Articles Posted in US Court of Appeals for the Eleventh Circuit

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In 2011 and 2012, a number of individuals and closely held corporations known as Treasure Your Success (TYS) operated a fraudulent credit card interest reduction scheme. Universal Processing Services of Wisconsin, LLC (Universal) violated the Telemarketing Sales Rule (TSR), 16 C.F.R. 310.1 et seq., by providing substantial assistance to the TYS schemers. The district court found that a violation of the TSR constitutes an “unfair or deceptive act or practice” in violation of the Federal Trade Commission Act. As such, the district court was authorized to order restitution and disgorgement. Furthermore, the court clarified that substantial assistance under the TSR was itself sufficient to justify joint and several liability. The court reaffirmed its order holding Universal jointly and severally liable; Universal contended that was error and joint and several liability can only lie where the defendant is a participant in a common enterprise with the primary violators. The Eleventh Circuit concluded after review the district court did not abuse its discretion in holding Universal jointly and severally liable with the members of the TYS scheme. View "Federal Trade Comm'r v. Universal Processing Services of Wisconsin, LLC" on Justia Law

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SCAD appealed the district court's grant of summary judgment in favor of Sportswear in an action where SCAD asserted a number of claims against Sportswear, including service mark infringement under 15 U.S.C. 1114; unfair competition and false designation of origin under 15 U.S.C. 1125; and unfair competition under O.C.G.A. 10-1-372. The Eleventh Circuit reversed, holding that this case did not involve the alleged infringement of a common-law trademark, and as a result the date of SCAD's first use of its marks on goods was not determinative. Therefore, Boston Prof’l Hockey Ass’n, Inc. v. Dallas Cap & Emblem Mfg., Inc., 510 F.2d 1004 (5th Cir. 1975), controls, as it extends to protection for federally-registered service marks to goods. Accordingly, the court remanded for further proceedings. View "Savannah College of Art and Design, Inc. v. Sportswear, Inc." on Justia Law

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The Eleventh Circuit reversed the dismissal of five complaints filed by automobile body shops, asserting federal antitrust and state tort claims against insurance companies. The court held that the shops pleaded enough facts to plausibly support their federal antitrust and state tort claims. In this case, the body shops argued that the insurance companies engaged in two lines of tactics in pursuit of a single goal: to depress the shops' rates for automobile repair. The body shops have supplied enough allegations to raise a reasonable expectation that discovery will reveal evidence of an illegal agreement; the body shops have consistently alleged the existence of parallel conduct and of plus factors allowing a plausible inference of an illegal agreement; and the allegations have sufficiently established the body shops' state tort claims of unjust enrichment, quantum meruit, and tortious interference. Accordingly, the court remanded for further proceedings. View "Quality Auto Painting Center of Roselle, Inc. v. State Farm Indemnity Co." on Justia Law

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The Eleventh Circuit affirmed the Tax Court's determination that petitioner was liable as a transferee under 26 U.S.C. 6901 for his former employer's unpaid taxes. Because the state substantive law in this case does not require exhaustion for liability to exist, the court held that the Commissioner was not required to exhaust remedies against the company before proceeding against petitioner as a transferee. In this case, applying Florida law, the court held that petitioner could not definitively prove that the Dividend Payments were a part of his employment with FECP and because he did not raise any other argument for why FECP might have received reasonably equivalent value even if the dividends were not compensation, the court must conclude that they were dividends for which FECP did not receive reasonably equivalent value. As such, the court affirmed the Tax Court's determination that the reasonable-value element of constructive fraud under the Florida Uniform Fraudulent Transfer Act was satisfied for all of the Dividend Payments. When considered together, those dividend payments were substantial enough for the Tax Court to conclude that they led to the insolvency of FECP. View "Kardash v. Commissioner of IRS" on Justia Law