Federal Judge Dismisses Class Action Alleging Inflated Yacht Commission Fees

A federal judge in Florida has dismissed a proposed class action lawsuit alleging that some of the largest entities in the yacht brokerage industry conspired to inflate sales commissions, according to Reuters. The case, which sought to challenge the standard practices of yacht brokerages, was ruled insufficient to proceed due to a lack of evidence supporting claims of collusion.

U.S. District Judge K. Michael Moore in Miami ruled on Tuesday that the plaintiffs, a group of yacht sellers, failed to demonstrate that brokerages, yacht associations, and a yacht listing service collaborated to fix commission rates. Moore also noted that it was not unreasonable for brokerages to prefer working with sellers represented by agents.

The lawsuit, initially filed in February 2024, targeted the International Yacht Brokers Association, Boats Group LLC, and other defendants, including prominent platforms like Boat Trader, Yacht World, and Boats.com. The plaintiffs accused these entities of violating antitrust laws by mandating a 10% commission on the sale price of vessels. The commission is typically split between the agents representing the buyer and the seller.

Read more: Top Agent Network Drops Antitrust Suit Against National Association of Realtors

The lawsuit drew comparisons to the real estate industry, where a wave of litigation has challenged the traditional commission structure for home sales. According to Reuters, similar lawsuits in the real estate sector have led to over a billion dollars in settlements between sellers and major brokerages. However, the court found the yacht sellers’ claims insufficient, distinguishing the yacht brokerage industry from its real estate counterpart.

The defendants argued that the yacht sellers were attempting to “piggyback” on the momentum of lawsuits against real estate brokers and the National Association of Realtors. They maintained that the yacht brokerage sector operates differently, lacking a dominant trade association or a single essential platform that could enforce industry-wide commission standards.

Moore’s ruling applied to three consolidated cases, effectively dismissing the claims as unsupported by evidence. Representatives for the International Yacht Brokers Association, Boats Group, and the plaintiffs, including Ya Mon Expeditions, did not immediately respond to requests for comment, Reuters reported.

Source: Reuters