baltic 130 My Song, delivered in 2016. Image credit: Ingrid Abery

What the industry must fix 
One critical area of focus is the cargo cradle and lashings. If you supply or modify the cradle, liability can be directed back at you, as courts treat custom cradles as warranted equipment. To mitigate this risk, it’s recommended to insist on class-approved transport cradles that are load-tested and photographed, icluding a “No owner equipment unless class-certified” clause in booking notes can help safeguard against potential liabilities. 
 
Another area of concern is the contract boilerplate. Under BIFA and FIATA terms, carrier liability is often capped at around 2 SDR per kilogram, which is negligible for a high-value carbon-fibre racer. To protect against this limitation, purchasing separate cargo-all-risk cover at an agreed value is essential. Moreover, negotiating raised limits or bespoke riders before signing any booking note can provide extra security. 
 
Jurisdiction clarity is also vital. Anti-suit injunctions can potentially freeze proceedings in what is deemed the “wrong” forum, thereby delaying necessary repairs. To avoid this, aligning the charter party, carriage contract and hull and machinery policy on a single forum and law set is important, ensuring consistency and reducing the risk of jurisdictional conflicts. 
 
Lastly, the importance of maintaining a clear evidence trail cannot be overstated. In My Song, courts scrutinised WhatsApp messages and cradle-assembly photos.  
 
To strengthen your case in the event of a dispute, adopting a digital transport log that includes geotagged images, cradle torque specifications and survey certificates is recommended. This log should be stored in the vessel’s Safety Management System (SMS) for easy access and long-term preservation. 
  
GREAT LAKES V. RAIDERS RETREAT: CHOICE OF LAW CLAUSES ARE KING
 On 21 February 2024, the US Supreme Court ruled unanimously that choice of law clauses in maritime insurance contracts are “presumptively enforceable” unless they clash with a higher federal statute or entrenched maritime policy.  
 
Justice Kavanaugh’s opinion reversed the Third Circuit, which had suggested Pennsylvania public policy might override a New York law clause in a yacht policy after the insured’s 51-foot cruiser grounded in Florida.   
 
But why does this matter? 
 Global insurers gain predictability when jurisdiction and governing law clauses are clear. Underwriters can price risk accurately, knowing that state consumer statutes won’t override the agreed-upon law. This stability ensures more accurate risk assessments and fairer premiums. 
 
Warranty breach defences are also strengthened. For instance, if your policy specifies “maintain certified extinguishers,” as the Great Lakes case did, non-compliance – even if unrelated to the loss – can result in voided cover. This highlights the importance of following every policy condition to the letter. 
 
Forum shopping becomes irrelevant when a policy specifies federal admiralty or New York law, making attempts to sue in a “friendlier” state futile. This ensures that the legal framework is clear and predictable, avoiding any manipulation of jurisdiction. 
 
For European owners cruising the US East Coast, it’s crucial to understand that any dispute will likely be resolved in federal court, applying the policy’s chosen law. Negotiating these terms wisely upfront is essential, as there will be no opportunity to renegotiate once litigation begins. 
 
The lesson here is that the yacht owner never questioned the New York law clause stapled onto the policy. After grounding, he tried to invoke Pennsylvania’s consumer-friendly statutes; SCOTUS shut the door. The clause he had “just accepted” barred him from those protections.  
 
Forum shopping is dead – but forum choosing is very much alive. Nail down the law and venue that best fits your operational footprint and balance of power now, not in a claim.  
  
Five cross-currents both cases send through the superyacht ecosystem 
 Contract hygiene is now more important than ever. Whether you're moving a 180-footer as deck cargo or renewing her bluewater hull, it's essential to avoid relying on “standard form” agreements. Every clause now has real weight and must be thoroughly reviewed. 
 
Evidence has become your new lifejacket. Crews need standard operating procedures (SOPs) for using phone cameras: photographing lashings, equipment tags, fire extinguisher certificates and more. Insurers and judges both appreciate time-stamped photos, which serve as crucial evidence when conditions need to be documented. 

Annually, conduct a tabletop exercise with legal counsel, walking through a hypothetical grounding or transport loss under the actual contracts. This exposes potential conflicts of law and jurisdictional issues early, helping to avoid costly surprises later.

Compliance logs have evolved into marketing assets. Demonstrating flawless maintenance and cradle certificates not only enhances resale value but can also help reduce insurance premiums. This proactive approach offers significant advantages both in terms of value and cost. 
 
Aligning the “trinity” of charter, carriage and cover is now a key step. Conflicting law and forum clauses can create complex litigation. To avoid this, it’s important to use a single governing law matrix across all contracts, ensuring consistency and reducing legal complications. 
 
Finally, budgeting for professional risk audits is becoming necessary. Carriers may soon require third-party cradle surveys and policy warranty audits before lifting your yacht. While these costs may seem high, they are trivial compared to the potential financial loss from being uninsured. 
  
Action checklist for owners, managers and brokers 
 For your next renewal, verify every warranty, including those for fire systems, crew certificates and lay-up conditions. If any issues are unavoidable, consider adding a “discovery and remedy” grace period clause to prevent instant denial for minor technical breaches. 
 
Before the next deck shipment, embed a yacht cargo rider that includes a class-approved cradle, independent survey, extended carrier liability and specifies English law/LMAA arbitration. This narrows disputes to quantum rather than jurisdiction, making them easier to resolve. 
 
On a quarterly basis, run an audit of the cradle and safety equipment and upload the results to the vessel’s electronic SSMS, sharing them with underwriters. This may result in a 5 to 10 per cent reduction in premiums. 
 
Annually, conduct a tabletop exercise with legal counsel, walking through a hypothetical grounding or transport loss under the actual contracts. This exposes potential conflicts of law and jurisdictional issues early, helping to avoid costly surprises later. 
  
Spotlight Box — how I negotiate jurisdiction and governing law. Yes, it is possible.
 
A single clause may not suit the shipper, charterer and yard when negotiating parallel jurisdictions. In such cases, drafting a step-clause, with mediation first and then arbitration in a neutral seat (for example London or Singapore), can provide a fair and balanced approach. 
 
For hybrid law, some disputes are pure tort (negligence), while others are contractual. Separate cargo damage claims (under English law) from crew injury claims (under Flag-state law) in order to leverage the best precedents for each. 
 
Standard freight agreements often cap liability at trivial amounts. Insist on a “Yacht Cargo Rider” that lifts liability limits to at least €10 million – or require the carrier to co-insure. This ensures your yacht is properly covered for the value at stake. 
 
Local convenience is another key consideration. Evidence, witnesses and experts often reside where the yacht trades. In these cases, argue for forum conveniensce choosing a court that’s within easy reach of the casualty location. 

Establish a walk-away threshold. If the counterparty refuses to compromise on law/forum clauses and offers no premium discount, walk away. The survivability of your claim is far more important than today’s freight rebate.

Legal culture and speed differ greatly between venues. Some courts grant summary judgment quickly, while others move slowly. Benchmark court timelines and push for arbitration rules that offer expedited procedures, ensuring a quicker resolution. 
 
Red Flag Rule: If the contract drafter says, “These clauses are industry standard, remember: so were the shackles on the Titanic’s spare lifeboats. 
 
Operational checklist – Turning clauses into competitive advantage 
First, ensure alignment between the hull policy, management agreement and any carriage booking by repeating the same governing law and forum language across all documents. This will prevent the need to juggle multiple litigations after a single incident. 
 
Second, engage local counsel early. Have maritime lawyers in your primary cruising region vet every standard form before signing. A two-hour review costs far less than one hour of federal court discovery. 
 
Third, treat jurisdiction clauses like safety gear by inspecting them annually. A new financier, new Flag or new charter market can change what “best” jurisdiction means, making regular checks essential. 
 
Fourth, document the debate. Record in Board or Captain’s logs that jurisdictional choices were discussed and explain why specific clauses were selected. This will protect against future claims of unequal bargaining power. 
 
Finally, establish a walk-away threshold. If the counterparty refuses to compromise on law/forum clauses and offers no premium discount, walk away. The survivability of your claim is far more important than today’s freight rebate. 
 
The clause that saves the yacht  
 A superyacht is equal parts engineering and emotion; neither survives long in a legal vacuum. My Song shows that a €27 million masterpiece can vanish in seconds – and that courts will dissect your paperwork line byline afterwards. Great Lakes warns that you cannot later plead “homestate fairness” once you have signed away that comfort in a choice o flaw clause.  
 
Speed, steel and carbon keep the ocean at bay; well-negotiated jurisdiction and governing law clauses keep the courthouse doors open when the ocean wins.  

Owners who invest as much thought in their legal battlefield as they do in range, draft and décor will never find themselves stranded by an unpayable claim or an unreachable courtroom. In today’s supercharged market, that is not just best practice, it is seamanship.  

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