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Richard Branson's Virgin group wins suit against Florida train company Brightline

Virgin Enterprises, led by Richard Branson (pictured in 2016 during the unveiling of a new fleet of Virgin Trains), on Thursday won a lawsuit against an American train company that had ended a licensing agreement with it over allegations involving its reputation. File Photo by Will Oliver/EPA-EFE
1 of 2 | Virgin Enterprises, led by Richard Branson (pictured in 2016 during the unveiling of a new fleet of Virgin Trains), on Thursday won a lawsuit against an American train company that had ended a licensing agreement with it over allegations involving its reputation. File Photo by Will Oliver/EPA-EFE

Oct. 12 (UPI) -- Richard Branson's Virgin Enterprises on Thursday won a British lawsuit against an American train company that had ended a licensing agreement with Virgin and that had said Branson's company was no longer "of high repute."

Virgin sued Brightline Holdings for ending a deal to rebrand itself as Virgin Trains USA. But Judge Mark Pelling ruled in favor of Branson's company.

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Brightline's defense in the lawsuit was to maintain that it was entitled to end the agreement if Virgin had ceased to be a "brand of international high repute."

But the judge ruled Brightline did not prove that point.

"Although it was suggested by Brightline that its standing with consumers was damaged by its continued association with Virgin, there is no evidence that is so," Pelling wrote in his decision. "I conclude that Brightline has failed to prove any of the three issues it had to prove if it was to succeed in its defense and for that reason the claim succeeds."

Virgin has asked for more than $243 million in damages

Virgin argued in court that Brightline's allegation was "cynical and spurious."

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Brightline's decision to end its licensing agreement with Virgin came shortly after Virgin Atlantic airline declared bankruptcy in 2020.

Another Branson company, satellite launch company Virgin Orbit, declared bankruptcy in April.

Brightline started operating trains between Miami and West Palm Beach in 2018. Earlier this year it expanded daily service north to Orlando.

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