Justia Professional Malpractice & Ethics Opinion Summaries

InfoDeli, LLC and Breht C. Burri (collectively, InfoDeli) brought a lawsuit against Western Robidoux, Inc. (WRI), Engage Mobile Solutions, LLC, and other defendants, including members of the Burri family and several companies. InfoDeli alleged copyright infringement, tortious interference, and violations of the Missouri Computer Tampering Act (MCTA). The dispute arose from a joint venture between InfoDeli and WRI, where InfoDeli created webstores for clients, and WRI provided printing and fulfillment services. The relationship deteriorated when WRI hired Engage to replace InfoDeli's webstores, leading to the lawsuit.The United States District Court for the Western District of Missouri granted summary judgment to the defendants on the copyright infringement claim, dismissed or tried the remaining claims before a jury, which found in favor of the defendants. The district court also granted in part and denied in part InfoDeli's sanctions motion and awarded attorney’s fees and costs to the defendants. InfoDeli appealed these decisions.The United States Court of Appeals for the Eighth Circuit reviewed the case. The court affirmed the district court's grant of summary judgment on the copyright infringement claim, finding that InfoDeli failed to show that the nonliteral elements of its webstores were protected by copyright. The court also upheld the district court's denial of InfoDeli's motion for summary judgment on CEVA's conversion counterclaim, finding it was timely under Missouri law. Additionally, the court affirmed the district court's denial of InfoDeli's posttrial motions for judgment as a matter of law and a new trial as untimely.The Eighth Circuit also reviewed the sanctions imposed by the district court and found no abuse of discretion in the amount awarded or the decision not to impose additional sanctions under Rule 37(e). Finally, the court upheld the award of attorney’s fees and costs to the defendants, finding that the district court did not abuse its discretion in its assessment. The court affirmed the district court's decisions in all respects. View "InfoDeli, LLC v. Western Robidoux, Inc." on Justia Law

In 2020, Mix Creative Learning Center, an art studio offering children's art lessons, began selling online art kits during the pandemic. These kits included reproductions of artworks from Michel Keck's Dog Art series. Keck sued Mix Creative and its proprietor for copyright and trademark infringement, seeking enhanced statutory damages for willful infringement.The United States District Court for the Southern District of Texas found that the fair use defense applied to the copyright claim and granted summary judgment to Mix Creative. The court also granted summary judgment on the trademark claim, even though Mix Creative had not sought it. Following this, the district court awarded fees and costs to Mix Creative under 17 U.S.C. § 505 but declined to hold Keck’s trial counsel jointly and severally liable for the fee award under 28 U.S.C. § 1927.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's judgment. The appellate court held that the fair use defense applied because Mix Creative’s use was transformative and unlikely to harm the market for Keck’s works. The court also found that any error in the district court’s sua sponte grant of summary judgment on the trademark claim was harmless, given the parties' concession that the arguments for the copyright claim applied to the trademark claim. Lastly, the appellate court ruled that the district court did not abuse its discretion in awarding fees to Mix Creative or in refusing to hold Keck’s attorneys jointly and severally liable for the fee award. View "Keck v. Mix Creative Learning Center" on Justia Law

In 2005 E3’s predecessor began construction of an ethanol plant, to be powered, in part, by methane, and contracted with Biothane for a boiler system. Biothane, an expert in systems integration but not in boilers specifically, subcontracted with PEI to install and integrate the boilers. Biothane retained overall responsibility. Both are engineering companies. In 2007, PEI’s engineer repeatedly tried and failed to light the main flame of one of the boilers. The repeated attempts caused gas to build up and explode. E3 claims that the boiler never worked properly afterward and that the plant failed as a result. The plant’s owners eventually reorganized in bankruptcy. In 2011 (3 years and 364 days after the explosion) E3 sued, alleging torts against both companies and breach of contract against Biothane. The district court granted defendants summary judgment, finding all of E3’s claims time-barred under Neb. Rev. Stat. 25-222, Nebraska’s two-year limitations period for actions based on professional negligence. The Eighth Circuit affirmed. Regardless of whether the chain of events ultimately led to the breach of a contract, E3 still sued Biothane “for an action performed in a professional capacity.” View "E3 Biofuels, LLC v. Biothane, LLC" on Justia Law

The owner consulted with two architectural firms, T-Peg and VTW. T-Peg drew up a preliminary design then worked with the owner to refine the design. In 2001, T-Peg registered its design with the Copyright Office. Meanwhile, in 2000, the owner showed T-Peg's unregistered preliminary design to VTW, which began working on its own design. VTW completed its plan in 2002 with significant, minutely detailed input from the owner. Completed construction apparently reflected T-Peg's registered design. In a suit for copyright infringement, the court granted summary judgment for VTW and the owner, concluding that no reasonable jury could find that T-Peg's and VTW's designs were substantially similar. The First Circuit reversed and, following trial, the jury found in VTW's favor and rejected T-Peg's infringement claims. VTW sought fees of more than $200,000 under 17 U.S.C. 505. The district court granted VTW a fee award of $35,000. The First Circuit affirmed, finding that the district court adequately elaborated its reasoning. View "T-Peg, Inc. v. VT Timber Works, Inc." on Justia Law