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Sea Rocket files lawsuit over Ocean City’s houseboat rental ban

The future of a short-term houseboat rental hangs in the balance as a lawsuit works its way through the court system.

Earlier this summer, Sea Rocket OC Houseboats LLC filed a lawsuit challenging the validity of ordinances aimed at banning the operation of houseboat rentals within Ocean City’s municipal limits. As the case proceeds in Worcester County Circuit Court, the company has been ordered to move its houseboat from a Dorchester Street marina until the matter is resolved.

In April, the Ocean City Council directed staff to develop recommendations for banning houseboat rentals after discovering listings for a short-term rental operation at the Dorchester Street marina. While the town views houseboats as floating structures – which are prohibited by town code – representatives for the operator, Sea Rocket OC Houseboats LLC, argue they are vessels consistent with marina use.

Despite objections from Sea Rocket’s manager, Will Wangel, and threats of litigation from the company’s attorney, Demetrios Kaouris, the council in June adopted an ordinance prohibiting the commercial use of houseboats within corporate limits, as well as a companion ordinance assigning fines for any violations. Days later, Sea Rocket Houseboats LLC filed suit in Worcester County Circuit Court seeking declaratory judgment and injunctive relief.

“There is a clear dispute as to the actions taken by the Town through the enactment of the Ordinances,” the initial complaint reads. “It is Sea Rocket’s position that the Ordinances are invalid and not an appropriate exercise of police power. The Town disagrees with that position, and contends the Ordinances are valid and fully enforceable against the Sea Rocket. An actual controversy therefore exists between the contending Parties, that the Sea Rocket does not believe the Town’s actions are lawful.”

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