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GoLocalProv | News | A $4.5 Million Luxury Yacht Was at Center of RI Wreck and Now a Federal Lawsuit

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GoLocalProv | News | A $4.5 Million Luxury Yacht Was at Center of RI Wreck and Now a Federal Lawsuit


Friday, August 18, 2023

 

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A screenshot of the Sea Axis website — the mega yacht is now at the center of federal lawsuit.

 

A $4.5 million luxury yacht is at the center of a federal lawsuit, following an incident that occurred during a storm off of Block Island in July. 

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The yacht reportedly lost control in a “violent wind and weather squall,” dragged anchor, and wreaked havoc, impacting other vessels. 

 

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Micky Arison (front row, far right) is the owner of the Miami Heat, and once owned the yacht.
PHOTO: White House public domain

It’s a yacht owned by the super-rich.  According to its website, it was once owned by Ted and Micky Arison. Ted was the founder of Carnival Cruise Lines and his son Micky is the chair of the cruise line and the owner of the Miami Heat.

The yacht in question — Sea Axis — boasts accommodations for up to 12 guests with a crew of 7, features a “circular seating area with a fire pit and outdoors movie theater” and touts having such amenities as SeaBobs, SeaDoos, and more. It also claims it has the “best AV equipment made.”

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Now, it is the defendant in a federal lawsuit.

North Kingstown-based company HRM — which is in the business of providing “professional marine salvage” — provided services to Sea Axis during the adverse weather event off of Block Island on July 29.

HRM has sued the owners of the 124-foot Sea Axis in federal court in Rhode Island for the costs and damages allegedly incurred during its operation. 

The Rhode Island company says Sea Axis “failed to appreciate the approaching weather including its high winds and did not have its engines, systems, and crew ready to respond.” 

The result, according to the lawsuit, was that the Sea Axis “dragged anchor and violently impacted other vessels” off Block Island — and HRM intervened to prevent further damage.”

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Posted to social media are images of the alleged damage caused by Sea Axis.

According to the lawsuit, Sea Axis is “believed to be approximately $4,500,000.00 based on an insured value.”

HRM is claiming it is “entitled to a liberal salvage award and claims an award in the of $247,500.00 plus costs and interest.”

 

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Federal Courthouse in Providence. PHOTO: GoLocal’s Will Morgan

Lawsuit Outlines Alleged Incident, Damage and Salvage

In its lawsuit, HRM outlines what it says was its role in the salvage operation. 

“HRM continually monitors the weather and sea conditions to be prepared and properly positioned to respond to vessels in need of assistance. HRM learned of the impending weather and its salvage tug got underway and took up watch in New Harbor, Town of New Shoreham,” according to the lawsuit. “Within minutes, HRM observed the Yacht dragging anchor and not under command such that it was in a position of peril. HRM immediately took measures to protect the Yacht by quickly arriving at and maneuvering into the Yacht in such a way as to push the Yacht clear of the mooring field and other vessels.”

“HRM’s salvage tug incurred significant damage in undertaking this effort, but it was successful in keeping the Yacht from impacting additional vessels, from dragging into deep into the mooring field and from grounding ashore,” the lawsuit continues. “HRM’s efforts preserved a lot of vessel value and likely resulted in the Yacht being saved from what would have been very expensive damage to its hull, running gear, stabilizers (as equipped), and topsides.”

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HRM is suing for a claim for the salvage award of $247,500 as well as prejudgment and post-judgment interest. 

The attorney for HRM said he had no additional content beyond the lawsuit.

The company managing Sea Axis did not respond to request for comment.

 

Incident – Harbormaster’s Report

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This week, GoLocal obtained a copy of the July 29 incident report from the Town of New Shoreham.

The report mirrors a number of key claims in the federal lawsuit.

According to Harbormaster Kathleen McConville:

At approximately 0520 this morning, a call went out on VHF CH 12 that there was a large MV dragging down on MV Champion which is located in the east mooring field on number P471. 

While getting underway, Safe Sea notified me that the MV had picked up its anchor and was now in the main channel. The Safe Sea boat had gotten in between the MV Sea Axis and MV Champion, puncturing the bow tube of the rib.

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Upon inspection, MV moored to P473 sustained substantial damage to the bow from the deck down to the waterline. My crew and I tied two safety lines from the midship cleats to the mooring ball shackle as the bow cleat was completely damaged and knocked off. There was no one onboard. 

We went over and spoke to Mr. Walter Filkins, owner of MV Champion, who is moored on P471. He sustained damage to his starboard side as well as minor damage to his MV scout that was tied off the stern of MV Champion. I then spoke to the captain of MV Sea Axis, Michael McDermitt who provided me with valid insurance information and who to contact regarding the incident. “

 

 

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Stop & Shop closures; Ruggerio’s absence; RI’s quirky gems: Top stories this week

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Stop & Shop closures; Ruggerio’s absence; RI’s quirky gems: Top stories this week


Here are some of The Providence Journal’s most-read stories for the week of May 19, supported by your subscriptions.

Here are the week’s top reads on providencejournal.com:

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Is your Stop & Shop closing?

Its corporate parent, the Dutch-based Ahold Delhaize, said at an investor meeting last week that it will close underperforming stores, without saying how many or which ones.

“Stop & Stop has done a thorough evaluation and is focused on assuring a stable and thriving future,” the Dutch company’s chief executive for the United States, JJ Fleeman, said during an online presentation dated May 23. That includes “optimizing the portfolio to focus on core markets where it can win.”

Stop & Shop has 395 stores in Massachusetts, Connecticut, Rhode Island and parts of New York and New Jersey. That includes 26 locations in Rhode Island.

Business: Stop & Shop plans to close underperforming stores. What we know so far.

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Out of sight for more than a month, 75-year-old Senate President Dominick Ruggerio had hoped to return to his powerful, front-and-center perch in the Senate chamber this week.

But that is not happening.

Ruggerio, the long-serving political warhorse who acknowledged last month that he is battling cancer, is no longer giving an estimated time for his return to work at the State House, though he says he hopes to return soon.

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In a statement, Ruggerio attributed his absence to “health complications” from a virus he contracted in April. He says that even at a distance, he is actively engaged by phone in high-level, end-of-session negotiations on legislation, including the big budget bill still in progress.

Ruggerio has not presided over the Senate since April 23, and has not attended a session since April 25.

Politics: Where is Dominick Ruggerio? RI Senate president has been out over a month. What we know.

Narragansett’s summer tourist season began with a cloud hanging over property owners like Joseph Volpe, who rent a room, apartment or house on websites like Airbnb and VRBO.

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One of the most aggressive local ordinances in Rhode Island to curtail the short-term rental of homes is set to go into effect there in September, so this may be the last summer Volpe offers his four-bedroom house online for use by visitors.

Most observers, including state Housing Secretary Stefan Pryor, say the sale and conversion of homes from year-round use to vacation rental is contributing to the shortage of apartments and houses on the market.

Will cracking down on vacation rentals actually make the problem better or worse? That’s unclear.

State House reporter Patrick Anderson explains the state law that legalized short-term rentals, the local ordinances enacted to impose restrictions or ban them outright, and the House study commission that is delving into the matter.

Housing: Vacation is over: New regs tamp down Narragansett Airbnbs as RI studies short-term rentals

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Journal reporter Amy Russo is leaving Rhode Island, but she says she’ll take many memories with her, including experiences she had in her adopted state while writing her New to RI column. She spent time tending the braziers at WaterFire, did some quahog digging and clam cake eating, and, at one point, plunged into a practically frozen Greenwich Bay in January.

In her farewell, she lists the places she’ll miss the most. If you’re a seasoned Rhode Islander, you’ll know them all.

Entertainment: RI has plenty of quirky and fun hidden gems. Here are a few to visit.

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It is not often that Journal food editor Gail Ciampa is so taken by a meal that she forgets to take a photo of what she’s eating. But she did just that on a recent visit to Providence’s Capital Grille.

While Gail and her husband were sipping cocktails and listening to the list of specials, the mention of a bone-in filet sealed her decision. What makes this special cut so intensely flavorful that it’s worth every penny of the $80 price? Gail can explain.

Dining: There’s a secret menu item at this Providence steakhouse. Why you’ve got to try it soon

To read the full stories, go to providencejournal.com. Find out how to subscribe here.



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Education, housing and health care come out on top in lawmakers’ revised fiscal 2025 budget • Rhode Island Current

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Education, housing and health care come out on top in lawmakers’ revised fiscal 2025 budget • Rhode Island Current


Good news for transit riders, Medicaid providers and public school students, all of whom stand to benefit from the revised fiscal 2025 budget given first passage by a panel of House lawmakers Friday night.

The $13.9 billion spending plan unveiled late Friday falls just shy of the $14 billion high water mark that characterized fiscal 2024’s approved spending plan, but is $271 million more than what Gov. Dan McKee proposed in January.

The updated spending plan includes enough money to stave off service cuts at the financially struggling Rhode Island Public Transit Authority while offering Medicaid providers long-awaited reimbursement rate hikes in a single year, rather than the three-year incremental uptick McKee proposed. Meanwhile, a nearly $33.8 million boost in state aid to K to 12 schools, above what McKee called for, will offset a steep drop in federal funding, along with more dollars for multilingual learners.

“Through this budget, we are emphasizing education at every level and supporting children,” House Speaker K. Joseph Shekarchi said in a statement Friday afternoon.

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Shekarchi stressed the changes as the result of a “truly collaborative process” including lawmakers in both chambers as well as Gov. Dan McKee. 

However, lawmakers have axed several components of Gov. Dan McKee’s original, $13.7 billion spending proposal, including $60 million in bonds to help pay for a new, dedicated state archives and a proposed rewrite of state income taxes for banks intended to stop Citizens Bank from shifting its investments, and employee base, outside the state.

“It has been a difficult budget because we feel the pain of Rhode Islanders,” Shekarchi said, speaking to reporters Friday night. “We tried to do the most good for the people that need it most.”

The House Committee on Finance’s 13-1 vote Friday sends the updated spending proposal to the full House of Representatives for consideration on June 7, with Rep. George Nardone, a Coventry Republican, casting the sole vote in opposition. Lawmakers must approve a final spending plan before the new fiscal year begins July 1.

At far left, Larry Berman, communications director for the Office of the House Speaker, points to a reporter during the proposed fiscal 2025 budget briefing on Friday, May 31, 2024, at the State House. Left to right are House Fiscal Advisor Sharon Reynolds, House Majority Leader Chris Blazejewski, House Speaker K. Joseph Shekarchi and House Finance Chairman Marvin Abney. (Alexander Castro/Rhode Island Current)

Top priorities: Housing and Washington Bridge

Acknowledging the skyrocketing cost to demolish and replace the I-195 Washington Bridge, the spending plan includes $80 million to cover the state’s share of the estimated $400 million cost. This includes repurposing unspent pandemic aid, as McKee suggested, but replaces the governor’s proposal to borrow against future gas tax revenue by instead allotting $40 million in long-term capital spending for the cost.

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Combating the housing crisis, a top priority for Shekarchi, takes an even bigger role in the revised spending plan, with a historic $120 million bond to stimulate housing production, including authorization for a state public housing developer. This is $20 million more than the borrowing amount requested by Housing Secretary Stefan Pryor and included in McKee’s budget.

“We need to increase production, production, more production at every single level,” Shekarchi said.

Medicaid reimbursements, new health care initiatives

The updated budget also adds $40 million in state funding to the proposed increase in fee-for-service rates for Medicaid providers who work in behavioral health, community care and with infants and toddlers with developmental disabilities. The increase allows the state to meet the $100.3 million cost to offer rate hikes in a single year, as recommended by the Office of the Health Insurance Commissioner. 

Meanwhile, the understaffed Department of Children, Youth and Families will see a $21 million funding boost to cover workforce expansion, foster care and congregate services, among others.

A new $1 million restricted receipts account, to be managed by the treasurer, will help residents pay off medical debt, one of the proposals in a 25-bill health package put forth by the Rhode Island Senate. A separate bill funding a scholarship program for doctoral and nursing students who stay and work in the state was also added to the updated spending plan.

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Help for RIPTA’s fiscal cliff, green economy bond

Amid outcries over service cuts to the embattled transit system, lawmakers allotted an extra $5 million to RIPTA – still $3 million shy of closing the agency’s funding deficit but enough to stave off any reduction in bus route locations or schedules, Shekarchi said.

Also heeding advocates’ calls to preserve and protect forest and farmland, a $53 million green economy bond now includes $13 million for the cause, while money to help rebuild the Newport Cliff Walk was trimmed from $8 million to $3 million to account for a newly awarded federal grant. 

House Fiscal Advisor Sharon Reynolds Ferland is shown. (Alexander Castro/Rhode Island Current)

Retirees 

Retired state workers and teachers clamoring to reinstate the compounded cost-of-living adjustments that ended under a series of pension reforms enacted in 2012 still won’t get exactly what they asked for. Rather than reinstatement and retroactively applying COLAs — an estimated $169 million cost according to a legislative review that ended earlier this year —the revised budget includes new COLAs effective July 1 for retirees who stopped working before the pension reforms took effect.

“These people are the oldest, the people who have been retired the longest,” Shekarchi said. “They didn’t have the opportunity work longe into the system.”’

For other retirees, the budget preserves McKee’s proposal to raise the minimum income that retired workers from any job can earn without being taxed – from $20,000 to $50,000 (or double for joint filers). 

Higher ed bonds

Two separate bond proposals supporting a Biomedical Sciences Building for the University of Rhode Island, and a separate Institute for Cybersecurity and Emerging Technologies at Rhode Island College were increased above McKee’s recommendation to reflect full funding requested by each school: $87.5 million and $73 million, respectively.

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A fifth borrowing proposal, borrowing $10 million for three specific arts projects as well as grant money administered by the state arts council, was also added to the lawmakers’ version of the budget.

New state archives is out

No longer in the borrowing list: a $60 million bond that would have covered a portion of the $100 million price tag for a new state archives, a top priority for Secretary of State Gregg Amore.

Shekarchi cited lack of details on where the archive would go or a funding partner to cover the rest of the cost as reason why the revised budget does not include any borrowing for the project.

No tax rewrite for Citizens

The need for more information and time is also why Shekarchi said a proposed tax rewrite intended to benefit Citizens Bank was nixed from the updated spending plan.

“I don’t want to be the speaker who loses Citizens Bank,” Shekarchi said in a statement Friday. “I will roll up my sleeves and get to work with them over the summer so we can prefile legislation that can be vetted early in the year, but right now, we don’t have enough information to know whether this plan is the right move for our state.”

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Rory Sheehan, a spokesperson for the bank, issued an emailed response Friday.

“We are disappointed that Budget Amendment 19 was not included in the State Budget,” Sheehan said. “This decision will make it difficult for the state to compete on a level playing field with Massachusetts and other states and is not in the best interest of Rhode Islanders.  We urge the Rhode Island General Assembly to address the issue before the end of the session.  We are committed to working diligently to achieve a positive outcome.”

No sales tax cut

McKee’s budget proposal offered a wishlist of extra spending items if state revenue beat expectations, including trimming the state sales tax. Senate President Dominick Ruggerio has also pushed for reducing the state sales tax to remain competitive with neighboring states.

Shekarchi’s response to a prospective sales tax cut?

“Absolutely not,” he said Friday.

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The revised budget maintains the existing 7% sales tax while striking McKee’s proposal to cut the corporate minimum tax. However, McKee’s proposed 25-cent tax increase on cigarette packs survived, as did a slightly different version of the governor’s recommendation to tax vaping products.

Unlike years past, McKee and Ruggerio did not attend a press briefing on the budget held Friday night at the State House. Each indicated general support for the revised spending plan in prepared statements.

“I am pleased that the budget will invest in many Senate priorities, particularly in the areas of health care, child care, education and providing some needed relief to retirees,” Ruggerio, a North Providence Democrat, said.

“The Speaker and I are aligned in our priorities of improving the education, housing, and health of all Rhode Islanders, and this budget makes key investments in all those areas,” McKee said. “Like the Speaker, I too appreciate the collaborative spirit in which this budget was shaped.”

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Rhode Island Lottery hosts 'Spin and Win' event to commemorate 50th anniversary | ABC6

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Rhode Island Lottery hosts 'Spin and Win' event to commemorate 50th anniversary | ABC6


James Burke won the Rhode Island Lottery’s “Spin and Win” anniversary game. (Rhode Island Lottery)

CRANSTON, R.I. (WLNE) — The Rhode Island Lottery hosted a “Spin and Win” event on May 30 to commemorate the 50th anniversary of its inaugural drawing on May 30, 1974.

James Burke of North Kingstown won two Boston baseball tickets at the event.

Burke recently won a $177,030 Wild Money jackpot as part of the anniversary celebrations.





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