The Firm has successfully represented a client in a dispute regarding the non-fulfilment of a contract concerning, among other things, the sale of a pleasure craft.

The Client entered into a transaction agreement with a leasing company which according to the contract was supposed to transfer the vessel’s ownership to the Client “also taking care of all the necessary measures” ‒as provided in a specific clause‒ within a certain date, set at the beginning of the summer season.

However, due to delays which were attributable to the company, the transfer was entered in the records of the competent Harbor Master and on the navigation license almost one month past the agreed date, therefore the Client suffered damages caused by the impossibility to use the boat which was in a non-EU country.

The leasing company was summoned to appear at Court and defended itself by claiming it had fulfilled its obligations as the conclusion of the agreement and its registration to the Revenue Office had taken place within the prescribed period.

However, in its judgment of 9 January 2017 the Court of Milan accepted the Firm’s arguments in full, noting that, under the principle of good faith, the necessary formalities mentioned by the transaction should certainly be considered “extended to the preparation of all the documentation needed in order to allow the legitimate movement of the boat also from an administrative point of view, ie through a title that is ostensible even to the public authorities responsible for navigation control, and therefore not only from a private law perspective, but also from the point of view of enforceability against third parties”.

Therefore, the defendant was ordered to pay all damages suffered by the plaintiff.

(Bologna Office – Andrea Giardini – 0039 (0)51 2750020)

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