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Old March 12th, 2015, 02:19 PM
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Default Colin Veitch sues Branson and Virgin

For those of you who have read about Colin Veitch suing branson for $300-million - what do you think?

I have met Veitch and I found him to be a persuasive and compelling personality. Now, people who shall remain anonymous have told me that he was not fun to work under when he was CEO of NCL. But he is a visionary guy - even if some of his visions proved to be a little off-base (the three ship NCL America in Hawaii, and the staterooms on Norwegian Epic).

But - I have to honestly say I am not surprised this deal with Virgin fell apart, because of the expectations Veitch had for keeping 90% of the profits. What company would let any partner keep 90% of the profits? Now, I realize Veitch "conceptualized" the shjips and secured the financing, but he probably could not have done that without the Virgin name behind him, which suggests that Virgin had a lot more to risk than just a tarnished name if the project failed.

However - on the flip side, it does appear that Virgin did "string him along" for quite awhile - getting all of his knowledge and ideas, before they started changing the terms of the deal on him.

Do I think this lawsuit has merit or that it will even slow down the Virgin plans? Not really. I didn't read anything about them having a contract written to define the original deal.

I am afraid Veitch may get something, or possibly nothing at all. Does he deserve something? yes, for the time he put in educating Virgin on the cruise industry and giving them a vision for a successful entry. But being taken advantage in that way is actually something any entrepreneur faces when working with a company - that's why we have contracts.
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Old March 12th, 2015, 03:14 PM
BernieG BernieG is offline
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I have to assume he was paid for the work he did at the onset. If he expected anything further, he should have had a pretty firm employment contract in place. If he does, then yeah, he should sue...if he just assumed he'd be part of the deal, then good luck.
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Old March 12th, 2015, 03:34 PM
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If he had a contract that would be ALL the lawsuit was about. It is not mentioned. So, it does appear that Virgin did string him along, at least some.

They should have at least given him a nice parting gift. Now, the article says they did offer him a "job" which is really as much as almost any executive could expect. What Veitch is upset about is that they "alledgedly" stole his ideas for entering the market with premium only cruise ships.

But is that really a unique idea 0 or wouldn't ANY new and big startup do the same thing?

If Disney was entering the market this year instead of 1998, does anyone think they would have started with the smaller ships - or would they have gone directly to the Dream and Wonder? Answer #2 is correct.

Sorry Colin, I understand your ire, but this is one of those things where a US court is not likely to stand up for you.

By the way - it is interesting the both Virgin (Branson) and Veitch are British - so why did he sue in Miami?
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Old March 12th, 2015, 03:38 PM
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Quote:
Originally Posted by BernieG View Post
I have to assume he was paid for the work he did at the onset. If he expected anything further, he should have had a pretty firm employment contract in place. If he does, then yeah, he should sue...if he just assumed he'd be part of the deal, then good luck.
Actually, that is not how I read it. All I read said he was working based on his perceived agreement with Virgin. He was out, independently, getting shipyards and financing lined up. It was his vision for a cruise line. According to the lawsuit the only Virgin agreed to provide was the brand name.

But - why would a company like Virgin NOT want to be more deeply involved then in just giving 90% of the profits away. I am not sure if Colin understood who he was dealing with - especially if you have read Branson's book (as I have). he is not a "hands off" entrepreneur. Just the opposite.
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Old March 12th, 2015, 03:56 PM
BernieG BernieG is offline
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Working on a perceived agreement is never a good thing

There's a good piece in the times, which sorry, I read and not your piece first. This has Virgin's response

http://www.nytimes.com/2015/03/12/bu...lans.html?_r=0
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Old March 12th, 2015, 04:47 PM
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I had read that, too. But I also forgot about the three year stipulation. No matter what, it's been three years.

I think Colin is SOL. This will probably be dismissed in short order. But I am glad because I want to see Virgin come into the cruise market.

"Virgin Cruises" is kind of a strange name. Might appeal to the "jihadist" market, though (That is JUST a joke).
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Old March 12th, 2015, 05:29 PM
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I can see it now...Virgin of the Seas and Extra Virgin of the Seas

I think Colin is SOL too. Will be interesting to see what happens.
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Old March 12th, 2015, 05:53 PM
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Funny; Extra Virgin of the Seas
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Old March 12th, 2015, 06:45 PM
Travelbuggs Travelbuggs is offline
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Will follow this story with interest. It kind of reminds me of the various lawsuits surrounding getting Facebook off the ground. And didn't all those folks eventually receive quite large settlements? It seems like they used Veitch for his cruise expertise and to do all the hard work up front in getting everything in place, and then cut him out. I will be surprised if he does not get a large settlement out of this.

But it seems to me I recall meeting Mr Branson in an elevator once and telling him he really should get into the cruise business! Maybe I should see an attorney, ASAP.
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Old January 28th, 2016, 02:48 PM
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just read this was settled out of court. Disappointing, I really wanted to know what he'd get.
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Old February 7th, 2016, 09:00 PM
Cruise Ship Law Cruise Ship Law is offline
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Default It Looks Like the Parties Settled Amicably

Great posts, gentlemen. As Bernie points out, a settlement has been reached. According to the Miami Herald, the parties settled for an undisclosed amount. The original lawsuit demanded $300 million. The article also mentions Virgin's plans for three 2,800-passenger ships scheduled to sail in 2020, 2021 and 2022.

Tim Akpinar


I've provided a link to the article below:

Virgin settles $300 million lawsuit with former Norwegian CEO over alleged stolen cruise ship idea | Miami Herald
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Old February 8th, 2016, 01:01 AM
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Thank you for the link
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