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Charter damage: how long can the charter company claim?
Short answer
Under German law, an owner's claims for damage to a hired yacht become time barred six months
after the yacht is returned, section 548 of the German Civil Code.
This only applies to charter agreements governed by German law,
and it does not always protect your deposit.
This page is about bareboat charters under a charter agreement governed by German law, for example with a German agency or a base on the Baltic or the Mecklenburg lakes. Such a charter is usually a contract of hire. German law gives the owner a short limit for damage claims: claims for changes to or deterioration of the hired thing are time barred six months after the owner gets it back, section 548 paragraph 1 of the German Civil Code. The clock starts when you hand the yacht back at the base, not when the paperwork ends.
Three points limit what that rule does for you. First, it only applies where German law governs the contract; a charter in Croatia, Greece or the United Kingdom usually follows local law with its own limits, and the agreement normally says which law applies. Second, negotiations about the damage suspend the period under German law, section 203, so the clock stops while you are still writing to the base. Third, an owner may still set off a claim that was not yet barred at the time of return against your deposit, section 215.
In practice, write down the date and time of return, get the check out report signed and keep the photographs from check in and check out. If a late invoice arrives, check first which law the agreement names, then the date. Do not acknowledge the claim before that is clear, because under German law an acknowledgement restarts the period, section 212. For larger sums, talk to a lawyer or a legal expenses insurer; this page is general information, not legal advice.
Worth remembering
6 months
from return of the yacht under German law
Deposit
may still be set off later
Put the date of return in the check out report. It decides when a late claim is time barred.
Questions
What owners ask us about this
When does the six month period start?
On the day the owner gets the yacht back, in practice when you return it at the base. That is the rule in section 548 paragraph 1 of the German Civil Code.
Does the limit apply to a charter in Croatia or Greece?
Only if the charter agreement chooses German law. Many agreements with bases abroad follow local law, which has its own time limits. The governing law is usually stated in the agreement.
Can the base keep my deposit after the period has run?
Often it can. Under German law a claim that was not yet time barred when the yacht came back may still be set off against the deposit later, section 215 of the German Civil Code.
Related
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