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Callaway Golf Co. v. Dunlop Slazenger

United States District Court for the District of Delaware

August 25, 2005, Decided ; August 25, 2005, Filed

Civil Action No. 01-669 KAJ

Opinion

 [***1716]   [*738] MEMORANDUM OPINION

August 25, 2005

Wilmington, Delaware

JORDAN, District Judge

I. Introduction

This case about false advertising and misappropriation of trade secrets relates to golf ball technology. It was tried to a jury and, on  [***1717]  August 12, 2004, the jury returned a verdict for Callaway Golf Company ("Callaway"), awarding $ 2.2 million on Callaway's false advertising claim. (See Docket Item ["D.I."] 410.) The jury also found in favor of Callaway on the counterclaim filed by Dunlop Slazenger [**2]  ("Dunlop") alleging misappropriation of trade secrets. (Id.) Presently before me are Dunlop's Motion for Judgment as a Matter of Law and/or for a New Trial pursuant to Rule 50 and 59 of the Federal Rules of Civil Procedure (D.I. 434), Dunlop's Motion for Attorney Fees and Costs (D.I. 438), and Callaway's Motion for Attorney Fees and Costs (D.I. 437). As set forth herein, Dunlop's Motion for Judgment as a Matter of Law is granted in part and denied in part.  [*739]  Both Dunlop's and Callaway's Motions for Attorneys Fees and Costs are denied.

II. Background

Because the factual and procedural history of this case is set forth in several prior rulings, see Memorandum Opinion dated May 13, 2004 (D.I. 359), Memorandum Opinion dated May 18, 2004 (D.I. 362), Memorandum Order dated May 18, 2004 (D.I. 360), and Memorandum Order dated May 21, 2004 (D.I. 363), it will not be repeated here.

On August 17, 2004, judgment was entered in favor of Callaway for $ 2.2 million (D.I. 432), based on the August 12, 2004, jury verdict. (D.I. 410.) The jury specifically found that Dunlop had willfully and in bad faith engaged in literally false advertising [**3]  by claiming that its A10 golf ball was "the Longest Ball on Tour." (Id. at 1, 2.) The jury awarded to Callaway $ 1.1 million for "corrective advertising" expenditures and another $ 1.1 million as damages for Dunlop's "unjust enrichment." (Id. at 2, 3.) The jury also found that Callaway had wrongly acquired Dunlop's trade secrets but that Callaway did not use that information. (Id. at 3.) Dunlop seeks to overturn the jury's verdict on the false advertising claim and demands a new trial on the trade secret counterclaims because of "erroneous pre-trial rulings." (D.I. 446 at 8.)

III. Standard of Review

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384 F. Supp. 2d 735 *; 2005 U.S. Dist. LEXIS 18212 **; 76 U.S.P.Q.2D (BNA) 1715 ***; 2005-2 Trade Cas. (CCH) P74,935

CALLAWAY GOLF COMPANY, Plaintiff, v. DUNLOP SLAZENGER, Defendant.

Prior History: Callaway Golf Co. v. Slazenger, 2005 U.S. Dist. LEXIS 38899 (D. Del., Feb. 25, 2005)

CORE TERMS

advertising, golf ball, damages, corrective, ball, attorney's fees, trade secret, willfulness, argues, tests, bad faith, patent, new trial, profits, unjust enrichment, longest, false advertising, matter of law, Lanham Act, misappropriation, present evidence, prevailing party, jury's finding, counterclaim, infringement, literally, Costs, clear and convincing evidence, technology, contends

Civil Procedure, Trials, Judgment as Matter of Law, General Overview, Standards of Review, Substantial Evidence, Judgments, Relief From Judgments, Altering & Amending Judgments, Motions for New Trials, Jury Trials, Jurors, Misconduct, Evidence, Weight & Sufficiency, Business & Corporate Compliance, Federal Unfair Competition Law, Lanham Act, Remedies, Trademark Law, Entertainment Industry Falsity & Performance Misattribution, Trade Dress Protection, Unfair Competition, False Advertising, False Designation of Origin, Elements of False Designation of Origin, Damages, Types of Damages, Corrective Advertising Costs, Profits, Elements of False Advertising, Remedies, Attorney Fees & Expenses, Basis of Recovery, Statutory Awards, Patent Law, Collateral Assessments, Attorney Fees, Costs & Attorney Fees, Claims, Claim Language, Duplication & Multiplicity, Entry of Judgments, Consent Decrees, Dismissal, Voluntary Dismissals, Antitrust & Trade Law, Intellectual Property, Bad Faith, Fraud & Nonuse, Sanctions, Baseless Filings, Pretrial Judgments, Nonsuits, Voluntary Nonsuits, Private Actions, Clayton Act, Infringement Actions, Infringing Acts, Intent & Knowledge, Defenses, Inequitable Conduct, Burdens of Proof, Costs & Attorney Fees, Litigation Costs, Judgment Interest, Prejudgment Interest