With high winds, the fire spread to two nearby boats which were quickly dragged out to sandbanks where their fire was extinguished.

The Paradiso drifted to another marina whilst on fire, setting three further yachts ablaze before all vessels were forced out in to open water and the fires eventually extinguished.  The marina also suffered unspecified damage.

At the time of writing, the exact details are still being investigated but regardless of the outcome, the losses will undoubtedly run into the millions – the Paradiso itself was purchased recently for AUD1m.

Yacht insurers are likely to settle the claims relatively quickly, however they will be keen to pursue some level of recovery and are likely to undertake exhaustive investigations to identify who is liable for the damages.

Marina owners/operators should carefully consider their liability where any works (and specifically hot works) are being conducted on boats moored within their marina, and whether they could have a contractual or tortious liability for any damage caused.

Independent contractors may not have significant liability cover (if any) and whilst the initial damage to the Paradiso may not attract a liability for the marine, the subsequent damage could do if the marina is found to have not taken appropriate precautions in light of the hot works.