Richard Branson’s Virgin has won a judgement in a UK court against former partner Brightline Holdings.
The two companies partnered in a licensing agreement for the Brightline Florida rail service.
It was originally branded as Virgin Trains USA but Brightline pulled the plug, claiming Virgin was no longer a ‘high repute’ brand.
This happened after Virgin lost the UK rail franchise.
In 2020, Virgin Atlantic filed for Chapter 15 bankruptcy in the US –a procedural filing to allow the US courts to recognise the £1.2bn privately funded recapitalisation of the airline.
Brightline argued that Virgin had ‘ceased to constitute a brand of international high repute.’
Virgin called that ‘cynical and spurious.’
Judge Mark Pelling ruled for Virgin Enterprises, saying there was ‘no evidence Brightline’s standing with consumers was damaged by association with Virgin.’
It failed to supply any proof it suffered material damage, the judge said.
Brightline says it plans to appeal.
Virgin sued Brightline for about $200 million.
A settlement amount will be awarded at a later hearing.
Brightline, owned by Fortress Investment Group, launched rail services in Florida, linking Miami with West Palm Beach.
It now extends to Orlando.
