Originally Posted by RKsailsolo
Can anyone tell us why such a site exists. Suggests the biggest cat builder
in the world has serious problems that impact new and used boats.
Sent from my iPad
using Cruisers Sailing Forum
No, it only suggests one person had a complaint. Obviously, he's not the only person to ever have a problem with a Lagoon
. But you'd expect some issues over the years based on their volume. Then you have to look at what the problems have been, have they been resolved, and how you feel the builder has handled it.
In the complaint relating to that site, it's a not uncommon type issue. Boat is in accident
, then insurer or owner claims some part of damage is related to build, not the accident
. In this case, it was the owner. Basically he had a deductible on his insurance
policy that he wanted Lagoon
to reimburse. Initially he also sought loss of value I believe. Clearly his actions were the cause of the accident. The insurer apparently paid all but the deductible. He felt Lagoon was responsible for the extent of the damage because the compartment wasn't watertight. Lagoon says they aren't required to build watertight bulkheads. Another point is that even had it been his damage would have exceeded his deductible, so he still would have been out the same amount of money
Note a couple of things. The insurer made no attempt to place blame on the builder.
Second, the owner tried to sell the boat before ever taking it. The boat lost
value prior to him taking it and he paid 587 euros and was unable to sell for 500 euros, which the owner blames on the economy. Then he insured it for 587 with an 88 euro excess (I think equivalent to a US deductible). He wanted Lagoon to cover the loss of value of the boat although it lost
value prior to the accident. Note also he was upset that personal effects weren't covered, but that was his policy, his coverage. He then found cracks in the bulkheads and Simpson marine
told him that Lagoon considered those to be a result of the accident.
He tried to sue in French courts before he found out his agreement with Simpson Marina (apparently he didn't read the back of the contract) stated that he must go to arbitration. He filed arbitration beyond the one year time frame required by the contract
. He lost and was ordered to pay for the costs of arbitration plus Simpson's legal fees
. He then failed to pay as ordered and subsequently Simpson has obtained an injunction to keep it from leaving Singapore
and with intent of auctioning it to recover their legal fees
. I don't know if that auction
has taken place.
Here are the known facts:
Owner didn't want the boat, even prior to accident, and tried to sell it. Obviously still doesn't want it.
Accident was owner's fault.
Insurer paid as per policy.
Owner claimed damage was higher as result of build problems with bulkhead. Simpson marine
Owner failed apparently to read contract
and know his rights, sued in French court, withdrew suit, lost in arbitration.
What isn't known from the information available:
Does Lagoon have a bulkhead problem? You'd have to read other's experiences.
Did Lagoon handle this correctly? All I see is him dealing with Simpson.
Did Simpson handle this correctly or just take advantage of his failure to know the contract he entered with them?
Lessons to be learned
Boats lose value the day they're purchased and may lose more rapidly depending on times.
has deductibles. Be sure you're comfortable with yours.
Read all contracts. Have your attorney do the same. Pay lawyer fees upfront to avoid problems rather than in litigation.
Know who you're dealing with. The builder and the seller.
Know your warranty, exactly what it covers, and what you must do to get coverage.
Get a survey
even on a new boat. If there's a bulkhead issue, that is the time. You're not going to be successful claiming builder's problem after an accident you cause. We have purchased new boats and have had them surveyed during build and before taking delivery
Boats are expensive. Owning them is expensive, especially new boats. Don't buy a $700,000 boat if you can't afford it losing $200,000 value after your first day of operation. Now if you're going to be using it, it's value doesn't really matter. But if you're thinking resell, it does. It may lose as much as 1/3 of it's market value the day you put it into use. He seems somehow shocked that Simpson paid 17% less than list for the boat and had significant profit on the sale
even after giving him a 6% discount.
I do feel for the purchaser. He has lost a lot of money
at best and I don't know what the final resolution has been. There's no way he's ever going to be made whole or feel he was. It's tragic and painful. However, ultimately, he is at fault for much of his loss. He didn't know the contract he entered, he didn't get the boat surveyed, he seemed naive over the fact it could lose so much value in a recession. He entered into an insurance policy that he couldn't afford the deductible. He didn't get the boat surveyed prior to taking delivery
. He didn't get good legal representation from the start, including reviewing of his purchase
agreement. He didn't get assistance from someone experienced in purchasing
such boats. A boat purchase
can be a very expensive lesson learned.
As to his website, perhaps he feels telling his story brings him some degree of satisfaction or that he can help others to avoid his mistakes