Dream Yacht suspending Guaranteed Charter Income payments

[midatlantian]

I just received an emailed letter from DYC’s President explaining the severe impacts COVID-19 has had on the worldwide business.

I am an owner about one year of five into the dream guarantee program. Well, I should say I’m a boat mortgage holder LOL.

The letter declares income will be delayed for six months, and my charter management contract will be extended for six months at the end.

I understand this is a very unusual situation for everybody. I just think this sort of thing should be out in the light of day. So, first post! I’m sure there are other dream guarantee owners out there. Who knows if they’re treating everyone the same? Let’s commiserate.

I’m gonna crack open a beer. Happy Friday.

[letsgetsailing3]

Well, since you went to the trouble to make this post, would you mind explaining how this process actually works?

I'll admit, I don't quite understand it. Explain it like I'm a 5 year old.


If you've got some time on your hands, of course. Otherwise, I'll try and google it.



Thanks

[redneckrob]

Originally Posted by midatlantian

I just received an emailed letter from DYC’s President explaining the severe impacts COVID-19 has had on the worldwide business.

I am an owner about one year of five into the dream guarantee program. Well, I should say I’m a boat mortgage holder LOL.

The letter declares income will be delayed for six months, and my charter management contract will be extended for six months at the end.

I understand this is a very unusual situation for everybody. I just think this sort of thing should be out in the light of day. So, first post! I’m sure there are other dream guarantee owners out there. Who knows if they’re treating everyone the same? Let’s commiserate.

I’m gonna crack open a beer. Happy Friday.

Curious if you were given a choice in the matter or not? The word "guaranteed" apparently had some caveats it sounds like!

[midatlantian]

No choice in the matter, just a letter declaring what would be changed. (Four days before the next scheduled payment that I turn around and apply to the mortgage)

It’s certainly a breach of the Dream Guarantee contract I have with DYC. No doubt about that.
These are interesting times. It’s generally worse to be the little guy In a two-party agreement.

I imagine it would legally be doable to go retrieve my boat and sail away. But where would that leave me? Haha. I can’t actually travel to the Caribbean now due to entrance restrictions. Probably couldn’t go anywhere with it. And we’re still working stiffs.


In retrospect, there’s just too much risk and uncertainty in this “Guarantee” program. I would not recommend it to a friend unless you’re in a financial position where you could lose 500k and shrug it off. I’ve been saying that even before today’s development.

[dwedeking2]

Cheese Cake Factory just told all their landlords they aren't paying rent.

it's definitely a time when those that hold the power position in a money contract are saying ”we don't care what the contract says”.

[a64pilot]

I doubt you have any legal recourse, I bet they covered themselves from anything in their contracts, I bet there is a force majeure clause in their somewhere, I would have slipped one in and I’m no lawyer.

So you lose 6 moths of pay, your boat is 6 months older, if that’s all that happens I’d not be happy, but I’d get over it. Now if it becomes that you have to pay slip rent and maintenance fees as well as lose income, I’d be less happy, but I’m not sure what your recourse is.
Just hopefully you still have a job or income to cover yourself during this time, and it stays six months.
https://en.wikipedia.org/wiki/Force_majeure

[a64pilot]

Originally Posted by dwedeking2

it's definitely a time when those that hold the power position in a money contract are saying ”we don't care what the contract says”.

Again I’m no lawyer, but this is exactly why force majeure clauses exist, we used to write them into aircraft purchasing contracts, surely a major Corporation covered themselves with one, the owners of the building had to see it coming.

[redneckrob]

Originally Posted by a64pilot

Again I’m no lawyer, but this is exactly why force majeure clauses exist, we used to write them into aircraft purchasing contracts, surely a major Corporation covered themselves with one, the owners of the building had to see it coming.

Force majeure may allow you to break the contract. It seldom allows you to force one party to uphold their side of the contract while you are excused from upholding yours on an ongoing basis. Nor does it allow one side to unilaterally set new terms of the contract years from now! So certainly you could go retrieve your boat (if that was physically possible) and take it out of the program. While that might not seem optimal now you might wish you had in 6 months when they fold after having control of your boat for free for half a year.

I've always maintained that the counterparty risk was massive with these companies, which aren't well capitalized at all and are basically using your money to buy their product with all the risk on you. Will be interesting to see if the model holds up after this.

[a64pilot]

I’ve never seen one of their contracts, it all depends of course what the fine print says.
Before I did or even said anything to them, I’d take a copy of the contract to a Lawyer and get his or her opinion.
We are just speculating, and while I personally agree with what you are saying, it may not be the time to be bringing those things up.

I would be very surprised if they sent out a letter outlining actions they were taking, if they weren’t covered legally. That would be stupid.

[mjscottinnc]

It may well be stupid, but from the outside I don’t see any reasonable alternative to avoid litigation. Certainly worth a try.

I also wonder if the contract is binding on either party given this would clearly be an ‘act of god’

[Paul L]

Originally Posted by mjscottinnc

It may well be stupid, but from the outside I don’t see any reasonable alternative to avoid litigation. Certainly worth a try.

I also wonder if the contract is binding on either party given this would clearly be an ‘act of god’

What would the OP gain by litigation? The company is not doing this because they think they can get away with it. It is far more likely that they don't have the cash flow to make the payments. Sue them and they may need to turn to bankruptcy court. What good will that do the OP.

[valhalla360]

Originally Posted by redneckrob

Curious if you were given a choice in the matter or not? The word "guaranteed" apparently had some caveats it sounds like!

It's called being judgement proof.

What are you going to do? Sue them, they go bankrupt and now you are guaranteed zero income. At least by playing along, there is the hope after 6 months you start to see some of that income.

I also agree, it would be foolish not to include a force major, act of god, etc... clause that gives them an escape from the "guarantee" in extreme situations.

[belizesailor]

Originally Posted by mjscottinnc

It may well be stupid, but from the outside I don’t see any reasonable alternative to avoid litigation. Certainly worth a try.

I also wonder if the contract is binding on either party given this would clearly be an ‘act of god’

The best legal advice any attorney can give you is to say out of court.

[bstreep]

Forget anything "legal" with Dream Yacht. There's a paragraph saying that you have to litigate in Mauritius. Yep. Tiny island in the middle of nowhere, where ships and companies are often registered because... You get the point. After having gone through what we went through with DYCs, there's no way I could recommend anyone buy a boat or charter with them.



To the OP: I sincerely hope this works out for your. Where is your boat?

[redneckrob]

Originally Posted by a64pilot

I’ve never seen one of their contracts, it all depends of course what the fine print says.
Before I did or even said anything to them, I’d take a copy of the contract to a Lawyer and get his or her opinion.
We are just speculating, and while I personally agree with what you are saying, it may not be the time to be bringing those things up.

I would be very surprised if they sent out a letter outlining actions they were taking, if they weren’t covered legally. That would be stupid.

Every single liability release waiver you've ever signed in the US was legally unenforceable, and their lawyers were all fully aware of that fact when they drafted them. But they still have you sign them in hopes that you'll think you signed away your rights if you are hurt and not come after them. So see a lawyer... absolutely great advise. A company trying to pull one over on you by brandishing around legal terms they hope you don't understand.... standard practice and in fact not generally itself illegal so always worth a try from their perspective.

I would love to see a reacted contact if anyone has one they're willing to share.