A Virgin company has begun a High Court fight with an American train operator which pulled out of a deal after alleging that the “Virgin model” had stopped being a “model of worldwide excessive reputation”.
Attorneys representing Virgin Enterprises informed a decide at a High Court listening to in London that Brightline Holdings’ allegation was “cynical and spurious”.
The deal meant that Brightline would rebrand its rail companies in america as “Virgin Trains USA”, Decide Mark Pelling heard.
Very quickly after concluding the (settlement), it seems that Brightline had second ideas in regards to the deal it had struck and commenced in search of a option to extricate itself from it as quickly as doable and with out paying the contractually agreed exit payment
Attorneys representing Virgin Enterprises
Virgin Enterprises says Brightline is in breach of a trademark licence settlement and needs round £200 million damages, the decide was informed.
Brightline says Virgin Enterprises’ declare needs to be dismissed.
Decide Pelling has begun overseeing a trial, on the Rolls Constructing in central London, which is because of final three weeks.
He heard that Virgin Enterprises was a part of the Virgin Group, based by businessman Sir Richard Branson, and managed mental property referring to the “Virgin model”.
Brightline sought to terminate the (settlement) on the premise of a cynical and spurious allegation that the Virgin model had ceased to be a model of worldwide excessive reputation
Attorneys representing Virgin Enterprises
“This dispute arises out of a trademark licence settlement dated November 15 2018 between (Virgin Enterprises) and (Brightline) pursuant to which Virgin Enterprises agreed to license the Virgin model to Brightline such that Brightline would rebrand its rail companies in the USA as ‘Virgin Trains USA’,” Daniel Toledano KC, Emma Himsworth KC, and Maximilian Schlote informed the decide in a written case define.
“The time period of the (settlement) was for an preliminary 20 years, which was extendable.”
They mentioned a clause in the settlement allowed Brightline to terminate the settlement, after giving written discover, if the Virgin model had ceased to be a “model of worldwide excessive reputation” – and informed the decide that an “exit payment” had been agreed.
“Very quickly after concluding the (settlement), it seems that Brightline had second ideas in regards to the deal it had struck and commenced in search of a option to extricate itself from it as quickly as doable and with out paying the contractually agreed exit payment,” they added.
“On the top of the primary wave of the Covid-19 world pandemic, Brightline sought to terminate the (settlement), on the premise of a cynical and spurious allegation that the Virgin model had ceased to be a model of worldwide excessive reputation.”
Attorneys representing Brightline informed the decide that the declare needs to be dismissed.
“It is a declare introduced by (Virgin Enterprises) towards Brightline for very substantial sums – in extra of 250 million US {dollars} – mentioned to be due as damages for breach of a trademark licence settlement between the events dated November 15 2018,” they mentioned.
“Brightline terminated the (settlement) on July 29 2020.
“(Virgin Enterprises) claims that this was a renunciatory breach of the (settlement).”
The legal professionals mentioned the “legal responsibility” situation the decide needed to determine was, “merely acknowledged”, was Brightline “entitled to terminate” the settlement.
They added: “The declare needs to be dismissed.”
