Goodness what an awful situation which highlights the need for surrogacy to be properly regulated.
The birth mother should have had thorough counselling before being allowed to act as a surrogate.
My gut feeling is that the child should stay with his birth mother and have court agreed contact with the bio father. This will cause the child the least amount of emotional harm in my opinion. ( assuming both parties are capable of parenting)
I don't agree that adoption by a third party is the right course of action and I say that as an adoptive mother.
Adoption should be an absolute last resort and I believe that even my own DS's mental and emotional well being would have been better had his birth mother been able to parent him herself.
We are doing the best we can as adoptive parents but the trauma of being removed from his primary carer as a 10 month old still causes him problems even as a 10 year old - and will continue to do so for the rest of his life.
I really feel for everyone involved in this sorry story but the child's well being is the most important thing to consider.