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

 

[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.

 

[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.

 

[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

 

[Alessandro Couteau]

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

It's funny though, they won't respond if you try to sell them something, not even Bank.com but if you want to buy their name or any of their names, "they are always interested"
Hahaha banks

 

[DN Invest Ltd]

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

We lost almost $100k as a commission last year because we did not have exclusive domain brokerage agreement. Lesson learned.
It was a LL.com domain. We had a $1M offer and the seller wanted at least $1.6M. The next day our man in Hangzhou should be present on a summit where we would most likely get $1.6M offer, or at least $1.2M. We arranged all and then, only one day before the summit, the whois changed and we noticed the domain was sold! Aghhhh! Later we get the info it was sold for $1.2M. Since then, we are forcing exclusive domain brokerage agreement wherever we can.

If the broker had exclusive domain brokerage agreement in this case (and if it was well written), then he will get his commission Agreements are not used because someone is bored and wants to place some ink on paper.

 

[Soofi]

Unethical business practices by Faraday!

 

[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.

 

[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.

 

[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?

 

[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

 

[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".

 

[LarryDomain]

They do own Loans.com and Citi owns mortgage.com so they are somewhat domain savy. FF.com was probably part of bank or company they bought. First Financial or whatever ...

The bought First Franklin a few years back. Lucky they were savvy enough to hold onto the domain. That would have been a massive drop.

 

[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%

 

[pablohc86]

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

 

[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

 

[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.

 

[nothere]

It's funny though, they won't respond if you try to sell them something, not even Bank.com but if you want to buy their name or any of their names, "they are always interested"
Hahaha banks

They do own Loans.com and Citi owns mortgage.com so they are somewhat domain savy. FF.com was probably part of bank or company they bought. First Financial or whatever ...

 

[deez007]

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

Bwhahhaha and give off massive loans on cr@p virtual property to people who can not afford to payback the loans... package them all into derrivatives.

 

[JoeE]

This can not end well for Faraday. The broker was authorized to negotiate on their behalf and I don't think they can deny that. And they cut him out while they claim integrity/Honesty is a major pillar of their business. They'd better compensate the broker very quickly before this escalates and maybe throw in some equity in their otherwise ruined business PR if they don't. The broker should expect a good payday through settlement.