ALBIN MARINE MANUFACTURE ALBIN MARINE MANUFACTURING CORP. FRAUD, THEY TRY TO DELIVER A DIFFERENT VESSEL AND NOT THE ONE I BOGHT PORTSMOUTH Rhode Island

September 18, 2007

VIA CERTIFIED MAIL, RETURN RECEIPT
Albin Manufacturing Inc.
Albin Manufacturing Corp.
143 River Road
226 West Shore Road,
Cos Cob, CT 06807
Portsmouth, RI 02871
NOTICE OF INTENT TO FILE SUIT UNDER THE CALIFORNIA CONSUMER
LEGAL REMEDIES ACT

Re:
Saavedra v. Albin Manufacturing Corp.

Dear
Albin made glowing representations of quality
and performance by Albin Manufacturing Inc. (Albin), such as those found at www.albinmarine.com, wherein Albin claims that There can be no compromises with . . . the Albin 40 North Sea Cutter, The Albin Cutter is the newest concept in performance and luxury.
For the Yachtsman who wants more than another cruiser, This is the one to consider. Take the
helm of the Albin 40 North Sea Cutter and you take command of the finest vessel on the market
today, and that Our diesel powered yachts are built without compromise and known throughout
the world as seaworthy vessels designed in the North Sea tradition to handle the roughest waters.
Our name is synonymous with hand-crafted, offshore yachts of quality.

Based on these representations and others of similar ilk, Mr. Saavedra entered into a contract with Albin for the purchase of a new blue 2007 40' Albin North Sea Cutter on July 17, 2006 in San Diego, California for a total of $355,037. On August 4, 2006, Mr. Saavedra was
given a Manufacturer's Statement of Origin executed by the president of Albin certifying that the
boat being provided to Mr. Saavedra was a new 2007 40' Albin North Sea Cutter, Hull No.
AUL 40 009 G 506. Mr. Saavedra paid for the boat in full and received title to the yacht in San
Diego, California prior to Albin completing the ordered upgrades. In addition, Mr. Saavedra paid
an additional $48,718.49 for the purchase and installation of various electronics upgrades.
Although Albin was to have delivered the boat to Mr. Saavedra within 60 days of the purchase,
Albin notified Mr. Saavedra that the yacht was ready for pick-up in July 2007, a year later.
Upon traveling to Key West, FL to take the yacht to Cancun, Mr. Saavedra discovered
that the yacht was severely damaged, clearly not a new yacht, was missing numerous Albin
upgrades previously paid for by him, had many corroded fixtures, cracks in the fiberglass, and as
one particularly egregious example, did not even have plumbing fixtures connected to pipes. The

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Albin Manufacturing, Inc.
Re: Saavedra v. Albin Manufacturing et al.
September 18, 2007
Page 2 of 4
yacht was clearly of extremely poor manufacture hardly a boat synonymous with hand-crafted,
offshore yachts of quality.
Mr. Saavedra has recently learned that this very boat, with Hull No. AUL 40 009 G 506,
was delivered to a dealer in Texas in 2005, who rejected it for having such poor quality
manufacturing, and had to file suit in Harris County, Texas against Albin for the return of the
money paid by the dealer for the boat. In early August 2006, Albin agreed to settle that lawsuit,
telling the dealer that it had another buyer for that boat and picked the boat up from the Texas
dealer in early September 2006 just after completing the sale to Mr. Saavedra but before
delivery. Thus, Albin knowingly and willfully defrauded Mr. Saavedra by intentionally selling
him a yacht already rejected as defective by one of its own dealers.
The yacht is not only of inferior quality and in poor condition, but several upgrades paid
for by Mr. Saavedra were not even installed and numerous fittings corroded and beyond repair.
In short, Albin knew the yacht was defective, and knowingly sold the defective yacht as new to
Mr. Saavedra. In yet a further effort to defraud Mr. Saavedra and hide the yachts checkered
history, Albin tampered with the Hull Number, changing the Hull No. to AUL 40 009 I 506,
even though all of the documentation provided to Mr. Saavedra clearly identified the Hull No. as
AUL 40 009 G 506.
The California Consumers Legal Remedies Act, Civil Code 1770 sets forth several
types of unfair and/or deceptive acts or practices that constitute a violation of the statute, and in
part provides as follows:
"The following . . . unfair or deceptive acts or practices undertaken by any person
in a transaction intended to result or which results in the sale or lease of goods or
services to any consumer are unlawful:
". . . .
"(e) Representing that goods or services have . . . characteristics, . . . uses, [or]
benefits, . . . which they do not have . . . .
". . . .
"(g) Representing that goods or services are of a particular standard, quality, or
grade, . . . if they are of another.
". . . .
"(i) Advertising goods or services with intent not to sell them as advertised.
". . . .
"(n) Representing that the subject of a transaction has been supplied in accordance
with a previous representation when it has not."
By the forgoing conduct, Albin has violated Civil Code 1770, its express and implied
warranties under California's Song-Beverly Consumer Warranty Act ("Song-Beverly Act") and
the federal Magnuson-Moss Warranty Federal Trade Commission Improvement Act, 15 U.S.C.
2310(d). The Consumer Legal Remedies Act not only provides for damages but a mandatory

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Albin Manufacturing, Inc.
Re: Saavedra v. Albin Manufacturing et al.
September 18, 2007
Page 3 of 4
award of reasonable attorneys fees to a prevailing plaintiff, as does the Magnuson-Moss Act.
The Song-Beverly Act also provides for double damages in addition to reasonable attorneys
fees.
As a result of Albins breach of contract, breach of express and implied warranties, fraud
and unfair business practices, Mr. Saavedra suffered and continues to suffer damages in an
amount to be determined at trial but in excess of $400,000 as follows:
Purchase
$355,037.00
Upgrades
$ 48,718.49
Interest Charges
?
Insurance
$ 7,085.00
Travel/lodging for pickup
$ 2,678.00
New survey
$ 1,000.00
Estimated Attorneys fees
$ 8,000.00
Total:
$ 422,518.49
The CLRA, 1782(a) provides a safe harbor of thirty days to give you an opportunity
to rectify this serious problem. Demand is hereby made that within thirty days, you replace the
yacht with an Albin 40 North Sea Cutter conforming to the contract and your representations of
quality, or in the alternative, pay Mr. Saavedra $422,518.49 and he will transfer ownership of the
defective yacht back to you. If you do not agree to correct this serious problem, Mr. Saavedra
will commence a legal action against you in federal court for the full amount of his damages,
including without limitation, consequential damages, punitive damages, and his reasonable
attorneys fees.
Please contact me at your earliest convenience to settle this matter and avoid
responsibility for yet more of Mr. Saavedras attorneys fees. R. D. SHELLEY
MARINE SURVEYOR INC.

604 28th AVENUE NORTH, SAINT PETERSBURG, FL 33704
(727) 480-3172
________________________________________________________________ File #09264307APP Date: September 29, 2007
b
REPORT OF APPRAISAL INSPECTION OF Kitan


VESSEL OWNED BY: Alfredo M. Saavedra
6110 Friars Road, Ste. 203
San Diego, CA 92108


This is to certify that at the request of Mindi Hill, the attending surveyor did, on September 17, 2007, a walk through inspection of the 2006, 40', Albin North Sea Cutter where she lay hauled and blocked ashore at Salt Creek Boat Works in St. Petersburg, Florida.

Information regarding the inspection is contained within the body of the report. This inspection was not a marine survey. No attempt was made to determine the compliance of this vessel with laws, regulations or to determine the specific condition of the hull, deck, engines or systems. The purpose of this inspection was to view, first hand, the general condition and level of outfitting to use in establishing an estimated present day market value.

The following is a report of the examination and findings.

GENERAL INFORMATION

TYPE VESSEL: 40' Albin North Sea Cutter
BUILDER: Albin Marine Inc. Portsmouth, RI
YEAR: 2006 model year
HULL IDENTIFICATION NUMBER: AUL40091506
OFFICIAL NUMBER: 1191485
ENGINE MAKE AND MODEL Twin Yanmar model 6LYA-STP
ENGINE SERIAL NUMBERS: Port: 56115 Starboard: 56114
RECORDED ENGIEN HOURS Port: 93.4 Starboard: 92.9
LOA: 39'6" BEAM: 13'0"
DESIGNED DISPLACEMENT: 25,000 lbs. DRAFT: 3'10"

Albin 40' North Sea Cutter

The 40 Albin North Sea Cutter is a production built, molded fiberglass, fast trawler type of sedan built in China, primarily for export to the American market. Introduced in 2005, the 40' North Sea Cutter remains in current production.

A check of the internet shows seven of this model currently offered for sale on Yachtworld; six 2006 model year examples and one 2007 model year example. Advertising indicates that only one is a used boat for re-sale from an individual owner, the other six are in dealer inventory. Asking prices range from $289,000. To $349,900.


General Condition
The vessel was represented as new but the physical condition indicates age and neglect amongst other issues.

HULL

The hull bottom has flaking antifouling paint, (photos #27 is most representative) hard barnacle growth on the props, shafts, struts, rudders and trim tabs (photos #19, 24 and 25 are most representative) caulking is peeling from the shaft strut mounting bolts (photos #20-25). The moist antifouling paint around the one shaft strut with the peeling caulking (photo #21) indicates moisture in that area.

The hull topsides are lustrous but also have both building flaws and damage. "Hard spots" can be seen in several of the photos, a condition commonly observed in hulls with dark finish. Along with the hard spots were a number of other bubble like visual anomalies. Percussion sounding with a plastic mallet indicated air pockets were trapped within the laminate in these areas. Masking tape was put around the bubbled areas and photographs taken. (photos # 6-18)

Other issues with the topside finish include: orange peel of the finish in the port aft quarter (photo #13) and scratches that appear to have been made by a random orbital sander. (photos #9 and #17)

DECK

The topside gelcoat has a lustrous appearance. The deck hardware is, for the most part is as new condition however; there is a bent U shaped piece welded to the stainless steel safety railing aft of the radar mast, (photo #28) cracks in the molded bosses for the pedestal mounts for the flybridge chairs to bolt to and cracks in the radius of the molded in L shaped bench seat, port aft on the flybridge. The topside varnish finish was allowed to break down and is being re-finished over a poorly prepared surface, trapping in dirt and gray color in the grain of the wood. (Photos #72-75) It will take re-launching and having the vessel sitting on her own bottom to tell if the dirt that accumulates in puddles on the flybridge sole, (Photo #30) which are the result of poor drainage of this area, are a design flaw or simply a product of how the vessel has been blocked up ashore. Other items that show as not new include the bent finger pull on a seat hatch (Photo #36), very sloppy name tag on the compass on the flybridge (Photo #34), dirty storage area (Photo #33) and torn fabric on the passenger seat on the flybridge (Photo #36).

The radar mast has a mounting flange but no braces, rigging or other supports. Having this evaluated by an engineer is suggested. The mast is easily moved and would not likely stand up to the violent motions in a seaway with the weight of the radar radome and satellite television dome mounted on it.

INTERIOR

The interior also shows signs of age but not nearly as much and the hull and deck until the bilges, engine room and lazarette are examined.

In the accommodations we find what appears to be a repair below on of the ports in the forward cabin where the grain of the wood is cross grain from the surrounding wood and cross grain from the same panel below the port on the other side of the cabin. (See photos #44 and 45). Some of the interior hardware is tarnished and or pitted including sink drains. (The photos of these items are included but do not have very good resolution.)

Some of the other issues in the interior include; a spot on one of the berth cushions (Photo #49), discoloration in the wood that has been varnished over (Photo #50), scratches in the varnish (Photo #66).

BILGES AND MACHINERY SPACES

It is in these areas that this vessel really shows her age. Notice the contrast between what has been re-painted and the aging condition of the hoses, clamps and fittings after noting how sloppy the re-painting effort was. (Photos #40 and 41). The drip pan for the forward air conditioner is rusty (Photos #46 and 47) and there is standing water outside of the drip pan (Photos #47 and 48).

The engine room exhibits perhaps the most damage; leaks from the heat exchangers have rusted motor mounts and other components (Photos #53, 54, 55, 59 and 60). There is more evidence of age in the engine room (Photos #56, 57 and 58).

The effort to remove signs of age are seen in photo number 55 where sloppy gray and white paint work contrasts dramatically with surrounding components.

The lazarette was the focus of attention for one of the boat yard workers during this inspection process. The photos show numerous aging components. Missing from this compartment were the bilge pump, the generator and the generator starting battery. (Photos #67-71)


Summary

The inspection conducted was not a survey but rather a first hand viewing of the subject vessel to assist in determining what could be seen on this vessel that showed signs of age. The undersigned marine surveyor was a boatbuilder earlier in his career, has commissioned and delivered hundreds of new yachts and made ready others that were untitled but that had become "shop worn" from sitting between the production process and eventual sale to a retail customer. Applying judgement on this past experience, this vessel is, in the opinion of the undersigned not new. Without examining the paper trail that should accompany this boat, it cannot be determined if the vessel has ever had another owner. The visible condition of components of this vessel reflect age, wear and tear and do not present as new.

The undersigned also was employed last week to examine a 2007 model year 44 foot sailboat that was being retired after one year of active service in a charter yacht fleet. With over 600 engine hours of service during a year in commercial duty it presented in much better physical and cosmetic condition than Kitan.

The inspection of this vessel is based solely on a cursory visual and nondestructive inspection of accessible portions of the vessel structure and available equipment.

No responsibility is assumed for defects in the hull, any machinery, or any equipment latent or otherwise. Attending surveyor, representatives or agents are not to be held responsible for any error of judgment, default, negligent omission, misrepresentation or misstatement in any report. This report is not an inventory or listing for sale and should not be construed as such. This report is not a certificate of seaworthiness and should not be construed as such. No guarantee or warranty is expressed or implied.

Respectfully submitted by,

Rick Shelley, A.M.S.
Accredited Marine Surveyor
Member: S.A.M.S.

Kitan
SAN DIEGO, California
U.S.A.