For ultra-high-net-worth individuals (UHNWIs), few possessions embody luxury and prestige like a superyacht. These floating palaces, often worth tens or hundreds of millions, are not just boats but complex legal entities that require specialist expertise. John Leonida, of Counsel at Wordley Partnership, is a pioneer in superyacht law, bringing decades of experience to an industry where glamour meets intricate legal challenges. Keen for a deeper understanding of this remarkable world, I sat down with Leonida to discover the unique intricacies of advising some of the world’s wealthiest individuals.
You work with some of the world’s wealthiest people, often dealing with situations relating to their most valuable assets. Can you tell us about your work, your background, and how you came to specialise in superyacht law?
I work with the ecosystem surrounding some of the world’s wealthiest individuals, particularly when they recognise that superyachts are a unique asset class requiring specialised legal, industry, and market knowledge. Many owners, often first-time yacht buyers, lack basic knowledge of the maritime law underpinning superyachts. Caught up in the excitement of ownership, they may not realise they are becoming shipowners with significant responsibilities. Superyachts are akin to floating real estate, not waterborne cars, yet many owners purchase or commission them without specialist legal advice. I’ve often asked why even astute businesspeople, who would never buy an apartment without due diligence, overlook this for a superyacht costing far more. Typically, they rely on the confidence of those selling the yacht.
My background is unconventional for this field. I started as an economist with the UK Foreign Office’s Overseas Development Administration. At 34, I requalified as a lawyer, joining Clyde & Co as a banking and ship finance solicitor. In 1998, a series of fortunate events led me to focus on superyachts instead of tugs and LNG carriers. By 40, I was a partner and likely the first to market myself as a superyacht lawyer, elevating the niche from general shipping law to a recognised discipline.
You’re now Of Counsel at Wordley Partnership, a firm known for professional sports and high-profile reinsurance cases. How does the superyacht world compare?
Both superyachts and professional sports involve high-profile individuals whose actions attract public scrutiny, creating unique risk profiles. These fields require tailored underwriting that considers not just the asset – be it a yacht or a sports club – but the individuals involved. Without this, superyachts would be insured like standard ships, and sports would be treated like any other business. The high stakes in both mean that failures have far-reaching consequences beyond the immediate asset or entity.
What makes superyacht law more complex than other areas of legal expertise?
Superyacht law isn’t necessarily more complex, but it is uniquely unpredictable. In high-value transactions elsewhere, you typically deal with experienced counterparties. In superyacht deals, you often have one inexperienced party – the owner – and one highly experienced party, such as a builder or broker. This leads to assumptions about rights and obligations based on misunderstood law. Decisions are often driven by self-interest or misplaced trust rather than legal logic. My role frequently involves unravelling these dynamics and addressing legally flawed positions that can compromise a case. I once handled a case where an owner’s team made so many concessions that they didn’t receive the yacht they wanted, with no recourse against the builder.
What kind of cases do you handle?
My work includes maritime conveyancing, such as the sale and purchase of superyachts, and negotiating new-build contracts to align the interests of builders, designers, and owners while ensuring the contract clearly defines the yacht to be delivered. I also handle disputes, often over whether a yacht meets specifications, is delivered on time, or performs as expected.
With so much at stake, how do you stay ahead in this fast-paced industry?
Staying ahead requires a network of key industry decision-makers and a broader perspective. I apply insights from shipping, aviation, and international politics to the superyacht world, stepping outside its echo chamber to anticipate trends and challenges.
What are the most common misconceptions about the superyacht world and its owners?
There aren’t misconceptions, just opinions that the industry may not like. Some believe highlighting the economic benefits of superyachts – like job creation – would improve public perception. This oversimplifies the issue and ignores that motor superyachts symbolise the isolation and entitlement of the ultra-wealthy. For instance, Jeff Bezos and Lauren Sanchez’s wedding yacht drew heavy criticism. Interestingly, sailing superyachts attract less negative attention.
What has been one of your most memorable or rewarding experiences in superyacht law?
Helping shape the contracts used to buy or build superyachts stands out. Many contracts today include clauses I first drafted years ago. My early advocacy for ethical practices is now industry standard, which is deeply rewarding.
What does a day in the life of John Leonida look like when managing legal matters for superyacht owners?
My day begins with coffee and reading The Guardian, followed by a workout and meditation. I review legal and academic materials, ensure client solutions are on track, liaise with colleagues at Wordley and address any unexpected issues.
Looking to the future, what are the key legal challenges for UHNWIs?
I anticipate stricter measures against tax avoidance, such as the OECD’s Common Reporting Standard, increasing transparency and complicating asset protection and privacy structures for superyacht owners.
