The Fifth Circuit Court of Appeals has vacated a $1.5 million damages award previously granted to Lewis Brisbois Bisgaard & Smith LLP in a trademark infringement case. The appellate court determined that the district court judge did not adequately explain the basis for the damages under the relevant statutes.
In the original case, Lewis Brisbois alleged that three individuals—Michael Joseph Bitgood, Susan C. Norman, and Bradley B. Beers—willfully infringed upon the firm’s trademark by registering a business under the same name in Texas. The district court found in favor of Lewis Brisbois, awarding $1.5 million in statutory damages and attorney’s fees. However, the defendants contested this decision, arguing that the court had deprived them of their right to a jury trial on the issue of damages and fees.
The Fifth Circuit’s recent opinion supports the defendants’ contention, stating that while the lower court correctly identified liability, it erred in awarding statutory damages without a clear explanation of its reasoning under the Lanham Act. This reversal also affects the attorney’s fees previously awarded, necessitating further proceedings to determine appropriate damages and fees.
This case underscores the importance of detailed judicial reasoning when awarding damages in trademark infringement cases, particularly under the Lanham Act. Legal professionals should note the appellate court’s emphasis on the necessity for clear and thorough explanations to support such awards.