n a decision that strongly endorsed the principle of corporate separateness – where a company’s affiliates are not financially responsible for the legal obligations of their parent – the U.S. Supreme Court unanimously reversed the $47 million award that an appeals court had compelled Dewberry Group Inc. (DGI) to pay to Dewberry Engineers Inc. (DEI) for trademark infringement. The two businesses are unrelated companies in the real estate industry. While the Court’s decision provided little guidance for how the lower court should determine how to disgorge profits from DGI, it did make one thing crystal clear – courts are only permitted to disgorge profits from defendants named in a case.
Please see full publication below for more information.