Brightline Is Being Sued By Virgin For $250 Million Over Naming Deal Termination

Brightline is being sued by Richard Branson’s Virgin Enterprises Ltd.

Virgin is seeking $251.3 million in damages over Brightline’s decision to terminate a naming deal with the company.

According to the lawsuit, Brightline said it was terminating the deal in the summer of 2020, claiming that the “Virgin brand had ceased to constitute a brand of international high repute, largely because of matters related to the pandemic.”

Virgin claims that any suggestion that its name brand was tarnished is “cynical and spurious” and “completely false.”

Brightline first told Virgin in April 2020 that the brand was tarnishing its reputation, and served a notice to cure. Virgin then filed its own notice of termination in August.

Brightline continued to use the Virgin imagery on Twitter at the time the termination was filed – proof that the brand wasn’t in fact damaging its reputation, the suit claims.

The 20 year deal Brightline-Virgin deal began in 2018. The earliest it could have been terminated was 2023, when an early exit fee would have been charged.

The $251.3 being sought by Virgin includes what it would have collected through 2023, plus the early termination fee.

The lawsuit was filed in London on February 10, and was first reported by Law360.

 

(photo: brightline)

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J.M.
6 months ago

Both companies are being ridiculous.

Anonymous
6 months ago

Hey, “it’s all about the Benjamins.” Or the Queens.

Anonymous
6 months ago

That picture is so funny when paired with this article LMAO

Bob
6 months ago

then again, virgin failed to deliver on the deal.

Mar
6 months ago

Honest question: what was virgin supposed to deliver?

Anonymous
6 months ago

How would a London court have jurisdiction over a Florida company that only does business in the US?

Anonymous
6 months ago

Good question.
Most likely a federal treaty. Rail is both federal and state with concurrent jurisdiction, and probably a federal treaty in place. Also, an argument that Virgin planes and cruises were tied into this state rail system as it was all interconnected with Virgin packages. Eg. Fly to Orlando, train to Miami, cruise out of port of Miami. Nonetheless, I am sure some jurisdictional affirmative defenses will be made.

Anonymous
6 months ago

London court not U.S. Federal Court. If there is jurisdiction in the U.K. it would be a simple contract clause.

Anonymous
6 months ago

Because their contract likely calls for jurisdiction in the U.K.

Anonymous
6 months ago

Are all the food spots also closed on food hall deck? Wonder how those restaurants got compensated, or if there were clauses in thier leases if Brightline shut down for extended time.

Anonymous
6 months ago

I live in the towers above and they are still closed.

Anonymous
6 months ago

When it rains, it pours, everything is slamming brightline.

Anonymous
6 months ago

Brightline is losing this one…watch them settle before it is all over. Guaranteed.

Anonymous
6 months ago

The Virgin name means nothing anyways when the place is shut down due to a pandemic. All Virgin cruise lines that brought synergy into agreement have not, and have still not sailed.
Open the train service up and get all cruise ships out. Time to open!

Anonymous
6 months ago

Sure, open them up.. why should you care anyway, you’re not the one who could get sued.

Anonymous
6 months ago

WHAT COVID, THERE IS NO FRICKING COVID!!!!

Anonymous
6 months ago

Naming rights??? I thought it was equity purchase.

Long MIA
6 months ago

Nope. So many Miamians thought Branson was buying in, but anyone who knows his business, knows Virgin is a licensing house, Virgin Galactic excepted.

Anonymous
6 months ago

No one knows what Brightline is, the Virgin brand brought awareness, fun and cache, especially when paired to the new cruise line and hotel being built in South Florida. Plus it doesnt look like Brightline sought another naming deal.

Anonymous
6 months ago

We all know what brightline is! The death train

Anonymous
6 months ago

People get hit by buses and cars all the time. Do you call them death buses and death trains? People dont bother giving a turn signal in this city. Do you think that people killed at train crossings obey train traffic signals? Majority of these incidents are suicides or blatant running of the train signals.

Anonymous
6 months ago

We all know what Brightline is and I continued to call it Brightline when it was Virgin, like people call the Willis Tower Sears Tower.

The only brand awareness of Virgin would have been people from U.K., where it was notorious for ruining many inter-city train services. Anybody else just laughs at the name.

Anonymous
6 months ago

“Virgin then filed its own notice of termination in August”

Wasn’t the pandemic in full effect by then? I’m sure Virgin has been hemorrhaging money since the covid virus 19 hit the United States.

Anonymous
6 months ago

“Virgin then filed its own notice of termination in August”
So virgin was going to terminate anyway.
Lawsuit should be thrown out.

Anonymous
6 months ago

Brightline missed the boat on this one.