A major dispute surrounding a £400 million superyacht project has left an entrepreneur facing a court bill of over £1 million.
The entrepreneur, Carl Le Souef, is behind the ambitious plan to build the world’s largest superyacht, named M/Y Somnio, which is described as a luxurious floating hotel.
However, the project has hit a significant setback as the British design firm, Winch Design, sues for unpaid bills related to their work on the yacht.
The Ambitious Yacht Project
The Somnio project, which has been in the works since 2007, is set to be one of the most extravagant yachts ever built.
At 728 feet long, it’s been called a “floating millionaire’s row” and promises amenities like an onboard beach and a 10,000-bottle wine cellar.
The yacht’s designer, Carl Le Souef, envisions it as a luxury residence that blends high-end living with travel.
Le Souef, an Australian investor, teamed up with Erik Bredhe in 2007 to create the idea for the Somnio.
The project includes 39 bespoke apartments, with prices set at £8.1 million each.
The yacht will feature multiple floors, restaurants, swimming pools, water sports, and top-tier medical services, offering a lifestyle akin to a six-star hotel.
The yacht is being constructed by the Norwegian shipyard VARD, a subsidiary of the Italian company Fincantieri.
The Legal Battle Begins
Winch Design, a British superyacht design company, became involved in the project in 2019, working on both the exterior and interior of the vessel. The ship was initially scheduled for a 2024 launch, but that deadline has come and gone without the yacht being completed.
According to Winch, the firm had agreed to a £5.25 million contract with Le Souef to design the yacht, with payments due in phases.
However, after receiving an initial £200,000 payment, the company claims that Le Souef failed to pay three subsequent invoices amounting to £733,750, which caused Winch to stop their work.
Nearly four years later, with no payment received, Winch filed a lawsuit to recover the owed amount.
Court Ruling and Consequences
The case went to London’s High Court, where Judge Lesley Anderson KC ruled in favor of Winch Design, ordering Le Souef to pay the £733,750 owed for design work.
Additionally, he was required to cover the legal costs of the case, which amounted to over £300,000.
This brings his total court bill to over £1 million.
Despite Le Souef’s arguments that he was not personally liable for the debt and that there had been an informal agreement not to pursue the unpaid bills, the judge sided with Winch Design.
The contract clearly stipulated that Le Souef was personally responsible for the payments, and the judge dismissed his claim about the supposed arrangement at a dinner meeting.
The Future of Somnio
As the legal issues continue, the Somnio project remains classified as “under construction.”
The yacht, designed to be a combination of luxury living and high-end travel, will feature a 10,000-bottle wine cellar, a top deck lounge, and even a movie theater.
However, the legal battles surrounding the project have cast a shadow over its ambitious goals.
The yacht remains one of the most anticipated projects in the luxury world, but the significant financial and legal hurdles raise questions about the timeline and future of the venture.
With Le Souef now facing a hefty bill, it remains to be seen how the Somnio project will proceed in the coming months.
The Bigger Picture: XL Yachts and Legal Accountability
This case is not just about a single luxury yacht but reflects broader issues in the ultra-luxury yacht industry.
It highlights the risks that come with such massive, high-profile projects, where financial disputes and unfulfilled promises can lead to major legal battles.
As the industry continues to thrive, the Somnio case may serve as a cautionary tale for other entrepreneurs and companies in the luxury sector.