Billionaire Trevor Lee’s charter company claims $12.85 million damage to superyacht

Billionaire Trevor Lee’s charter company wants a US film company to pay more than $12 million, claiming damage to a superyacht, named after his fashion designer wife.

Billionaire Trevor Lee is trying to recover $12.85 million from an American film company for alleged damage to his charter company’s superyacht, named after his fashion designer wife, Keri Craig-Lee.

The $25 million Keri Lee III, which charters for $310,000 to $365,000 a week in Australia and the South Pacific, has a jacuzzi, beauty salon, movie theatre, luxury furnishings and watersport and gym equipment.

It has accommodation for 12 guests in six cabins and for 12 crew.

Inside the superyacht Keri Lee III.

Mr Lee’s company, Keri Lee Charters claims that in the course of a charter to Mountain View Productions, the 55-metre luxury motor yacht was damaged.

“Keri Lee Charters claims monetary sums totalling approximately $12.85 million,’’ a Federal Court decision said.

It did not specify details of the alleged damage.

Keri Lee III was built by Trinity Yachts in the United States in 2001, refitted in 2016 and had a refurbishment in late 2020.

Mountain View Productions LLC, a motion picture and video company based in North Hollywood, California, applied to the Federal Court for the issue of subpoenas to two Queensland companies to produce documents.

The court was told in May, last year, Keri Lee Charters and MVP made an agreement that any controversy or claim would be determined and resolved by confidential arbitration.

It would be heard by a single arbitrator who was a senior counsel experienced in maritime law or the president of the Queensland Bar Association.

Trevor Lee and Keri Craig-Lee

On February 3, an arbitrator granted MVP permission to apply to the Federal Court for subpoenas to be issued to Blackpond Marine Consultants and Australian Marine Consultants for production of documents.

Justice Angus Stewart said part of the alleged damage was said to be constituted by the difference between the condition of the vessel, as recorded in an “on hire survey report’’ prepared by Joe Akacich of Blackpond and surveyors from AMC, and an “off hire survey report’’ prepared by Mr Akacich.

“Keri Lee Charters also alleges further damage that was not described in Mr Akacich’s off hire survey reporter,’’ Justice Stewart.

The Blackpond subpoena seeks production of documents exchanged between the company and Keri Lee Charters, Trevor Lee and Mrs Keri Lee.

It also seeks documents exchanged between Blackpond and some lawyers, marine consultants and others and any crew member of the vessel and all documents concerning repair, charter, hire or use of the vessel.

The court heard the yacht had its hull painted in late 2020 and early 2021.

MVP wants AMC to provide any documents or photographs exchanged between the company and others concerning any survey or inspection of the boat in or about May, last year.

The Keri Lee III.

Justice Stewart ordered the subpoenas be issued, with time limits for the Blackpond documents.

The arbitration is listed for a three-week hearing from April 11 in Brisbane.

In 2016, a Federal Court judge ruled that beef baron Trevor Lee’s charter company Keri Lee Charters could claim Keri Lee III as a legitimate tax deduction.

The ruling reduced the taxable income of Mr Lee’s charter business by at least $20 million.

The Australian Taxation Office had claimed Mr Lee prioritised his own family holidays, including Mediterranean cruises

But Justice John Logan said the yacht charter operation was a legitimate business with the intention of making a profit, although it was hired to Mr Lee and his family.

Justice Logan said Mr Lee had become interested in luxury cruising soon after marrying fashion designer Keri Craig Lee and meeting Queensland resort developer Keith Williams.

Before buying Keri Craig III, Mr Lee had two other superyachts, also named after his wife.