Introduction
The EU Directive 2013/53/EU requires that all vessels between 2.5 and 24 meters shall comply with strict standards for stability, safety, structural resistance and environmental impact.
Without CE marking, a yacht cannot legally be sold or used in EU waters. Therefore, CE requirements are not only a formality, but a real passport of legality and safety.
The issue of yachts’ safety has been recently analyzed by the Italian Supreme Court, that, with its decision no. 26487/2024, ruled on a case regarding a vessel with serious defects purchased through leasing scheme.
Italian Supreme Court, Decision no. 26487/2024
The Italian Supreme Court ruled on a case regarding a group of private buyers that purchased, by recurring to financial leasing, a yacht built in the Netherlands and financed by Intesa Sanpaolo. Soon after delivery, structural defects emerged, such as non-compliant engines, irregular documentation and absence of CE requirements.
The Port Authority of Pescara declared the vessel unseaworthy and placed it under arrest. For the buyers, this meant an unusable yacht, high costs and years of legal battles.
After initial rulings that only ordered the builder to pay damages (while excluding the bank’s liability), the contract provided for a clause which released the bank from any liability arising from any claim against the builder. The Supreme Court reversed the outcome, by stating that violating construction rules is not just a contractual breach, but a matter of public interest, therefore the Court declared both sale and leasing contract null and void for illicit or impossible object.
The Supreme Court established the following legal principles:
- Yacht’s safety is a matter of public interest
- Rules on yacht construction and CE certification protect not only private parties but a fundamental public interest: the safety of navigation.
- Their violation makes the relevant contract null and void for illicit object and it is not just a mere contractual breach.
- Yachts lacking CE requirements are non-marketable goods
- This also contributes to the nullity of the contract and the Supreme Court clarified that the above sale cannot be considered an aliud pro alio sale, which presupposes the delivery of a different but marketable good.
- Contractual interdependence between the sale and the leasing contract
- The sale and leasing contracts are functionally linked.
- Nullity of the sale contract necessarily extends to the leasing contract.
- Consumer Status and Bank Liability
- Lessees qualify as consumers, even if they are contractually referred to as “shipowners.”
- Consequently, the Consumer Code applies, and limitation of liability clauses imposed by the financing bank are ineffective.
What are the broader implications for the yachting industry?
The decision no. 26487/2024 has greater implications for several operators of the yachting industry, in particular:
- Shipyards shall keep in mind that strict compliance with EU Directive 2013/53/EU is essential. CE certification is not optional but represents a precondition for lawful commerce.
- Financiers, banks and credit institutions cannot rely on limitation of liability clauses to insulate themselves from risks tied to defective or non-compliant goods.
- Consumers may invoke consumer protection rules even when labelled as “shipowners”.
In general, the ruling signals a move towards greater accountability and transparency in yacht construction, financing and sale.
Conclusions
The Supreme Court, with its decision no. 26487/2024 reinforces the idea that EU safety regulations have civil law consequences. By declaring both sale and leasing contracts void for lack of CE certification, the Court has:
- elevated technical compliance to the level of public order;
- ensured consumer protection even in complex contractual structures;
- imposed new diligence obligations on the banking sector;
- clarified the interplay between regulatory law and contract law.
This judgment will likely serve as a leading case in future Italian and European debates on the legal effects of regulatory non-compliance, not only in the yachting sector but across industries where safety and conformity are paramount. Beyond the yachting industry, the above ruling may also affect other sectors where safety standards are mandatory, such as automotive and aviation. It shows that non-compliance with EU certification rules can invalidate entire contractual chains, as in the instant case, both sale and leasing contract have been declared null and void, stressing that businesses and financiers must adopt a culture of responsibility, compliance, and consumer protection.