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U.S. Supreme Court Oral Arguments

Dewberry Group, Inc. v. Dewberry Engineers Inc.

U.S. Supreme Court Oral Arguments

Oyez

National, Government & Organizations

4.6640 Ratings

🗓️ 11 December 2024

⏱️ 71 minutes

🧾️ Download transcript

Summary

A case in which the Court held that an award of the “defendant’s profits” under the Lanham Act is limited to those earned by the named defendant in that case, exclusive of legally separate non-party corporate affiliates.

Transcript

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0:00.0

We will hear argument this morning in case 23-900, Dewberry Group v. Doobury Engineers.

0:05.7

Mr. Hungar?

0:06.8

Thank you, Mr. Chief Justice, and may it please the Court.

0:09.8

The Lanham Act authorizes disgorgement of the defendant's profits.

0:13.7

Petitioner is the only defendant in this case, but it had no profits to disgorge.

0:18.3

So the courts below ordered Petitioner to disgorge the profits of its

0:21.5

legally distinct affiliates to the tune of $43 million. Nothing in the Lanham Act

0:27.1

authorizes that blatant disregard of corporate separateness. Under the Act's plain language, a

0:32.0

defendant's profits do not include the profits of separate corporations. A respondent asserted a, quote, collective economic

0:39.3

enterprise, close quote, theory, persuading the courts below to treat petitioner and its

0:43.7

affiliates as a single corporate entity so as to attribute the affiliates' profits to petitioner.

0:48.7

That's classic disregard of the corporate form, yet both respondent and the courts below

0:53.0

disavowed any claim of veil-piercing.

0:56.0

Instead, the Fourth Circuit relied on its notion of equity to justify the single corporate

1:00.9

entity approach. But that assertion of unbounded equitable authority violates the maxim that equity

1:07.1

follows the law, including the best foods presumption of corporate separateness.

1:11.6

It also contradicts the equitable principles that disgorgement is limited to the defendant's

1:16.5

profits, not those of affiliates, and does not allow penalties like the award here.

1:21.9

For precisely those same reasons, respondent fails in its attempt to justify the award

1:26.6

by distorting the just-sum provision.

1:29.7

Starbucks held that the word just in a remedial statute incorporates traditional equitable limits.

1:35.7

So rejection of the Fourth Circuit's rationale, as contrary to equitable principles and the best

...

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