Business Disputes

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On February 25, 2025, the United States Supreme Court held that plaintiffs who obtain a preliminary injunction are not eligible for attorney’s fees under 42 U.S.C. § 1988(b) because they do not qualify as “prevailing parties.” See Lackey v. Stinnie, 604 U.S. ___ (2025). Chief Justice Roberts, writing for the Court, explained that obtaining a preliminary injunction does not confer “prevailing party” status under § 1988. The Court reasoned that preliminary injunctions do not provide “enduring judicial relief on the merits.”

This case began in late 2018 when a group of Virginia drivers challenged a Virginia statute that permitted the Virginia Department of Motor Vehicles to suspend the licenses of individuals who failed to pay court fines. The drivers asserted that this statute violated both the Equal Protection Clause and the Due Process Clause “as applied to people who cannot afford to pay due to their modest financial circumstances.” The United States District Court for the District of Virginia granted the drivers a preliminary injunction in December 2018, thereby prohibiting the Virginia Department of Motor Vehicles from suspending licenses for failure to pay court fines.Continue Reading U.S. Supreme Court Decision Prohibits Plaintiff Recovery of Attorney’s Fees After a Preliminary Injunction Win

The makers of popular Peloton stationary indoor cycling equipment successfully defeated trademark infringement claims brought against them because the plaintiff waited too long to file suit, bringing them one step closer to complete domination of the in-home fitness world. A recent ruling in the Central District of California ensures that they can continue to use the Peloton mark to sell their exercise equipment and the dream of the perfect workout solution.

The dispute arose when Move Press, the publisher of cycling publication Peloton Magazine, sued Peloton Interactive, the producer of Peloton cycling equipment and on-demand spin classes, for trademark infringement, federal Lanham Act and California state unfair competition, false advertising, and cancellation of trademark registrations over the use of the term “Peloton.” (“Peloton” refers to the main group or pack of cyclists in a race.) Peloton Interactive countersued for cancellation of Move Press’s trademark registrations and declaratory judgment regarding validity of Move Press’s trademarks, non-dilution, and non-infringing use.Continue Reading Peloton Is Here To Stay: Laches Bars Cycling Magazine’s Delayed Trademark Suit Against Peloton Cycling Equipment

On April 23, 2019, the U.S. Court of Appeals for the Eleventh Circuit affirmed the District Court’s finding that Anastasia, Beverly Hills, Inc., a cosmetics company, established a fair use defense in an infringement action brought by competitor Hard Candy, LLC. Hard Candy originally sued, alleging that Anastasia’s “Gleam Glow Kit” makeup product infringed the Hard Candy trademark. Anastasia’s Gleam Glow Kit is a flip-open makeup palette containing four different shades of facial highlighter, one of which was named “Hard Candy.” The Court of Appeals affirmed the District Court’s finding that (1) there was no likelihood of confusion between Anastasia’s highlighter makeup shade called “hard candy” and the branded makeup of the Hard Candy company; and (2) Anastasia established a descriptive fair use defense against the trademark infringement alleged by Hard Candy.

To prevail on its trademark infringement claim, a plaintiff must establish that a defendant’s use of a mark creates a likelihood of confusion with its trademark. The District Court applied a seven-factor test to determine whether Anastasia’s Gleam Glow Kit created a likelihood of consumer confusion. The Court of Appeals agreed that the “similarity of mark” factor weighed in favor of Anastasia, because while Anastasia uses the same words, all in capital letters (HARD CANDY), the Court must consider the “overall impression created by the use of the mark as a whole, rather than comparing the individual features.”Continue Reading Eleventh Circuit Affirms Finding of Fair Use in “Hard Candy” Makeup Case Based on Manner of Use Analysis