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Justia Business Law Opinion Summaries
Molson Coors Beverage Co. v. Anheuser-Busch Companies, LLC
In 2019, Anheuser-Busch began to advertise that its beer, Bud Light, is made using rice, while Miller Lite and Coors Light use corn syrup as a source of sugar that yeast ferments into alcohol. Molson Coors responded by advertising that its beers taste be]er because of the difference between rice and corn syrup. In a lawsuit, Molson contended that Anheuser-Busch violated section 43 of the Lanham Act, 15 U.S.C. 1125, by implying that a product made from corn syrup also contains corn syrup. After a remand, the district court issued an injunction.The Seventh Circuit affirmed to the extent that the order denied Molson’s request for an injunction and reversed to the extent that the Bud Light advertising or packaging was enjoined. To the extent that the injunction prevents Anheuser-Busch from stating that Miller Lite or Coors Light “contain” corn syrup, it was vacated; Anheuser-Busch has never stated this nor said that it wants to do so but only made the true statement that “their beer is made using corn syrup and ours isn’t.” View "Molson Coors Beverage Co. v. Anheuser-Busch Companies, LLC" on Justia Law
Scalia v. Paragon Contractors
Defendants-Appellants Paragon Contractors Corporation and Brian Jessop (Paragon) appealed a district court’s order, findings of fact and conclusions of law regarding the calculation of back wages. Plaintiff-Appellee United States Secretary of Labor (Secretary) sought to compel Paragon to replenish a fund established to compensate children employed without pay in violation of both the Fair Labor Standards Act (FLSA) and an injunction. Paragon had previously been held in contempt for violating the injunction. On appeal, Paragon contended the district court failed to adhere to the elements of a back wage reconstruction case under Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (1946). Specifically, Paragon argued the district court erred in: (1) concluding that the Secretary established a prima facie case; (2) imposing an improperly high burden for rebutting the inferences arising from that case and holding that Paragon failed to rebut certain inferences; and (3) declining to apply a statutory exemption. Finding no reversible error, the Tenth Circuit affirmed. View "Scalia v. Paragon Contractors" on Justia Law
Yeransian v. Willkie Farr & Gallagher LLP
The Supreme Court affirmed the order of the district court dismissing Plaintiff's complaint against Defendant, a law firm, holding that the district court correctly determined it lacked jurisdiction over the complaint.Defendant had represented Aspen Holding, Inc. when Aspen merged with and was acquired by Markel Corporation. As a representative of Aspen's former shareholders, Plaintiff brought suit seeking to obtain the Aspen attorney-client filed for the former shareholders' dispute with Markel over payments from the merger. The district court granted Defendant's motion to dismiss, finding (1) Plaintiff failed to allege that Defendant had the requisite minimum contacts with the State, and therefore, the court did not have personal jurisdiction over Defendant; and (2) Plaintiff failed to state a claim upon which relief could be granted. The Supreme Court affirmed, holding (1) the district court did not err in denying Plaintiff's motion regarding jurisdictional discovery; and (2) Plaintiff failed to establish a continuing substantial connection under the operative facts of the litigation to establish that Defendant had sufficient minimum contacts with Nebraska for the exercise of specific personal jurisdiction. View "Yeransian v. Willkie Farr & Gallagher LLP" on Justia Law
Advanced Fluid Systems Inc v. Huber
Huber stole confidential information from his employer AFS (a manufacturer of hydraulic systems) for an AFS competitor, Livingston, and later for a company he created, INSYSMA, to compete against both AFS and Livingston. AFS eventually sued, alleging trade secret misappropriation claims under the Pennsylvania Uniform Trade Secrets Act. On summary judgment, the district court held as a matter of law that Huber and INSYSMA were liable under the Trade Secrets Act for misappropriating AFS’s trade secrets. Following a bench trial, the court held Livingston and two of its employees jointly and severally liable with Huber and INSYSMA for that misappropriation, and held all defendants except a Livingston employee and INSYSMA liable for breach of fiduciary duty or aiding and abetting that breach, and awarded compensatory damages, exemplary damages, and punitive damages from various defendants.The Third Circuit affirmed, rejecting arguments that AFS does not “own” the purported trade secrets at issue; that the claimed trade secrets are not actually protectable under the Trade Secrets Act, that the Livingston Parties were prejudiced by their counsel’s conduct at and following the trial, and that the damages awards were unwarranted. The Act only requires that a plaintiff lawfully possess the trade secrets it wishes to vindicate. View "Advanced Fluid Systems Inc v. Huber" on Justia Law
Huls v. Meyer
The Supreme Court dismissed for lack of appellate jurisdiction Appellants' appeal from the circuit court's order granting summary judgment dismissing some but not resolving all of the parties' claims, holding that the circuit court's summary judgment order was indisputably not final.The circuit court's order granting summary judgment did not resolve all of the parties' claims, and it was not certified as a final decision prior to Appellants' appeal. The Supreme Court dismissed the appeal without reaching the merits of the appeal, holding that because the circuit court resolved only part of the case and the summary judgment order did not cite S.D. Codified Laws 15-6-54(b) (Rule 54(b)), did not designate the order as final, and was not accompanied by a reasoned statement supporting a Rule 54(b) certification, this Court lacked appellate jurisdiction. View "Huls v. Meyer" on Justia Law
Colucci v. T-Mobile USA, Inc.
T-Mobile USA, Inc. (T-Mobile) appeals a judgment entered on a $5 million jury verdict in favor of former employee Stephen Colucci in a workplace retaliation case. T-Mobile primarily challenged the punitive damages award, arguing insufficient evidence was presented at trial that a T-Mobile agent engaged in retaliatory conduct, or that the agent's actions were malicious or oppressive. Alternatively, T-Mobile argued the $4 million punitive damages award was constitutionally excessive. Stephen Colucci worked for T-Mobile from 2007 until 2014 as the manager of a store in Ontario, California. A series of incidents ranging from a medical accommodation request, defamatory comments made by co-workers, and an allegation that Colucci was running a side business while on duty for his T-Mobile store. On day, complaining of back pain, Colucci was permitted to leave work for the day; while away, Robson recommended to HR that T-Mobile terminate Colucci for "cause" (conflict of interest), notwithstanding no loss prevention investigator interviewed Colucci or any co-workers about Colucci's alleged side-dealings while on T-Mobile time. In making this decision, Robson admittedly bypassed T-Mobile's progressive discipline policy, which might have included a warning or less severe consequence before resorting to termination. Information about the alleged conflict of interest had come almost entirely from the associate; at no point did anyone speak to Colucci about a purported conflict. Unaware of any pending termination, Colucci submitted a formal request to HR for a medical leave of absence. Colucci also lodged a second complaint to T-Mobile's integrity line, reporting that Robson was discriminating against him and neglecting to resolve the defamation incident. Undeterred, Robson proceeded with processing Colucci's termination. Ultimately, a jury returned a unanimous verdict in Colucci's favor on his claim of retaliation, awarding $1,020,042 in total compensatory damages for past and future economic losses, and past and future noneconomic damages and/or emotional distress. After review, the Court of Appeal reduced the punitive damages award to an amount one and one-half times the amount of compensatory damages, but otherwise affirmed the judgment. View "Colucci v. T-Mobile USA, Inc." on Justia Law
New Jersey Coalition of Automotive Retailers, Inc. v. Mazda Motor of America Inc
The Coalition, an association of franchised New Jersey new car dealerships, filed suit under the New Jersey Franchise Practices Act on behalf of 16 Mazda dealer-members. Mazda had an incentive program for its franchised dealers (MBEP), which provides incentives, per-vehicle discounts or rebates on the dealers’ purchases of vehicles from Mazda, to dealers who make certain investments in their physical facilities that highlight their sale of Mazda vehicles or dedicate their dealerships exclusively to the sale of Mazda vehicles. The incentives come in different tiers, with the highest tier available to dealers who have exclusive Mazda facilities and a dedicated, exclusive Mazda general manager. Mazda dealers also earn incentives if they meet customer experience metrics. Mazda dealers who sell other brands of vehicles as well as Mazdas, do not receive incentives for brand commitment. Only three of the 16 Mazda dealers in the Coalition qualified for the highest tier; eight others qualified for some tier of incentives. The complaint alleged that the MBEP creates unfair competitive advantages for dealers who qualify for incentives under the MBEP at the expense of those dealers who do not, and even among incentivized dealers through different tiers.The Third Circuit reversed the dismissal of the case, rejecting as too narrow the district court’s rationale--that the Coalition lacked standing because only five of the 16 Mazda dealers would benefit from the lawsuit, so the Coalition cannot possibly be protecting the interests of its members. View "New Jersey Coalition of Automotive Retailers, Inc. v. Mazda Motor of America Inc" on Justia Law
Quincy Bioscience, LLC v. Ellishbooks
Quincy develops and sells dietary supplements. Its Prevagen® product is sold through brick‐and‐mortar stores and online. Quincy registered its Prevagen® trademark in 2007. Ellishbooks, which was not authorized to sell Prevagen® products, sold dietary supplements identified as Prevagen® on Amazon.com, including items that were in altered or damaged packaging; lacked the appropriate purchase codes or other markings that identify the authorized retail seller of the product; and contained Radio Frequency Identification tags and security tags from retail stores. Quincy sued under the Lanham Act, 15 U.S.C. 1114. Ellishbooks did not answer the complaint. Ellishbooks opposed Quincy’s motion for default judgment, arguing that it had not been served properly and its Amazon.com products were “different and distinct” from the Quincy products The court entered default judgment, finding that Quincy had effected “legally adequate service.” Ellishbooks identified no circumstances capable of establishing good cause for default. Quincy had subpoenaed and submitted documents from Amazon.com establishing that Ellishbooks had received $480,968.13 in sales from products sold as Prevagen®.The district court entered a $480,968.13 judgment in favor of Quincy, plus costs, and permanently enjoined Ellishbooks from infringing upon the PREVAGEN® trademark and selling stolen products bearing the PREVAGEN® trademark. The Seventh Circuit affirmed, rejecting arguments that the district court failed to make “factual findings on decisive issues” and erred in holding that Ellishbook knew or had reason to know that a portion of the Prevagen® products were stolen. View "Quincy Bioscience, LLC v. Ellishbooks" on Justia Law
Imamura v. General Electric Co.
In this class action lawsuit stemming from the 2011 nuclear disaster at the Fukushima Daiichi Nuclear Power Plant (FNPP) in Japan, the First Circuit affirmed the judgment of the United States District Court for the District of Massachusetts dismissing Plaintiffs' suit under the doctrine of forum non conveniens, holding that the district court did not abuse its discretion in finding that an adequate alternative forum was available in Japan.Plaintiffs were individuals and business entities who suffered property damage and/or economic harm as a result of the FNPP disaster. Plaintiffs filed suit against General Electric Company (GE) alleging that GE negligently designed the FNPP's nuclear reactors and safety mechanisms, both of which were implicated in the explosions. Plaintiffs alleged that venue was proper in the District of Massachusetts because GE maintained its corporate headquarters and principal place of business in Boston, Massachusetts. The district court dismissed the suit under the doctrine of forum non conveniens, determining that an adequate alternative forum was available to Plaintiffs in Japan and that dismissal was in the private and public interest. The First Circuit affirmed, holding that Japan satisfied the forum availability requirement despite the jurisdictional idiosyncrasies presented in this case. View "Imamura v. General Electric Co." on Justia Law
Infogroup, Inc. v. DatabaseUSA.com LLC
The Eighth Circuit affirmed judgments against DatabaseUSA for copyright infringement and Vinod Gupta for breach of contract. After Gupta founded Infogroup, he and the company entered a separation agreement. Then Gupta found DatabaseUSA two years later.The court held that a reasonable juror, based on the evidence at trial, could have found Infogroup owned a valid copyright; a reasonable juror could have concluded that DatabaseUSA copied the original elements of Infogroup's work; and, because of spoliation, DatabaseUSA's two arguments against copying fail. Finally, the court affirmed the $11.2 million award for the copyright infringement claim and the $10 million award for the breach of contract claim. View "Infogroup, Inc. v. DatabaseUSA.com LLC" on Justia Law