Fort Lauderdale Boat Owner Sues Scout Boats and Dealer Over Catastrophic Corrosion and Structural Failures
A Florida-based yacht owner has filed a federal warranty and revocation lawsuit against Scout Boats, Inc. and dealer Seven Seas Yacht Sales over what the complaint calls “fundamental design and manufacturing defects” in a luxury 2023 Scout 377 LXF vessel. The case, Hazel Boats II, LLC v. Scout Boats, Inc. and Seven Seas Yacht Sales, Inc. (Case No. 0:25-cv-60584-MD), alleges multiple breaches of warranty and seeks full rescission of the nearly $1 million purchase.
Fort Lauderdale Buyer Claims Scout 377 LXF Delivered with Dangerous Electrolysis, Corrosion, and Structural Flaws
According to the lawsuit, Hazel Boats II purchased the Scout 377 LXF in January 2023 for $954,000. Soon after delivery, the vessel exhibited widespread and dangerous defects, including:
- Severe electrolysis and galvanic corrosion in both Mercury 600hp V12 engines
- Deterioration of underwater lights, gear case bullets, and transmission parts
- Stress cracks, gelcoat and laminate fractures
- Water intrusion, electrical system malfunctions, and hull misalignment
The owner commissioned multiple independent surveys in 2023 and 2024, all of which confirmed the vessel’s unseaworthiness and cited non-compliance with ABYC (American Boat and Yacht Council) safety standards.
Scout’s Warranty Repairs Allegedly Failed to Fix Underlying Design and Manufacturing Issues
Scout Boats transported the vessel to its South Carolina facility in late 2023 and attempted repairs over several months. But follow-up inspections in February and April 2024 confirmed many of the same critical problems remained, including:
- Improper cathodic protection of engine brackets
- Ongoing electrical wiring violations
- Recurring underwater lighting corrosion
- Noncompliant battery ventilation and fuel line routing
The plaintiff asserts that the defects are systemic and stem from “fundamental design flaws,” not isolated repairable issues.
Lawsuit Cites Magnuson-Moss Warranty Act and Revocation of Acceptance Under UCC
Hazel Boats II formally demanded rescission of the purchase on January 14, 2025, citing Scout’s failure to provide a seaworthy vessel under its limited “3-Year Stem to Stern” and “10-Year Structural Hull” warranties. When Scout refused and proposed more repairs, the owner revoked acceptance under Florida Statute § 672.608 and UCC § 2-608.
The complaint alleges:
- Breach of express and implied warranties under the Magnuson-Moss Warranty Act
- Failure of essential purpose of the “repair or replace” remedy
- Revocation of acceptance due to latent defects that substantially impaired value
- Unconscionable warranty limitations and violations of FTC rules
Yacht Warranty Lawsuit Highlights Broader Concerns Over ABYC Compliance and Industry Standards
The case raises questions about luxury boat builders’ compliance with marine safety codes and the enforceability of dealer and manufacturer warranties. The lawsuit states the vessel has logged under 100 hours—mostly related to transport and repair—not owner use.
Key legal takeaways include:
- A written warranty’s failure to resolve defects can open the door to full rescission under UCC and MMWA
- Latent design flaws may render a vessel “unmerchantable” under both Florida law and maritime law
- Courts may void warranty disclaimers deemed unconscionable or contrary to federal warranty regulations
Bought a Defective Boat? Know Your Rights Under Federal and Maritime Warranty Law
If you’ve purchased a yacht or recreational vessel that suffers from serious defects, you may have legal remedies under the Magnuson-Moss Warranty Act, Florida’s UCC, and general maritime law.
Do not assume that repeated repair offers protect the manufacturer. When a product remains unfit for use, warranty protections may entitle you to a refund, replacement, or damages.
Contact a marine warranty and product liability attorney to explore your legal options, including rescission, compensation for loss of use, and attorney’s fees.
