US Supreme Court takes up ‘Dewberry’ trademark dispute

12:24 pm Monday, June 24th, 2024

By Blake Brittain

WASHINGTON (Reuters) – The U.S. Supreme Court on Monday agreed to decide a $43 million dispute between two real estate developers – one in Virginia and one in Georgia – over the rights to the “Dewberry” name in a case exploring when courts can award a company’s profits as a remedy for trademark infringement.

The justices took up an appeal by Atlanta-based Dewberry Group of rulings by lower courts in favor of Fairfax, Virginia-based Dewberry Engineers. The court will hear the case in its next term, which begins in October.

Virginia-based U.S. District Judge Liam O’Grady ruled in favor of Dewberry Engineers in 2021 and later awarded it $43 million of Dewberry Group’s profits that he decided stemmed from intentional trademark infringement. The Richmond, Virginia-based 4th U.S. Circuit Court of Appeals in 2023 upheld O’Grady’s decisions.

Engineering firm Dewberry Engineers began operating in the 1950s, later expanding its business to add real-estate development services in the southeastern United States. Real estate developer John Dewberry in 1989 founded Dewberry Group, which provides similar services through several affiliates.

Dewberry Engineers first sued Dewberry Group, then known as Dewberry Capital, for trademark infringement in 2006. The companies settled the case in 2007.

Dewberry Capital changed its name to Dewberry Group in 2017 and began offering services under sub-brands including Dewberry Living, Dewberry Office and Studio Dewberry. Dewberry Engineers sent cease-and-desist letters after Dewberry Group applied for federal trademarks covering the brand names.

Dewberry Engineers sued Dewberry Group again in 2020 for allegedly infringing its trademarks and breaking their settlement agreement.

Dewberry Group told the Supreme Court in February that the lower courts had wrongly held it liable for the actions of affiliates that had not been named in the case.

“Allowing plaintiffs to bulldoze corporate distinctions in this manner threatens broad, harmful consequences,” Dewberry Group told the justices in a filing.

(Reporting by Blake Brittain in Washington; Editing by Will Dunham)