The dispute centered on design services provided for "Project Somnio," an ambitious venture aiming to create the world's largest superyacht.
Project Somnio is being presented as an unprecedented undertaking to construct a 222-meter "superyacht" featuring 39 private residences. With a budget of approximately €500 million, the vessel is reported to be being built by Norwegian shipyard VARD, a subsidiary of Fincantieri. The project is led by co-founders Carl Le Souef and Captain Erik Bredhe, the former master of "The World," currently the only residential vessel in operation.
The Legal Dispute
Winch Design Ltd was contracted to provide design services for Project Somnio. The contention arose over unpaid invoices amounting to £733,750. Winch Design asserted that Mr. Le Souef had entered into the contract in his personal capacity, making him liable for the debts. Conversely, Mr. Le Souef argued that the contract was with Somnio Superyachts Pty Limited, a special purpose vehicle (SPV) established for the project's development.
Court's Findings
The UK High Court examined the contract, which identified "Carl Le Souef" as the client, with Captain Bredhe signing on his behalf. The court concluded that any objective bystander would determine that Mr. Le Souef was the intended contracting party. The court also dismissed the defense's argument for contract rectification, citing a lack of evidence indicating a shared intention that Somnio Superyachts Pty Limited was to be the contractual counterparty.
Implications
This ruling underscores the critical importance of clearly defining contracting parties in agreements, especially in high-stakes industries like superyacht design and construction. It also highlights the necessity for individuals to explicitly state the capacity in which they are signing contracts to avoid personal liability.
About Winch Design Ltd
Winch Design is a multi-award-winning British design firm specializing in superyachts, aviation, and architecture. The company boasts a distinguished portfolio, having collaborated on some of the world's most luxurious and innovative superyacht projects. Notably, Winch Design was involved in the design of these recent award winning yachts such as Sparta, Synthesis, Excellence, and Starburst IV.
About Project Somnio
Somnio, derived from the Latin for "to dream," was marketed to be the world's largest superyacht by length and volume. Scheduled for launch in mid-2024, the vessel will feature 39 private residences and six-star facilities, offering owners and their guests an unparalleled lifestyle at sea.
Despite its claim to be the future "world’s largest superyacht" - a title currently held by Dilbar, built by Lürssen -Project Somnio does not meet the definition of a true yacht. Instead, it more closely resembles a luxury residential cruise ship, featuring a fixed itinerary, a shared ownership model, and a commercial operational structure. Unlike a traditional private yacht, which grants owners unrestricted cruising freedom, Somnio’s residents will follow a predetermined route, akin to high-end cruise travel. Furthermore, its classification under passenger ship regulations and the absence of a single private owner further separate it from conventional superyachts, rendering it ineligible for inclusion in rankings such as the YachtBuyer YB100 League Table which measures the world's biggest yachts by Gross Tonnage rather than length - an often misleading metric.
The court's decision serves as a pivotal reminder of the legal complexities inherent in large-scale maritime projects and the paramount importance of meticulous contractual clarity.
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