Remedy of Lanham Act Accounting of Profits Distinguishable from Accounting of Profits Under State Contract Law

The court granted plaintiff’s motion to remand and rejected defendants’ contention that plaintiff sought a Lanham Act-provided remedy, an accounting of profits, which conferred the court with subject matter jurisdiction. “⁠[Plaintiff] counters that it does not seek a disgorgement of profits. Instead, it seeks an accounting of profits, which is an available remedy under Texas contract law. Thus, because an accounting is a remedy under Texas contract law it cannot serve as a basis for removal. The Court agrees with [plaintiff]. An accounting of profits is available under Texas contract law either as a suit in equity or, like in the present case, ‘as a particular remedy sought in conjunction with another cause of action.’ . . . Thus, because the remedy [plaintiff] seeks is sanctioned under Texas law, it cannot serve as a basis for federal-question jurisdiction.”

Homevestors of America Inc v. Big State Home Buyers LLC et al, 3-18-cv-00865 (TXND 2018-07-10, Order) (Jane J. Boyle)

2018-07-13T11:52:02+00:00July 13th, 2018|Docket Report, Trademark|