SPIX PRODUCTION – STOCK.ADOBE.COM

A federal judge has dismissed a class-action lawsuit that accused boat brokers of inflating sales commissions in a conspiracy that violated the Sherman Antitrust Act.

The case, originally filed in Feb. 2024, compared the listing service for yachts to the way homes are sold in the residential real estate market. It was filed following a $1.8 billion federal-court jury verdict involving the real-estate industry.

In the boating industry case, Ya Mon Expeditions LLC sued the International Yacht Brokers Association, numerous brokerage firms, the listing service Yatco and Boats Group, which is the parent company of YachtWorld, Boats.com and Boat Trader.

Ya Mon alleged that it had listed the 58-foot sportfish Click Bait for sale through Florida-based Tournament Yacht Sales. The listing agreement, according to the lawsuit, included a non-negotiable 10% commission. Click Bait sold for $1 million, and the buyer’s broker was also with Tournament Yacht Sales, resulting in the 10% commission being split between brokers at the same company, according to the lawsuit: “But for the conspiracy among the Defendants, YME would not have been forced to pay an inflated broker commission.”

Dismissing the case last week, U.S. District Court Judge K. Michael Moore of the United States District Court Southern District of Florida stated: “In considering the allegations set forth in the Complaint, the Court cannot conclude that Defendants’ actions amounted to anything more than their unilateral and reasonable decision to conduct business with licensed professionals, rather than individuals who may be unexperienced or unfamiliar with the process of selling a used yacht.”

California Yacht Brokers Association counsel Christopher Brainard said in a statement that “the Plaintiffs have 21 days to file an amended complaint, but we feel very confident at this point.”

CYBA President Mark P. White added in the statement: “I am proud of the California Yacht Brokers Association and our members for keeping their faith and resolve during this past several months as we took the initiative to defend ourselves and the brokerage community of California against these unjustified claims.”

IYBA President Paul Flannery told Trade Only Today by telephone, “We’re thankful for the judge’s decision.”

White added that defending against the lawsuit had come at a significant cost to CYBA. Donations helped to pay for the effort, including through a GoFundMe page.

“This lawsuit proved to be a weight on our shoulders but in the end, the face of common respect and adhering to our code of ethics prevailed and I thank you sincerely for both,” he said.

Dismissal of the case means recreational boat brokers will not be legally forced to adapt their business practices similar to the way real-estate agents did following that industry’s blockbuster jury verdict. The amount was lowered this past November, when a judge approved a $418 million settlement involving the National Association of Realtors, but the settlement also changed the way commissions on home sales are handled, appearing to have lowered commissions across the board for real estate agents.