legal Domain Broker Suing For Commission on FF.com deal

[Silentptnr]

Faraday Future Hit With $210k Lawsuit Over its Domain Name

Faraday Future has been hit with a lawsuit alleging that it failed to pay a broker for acquiring FF.com on behalf of the electric automaker.

It is alleged that Faraday’s former head of corporate communications, Marcus Nelson, employed the help of Suraj Rajwani from Domains Cable to think of a name for the start-up automaker and to register an appropriate domain name.

During negotiations, Nelson said that Faraday would give Rajwani a fee on top of the domain’s purchase price.

Rajwani soon began negotiating with Bank of America to purchase the domain FF.com and put forward an offer of $150,000. Bank of America counter-offered with $2.5 million. Rajwani ultimately told Faraday that he had got the asking price down to $1.5 million.

Unbeknownst to him, the electric automaker took matters into its own hands and went directly to Bank of America to purchase the domain for $1.4 million, cutting out the middle man (Rajwani).

In the lawsuit, Rajwani asks for no less than $210,000 alongside miscellaneous costs and expenses of the suit.

Source: http://www.carscoops.com/2017/02/faraday-future-hit-with-210k-lawsuit.html

 

[Silentptnr]

Hope the broker had a solid written agreement. If not...

 

[Alessandro Couteau]

Exactly !!!

First rule, get a written contract to protect your ass ... I've lost several deals because of practices like this !

It's hilarious that Bank of America proposed FF.com at $2.5M USD ...
Interesting to say the least ...
They declined to make an acquisition of Boa.com and in turn bought Bofa.com ... Just very surprising

$210,000 as well ? What a commission ... More then 10%

 

[Soofi]

Unethical business practices by Faraday!

 

[Silentptnr]

Yes, i agree. Probably hadnt signed any agreement so went right around him. Be interesting to see if it settles.

 

[Tia Wood]

Broker should get what he's owed. It's not easy to broker on that scale so I know he put in some footwork.

 

[pablohc86]

Really interested to know how this will end. If anyone have updates, please post it here. Thanks

 

[Domains - Wanted]

Yes, i agree. Probably hadnt signed any agreement so went right around him. Be interesting to see if it settles.

Anyone who'd proceed to broker such a deal without an agreement in place is practically begging people to cut him out and laugh in his face.

 

[Keith]

Anyone who'd proceed to broker such a deal without an agreement in place is practically begging people to cut him out and laugh in his face.

There was certainly an agreement, be it a formal contract, email or text communication... the broker was clearly authorized to present an offer. He didn't just start making 6 and 7 figure offers without talking to the eventual buyer about specific domains and their budget to buy.

 

[Silentptnr]

I really don't understand why Faraday went around him. According to the article, the broker had informed Faraday that he had BofA down to 1.5 for the domain.

 

[Domains - Wanted]

There was certainly an agreement, be it a formal contract, email or text communication... the broker was clearly authorized to present an offer. He didn't just start making 6 and 7 figure offers without talking to the eventual buyer about specific domains and their budget to buy.

I was referring to a format contract. Email or other forms of communication leave too much room for misunderstanding, which usually ends badly for the intermediary/broker.

 

[168]

From the Faraday site,

"Across all levels, members of the FF team are expected to bring a degree of creativity, honesty, and intellectual rigor to their responsibilities. We hold each other to a high standard" EXCEPT ......

If they live by what they say, the person who approved cutting out the broker should be fired.

Completely agree with Keith, written or not there was clearly a working relationship.

More: jalopnik.com/faraday-future-couldnt-even-pick-a-name-without-getting-1792051930

this site provides more detail and the actual complaint

 

[nothere]

I was referring to a format contract. Email or other forms of communication leave too much room for misunderstanding, which usually ends badly for the intermediary/broker.

True to a point. But if have 4-5 email exchanges with FF and then exchange another 4-5 with BOFA regarding you name....why do you think I did it, considering my profession?

 

[Silentptnr]

In some places, even a verbal agreement can be considered binding. Just more complicated (and probably more expensive) to successfully litigate.

Helping a friend sell a name is one thing, but on big deals a written agreement is absolutely necessary. Its the professional thing to do and protects both buyer and seller. Theres alot more than just "Sell it and I'll pay you a commission." in a proper broker agreement.

Honor system would be great but this is an example of exactly what would happen regularly without a written, legal agreement.

 

[Domains - Wanted]

True to a point. But if have 4-5 email exchanges with FF and then exchange another 4-5 with BOFA regarding you name....why do you think I did it, considering my profession?

You are confusing intent with execution. Perception, with what had been really agreed upon or not. What most people fail to realize is that in most cases, when there is a legitimate disagreement, both sides are right (to a certain degree). Then things get real complicated, because they start rewriting history to fit their perceptions and emotional needs, moving even further apart. This is where a written, signed agreement comes in real handy as a reminder of what had been agreed upon really. Email correspondence can serve this purpose as well, but to a smaller degree.

 

[Keith]

You are confusing intent with execution. Perception, with what had been really agreed upon or not. What most people fail to realize is that in most cases, when there is a legitimate disagreement, both sides are right (to a certain degree). Then things get real complicated, because they start rewriting history to fit their perceptions and emotional needs, moving even further apart. This is where a written, signed agreement comes in real handy as a reminder of what had been agreed upon really. Email correspondence can serve this purpose as well, but to a smaller degree.

A signature isn't required to make something binding. That's an archaic way of thinking in today's times.

The broker and his client clearly established intent and guidelines to perform a transaction. I'll bet the farm that the plaintiff prevails in this case.

 

[urlurl]

If Faraday was smart (assuming there was an actual deal) they would pay the commission. For a large corporation to renege on a deal is a PR disaster. Why would the public deal with a potentially unfair and unreliable company

 

[nothere]

I really don't understand why Faraday went around him. According to the article, the broker had informed Faraday that he had BofA down to 1.5 for the domain.

read the complaint...Apparently "the bosses didn't want to wait that long" was the excuse but me thinks it was done to save on the fee.

Rajwani’s complaint then points to a statement on Nelson’s LinkedIn page that said, while he was running communications for FF, he negotiated and acquired “a new domain purchase (TBA) — saving $400,000,”​

jalopnik.com/faraday-future-couldnt-even-pick-a-name-without-getting-1792051930

No written contract, they were friends, several text messages...

 

[Silentptnr]

read the complaint...Apparently "the bosses didn't want to wait that long" was the excuse but me thinks it was done to save on the fee.

Rajwani’s complaint then points to a statement on Nelson’s LinkedIn page that said, while he was running communications for FF, he negotiated and acquired “a new domain purchase (TBA) — saving $400,000,”​

jalopnik.com/faraday-future-couldnt-even-pick-a-name-without-getting-1792051930

No written contract, they were friends, several text messages...

Wow, that's terrible business. The "400,000" clearly indicates he knew the broker payment was part of the deal.

 

[urlurl]

Business Image 101 "deal with issues internally and don't let the bad press get out"

 

[168]

Keith,
"The broker and his client clearly established intent and guidelines to perform a transaction".
Agree.
Also, since the broker and the client had a history it would be reasonable to assume fulfillment of intent verbal or otherwise. (email)
If he was a stranger not known to the broker, I doubt any work would have been done without a written agreement.
I routinely fulfill verbal requests from clients without insisting on a written, signed agreement every time. They in turn routinely pay the agreed upon amount. It's called "Integrity".

 

[wot]

I see commission plus damages plus costs, FF.com is going to cost a lot more than they thought they had got away with.

 

[johname]

I didnt know you can go to Bank of America and buy a domain lol

Law suit filed in home town of BofA

 

[deez007]

When banks start trading in domain names, then we are in for a new level of [email protected]

 

[168]

When banks start trading in domain names, then we are in for a new level of [email protected]

yea, when they realize how many crappy domains there are they can package them and sell them as digital derivatives and bankrupt the internet.