The plaintiff wanted to open a Victoriaâs Secret franchise in Puerto Rico. Defendant Domingo, a business broker, told the plaintiff that the franchise was a "done deal" if the plaintiff hired the defendantâs firm and also hired former United States Senator Birch Bayhâs firm to assist. In reliance on the defendantâs representations, the plaintiff entered into retainer agreements with the two firms, paying them $225,000 and $400,000, respectively.
Several months later, someone from Bayhâs firm emailed the plaintiff that he could not get the franchise because Victoriaâs Secret did not use a franchise system, and instead owned and operated its own stores. The plaintiff sued Domingo, Bayh, and their firms. Bayh and his law firm settled for an undisclosed amount, and a jury awarded damages of $625,000 against Domingo and his firm. On appeal, the judgment was affirmed.
Required:
1. What do you believe was the legal basis for the lawsuit?
2. Why do you agree or disagree with the outcome of this case?