Hawaiian officials and the investors behind a yacht that damaged coral and rock on Maui have reached a tentative settlement. The investors will pay $117,471.97 to cover the natural resources damage and government administrative costs from the Nakoa yacht grounding. The owner of the yacht, however, potentially still faces hefty fines.
Hawaii’s Board of Land and Natural Resources (BLNR) approved the proposed settlement on July 28. According to a settlement document from the Hawaii Division of Land and Natural Resources (DLNR), for which the board serves, the New Mexico-based Albert Revocable Trust and its trustees, Kevin and Kimberly Albert, agreed to the fine. The settlement releases them from any future claims resulting from the Nakoa yacht grounding and related issues. The grounding damaged 119 coral colonies and 17,658 square feet (1,6450.5 square meters) of live rock. “This fine reflects a conservative estimate of the amount required to compensate the State, that is consistent with similar coral damage fines,” indicates the DLNR’s Division of Aquatic Resources. That division conducted an inspection of the original damage (below).
The 94-foot (28.65-meter) Nakoa sank in March, nearly two weeks after running aground on February 20. Although the investors weren’t onboard, the owner who financed the yacht through them was. In fact, that owner, Jim Jones, admitted to tying up for the weekend to a mooring buoy permitting two hours of use when her line failed. The megayacht drifted onto rocks and a reef in Honolua Bay. Within a day, Nakoa’s hull punctured, and fuel began spilling. Despite a salvage attempt on March 5, she sank within minutes of becoming free.
In related news, on March 13, the Albert Revocable Trust filed suit against Jones, his yacht-charter company, and his captain. The lawsuit indicates that Jones and his company used the yacht “in a grossly negligent manner” during an unapproved personal voyage. It further indicates that the two breached a purchase agreement under which Jones would be liable for loss or damage.
In announcing the settlement with the trust, Dawn Chang, DLNR chair, says, “We realize that for the Maui community, especially those who cherish Honolua Bay, this settlement may be disappointing and not enough.” She points out that the tentative settlement reimburses the state significant costs. (Salvage costs were not included, since they were already covered by Jones’ marine insurer. The state isn’t holding the salvage operators liable for damage from towing the yacht free, either.) She additionally says, “We will continue to aggressively pursue those who harm our cultural and natural resources.”
Jones may be among those parties. In fact, the BLNR is still exploring ways to hold Jones and his company liable for cultural and natural resources damage. It wants to weigh cultural impact, not just natural resources impact. “He should not be permitted to operate any commercial activity on our ocean waters,” Chang says. “He’s not demonstrated that kind of trust.”
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