Justia U.S. 1st Circuit Court of Appeals Opinion Summaries

The case involves BioPoint, Inc., a life sciences consulting firm, which accused Catapult Staffing, LLC, and Andrew Dickhaut of misappropriating trade secrets, confidential business information, and engaging in unfair trade practices. BioPoint alleged that Catapult, with the help of Dickhaut and Leah Attis (a former BioPoint employee and Dickhaut's fiancée), used BioPoint's proprietary information to recruit candidates and secure business from BioPoint's clients, including Vedanta and Shire/Takeda.The U.S. District Court for the District of Massachusetts handled the initial proceedings. The jury found Catapult liable for misappropriating BioPoint's trade secrets concerning three candidates and two clients, and for tortious interference with BioPoint's business relationship with one candidate. The jury awarded BioPoint $312,000 in lost profits. The judge, in a subsequent bench trial, found Catapult liable for unjust enrichment and violations of the Massachusetts Consumer Protection Law (chapter 93A), awarding BioPoint $5,061,444 in damages, which included treble damages for willful and knowing conduct, as well as costs and attorneys' fees.The United States Court of Appeals for the First Circuit reviewed the case. The court largely affirmed the lower court's findings but reduced the judge's award by $157,068, as it found that BioPoint could not recover both lost profits and unjust enrichment for the same placement. The court also reversed the district court's imposition of joint-and-several liability on Andrew Dickhaut, ruling that he could not be held liable for profits he did not receive. The case was remanded for further proceedings to determine Dickhaut's individual liability. View "BioPoint, Inc. v. Dickhaut" on Justia Law

D'Pergo Custom Guitars, Inc. sued Sweetwater Sound, Inc. for using a photo of D'Pergo's guitar necks on Sweetwater's website. D'Pergo claimed copyright infringement under the Copyright Act, trademark infringement under the Lanham Act, and a violation of the New Hampshire Consumer Protection Act (CPA). The district court granted summary judgment to Sweetwater on the trademark claim and to D'Pergo on the copyright claim. A bench trial found in favor of Sweetwater on the CPA claim, and a jury awarded D'Pergo approximately $75,000 in compensatory damages for the copyright claim but did not award any of Sweetwater's profits.D'Pergo appealed the district court's summary judgment on the trademark claim and the bench trial ruling on the CPA claim. D'Pergo also argued that erroneous jury instructions warranted a reversal of the jury's finding that it was not entitled to recover any of Sweetwater's profits. Sweetwater cross-appealed, challenging the copyright damages based on what it claimed was inadmissible expert testimony.The United States Court of Appeals for the First Circuit affirmed the district court's ruling in favor of Sweetwater on the CPA claim, finding that Sweetwater did not act with the intent required for a CPA violation. However, the court reversed the district court's grant of summary judgment to Sweetwater on the trademark claim, concluding that D'Pergo's evidence created a genuine issue of fact regarding the trademark's secondary meaning and likelihood of confusion.The court also remanded for a new jury trial on the issue of infringing profits for the copyright claim, finding that the district court's jury instruction on the burden of proof for infringing profits overstated D'Pergo's burden. The court affirmed the district court's refusal to give D'Pergo's proposed "commingling" instruction and upheld the actual damages awarded to D'Pergo, rejecting Sweetwater's challenge to the admissibility of the expert testimony. View "D'Pergo Custom Guitars, Inc. v. Sweetwater Sound, Inc." on Justia Law

The case revolves around Robert Nightingale, who owed money to National Grid. The company hired two debt collectors who called Nightingale more than twice over several seven-day periods throughout 2017 and 2018. Nightingale sued National Grid and the debt collectors under the Massachusetts Consumer Protection Act, alleging that the calls invaded his privacy and caused him emotional distress. He also sought to certify a class of Massachusetts residents who had experienced similar invasions of privacy due to excessive calls from the defendants.The case was moved to federal district court, which declined to certify the class, stating that it did not meet the predominance requirement of Federal Rule of Civil Procedure 23(b)(3). The district court also granted summary judgment to the defendants, finding that Nightingale had not demonstrated a cognizable injury under the Massachusetts Consumer Protection Act.The United States Court of Appeals for the First Circuit disagreed with the district court's rulings. The appellate court held that Nightingale had alleged cognizable injuries, vacated the district court's grant of summary judgment, and also vacated the denial of class certification. The case was remanded for further proceedings consistent with the appellate court's opinion. The court found that Nightingale's receipt of unwanted calls constituted a cognizable invasion of privacy, and that his emotional distress was a cognizable injury under the Massachusetts Consumer Protection Act. The court also found that the district court had applied an incorrect legal rule in its class certification analysis. View "Nightingale v. National Grid USA Service Company Inc." on Justia Law

The case involves Nicholas Triantos, who sued various parties, including the law firm that represented Deutsche Bank in the foreclosure sale of his home, and the three partners of the firm. The district court dismissed his suit, and the law firm and its partners then moved for sanctions against Triantos under Federal Rule of Civil Procedure 11. The district court granted the motion and ordered Triantos to pay $10,000 in attorneys' fees and $32.00 in costs. Triantos appealed this order. The United States Court of Appeals for the First Circuit reversed and vacated the order. The court found that the district court had imposed sanctions under Rule 11 without following the rule's procedural requirements. The court explained that the law firm served its motion on Triantos only after the district court had dismissed the case, and it did not meet its obligation under Rule 11's safe-harbor provisions to serve the motion on Triantos twenty-one days prior to filing it with the court. The district court also erred by imposing sanctions without describing in its order the sanctionable conduct or explaining the basis for its decision. View "Triantos v. Guaetta & Benson, LLC" on Justia Law

The First Circuit affirmed the judgment of the district court dismissing Plaintiff's putative class action against McNeil Nutritionals, LLC and Johnson & Johnson Consumer, Inc. challenging certain statements on the packaging of Lactaid products, holding that the district court correctly dismissed the complaint.Plaintiff brought this action claiming that Lactaid's labels violated federal labeling requirements, leading Plaintiff to have been mislead into purchasing Lactaid products, which she claimed were more expensive than other lactase supplements. The district court granted Defendants' second motion to dismiss. The First Circuit affirmed, holding that Plaintiff's claims were impliedly preempted by the statutory enforcement authority of the Food and Drug Administration. View "DiCroce v. McNeil Nutritionals, LLC" on Justia Law

In this appeal arising out of a challenge to Rhode Island's liquor laws the First Circuit affirmed in part and vacated in part the judgment of the district court granting summary judgment for Defendants as to all claims, holding that the district court erred in granting summary judgment as to the constitutionality of the in-state-presence requirement for retailers.Plaintiffs, Rhode Island wine consumers, brought this action alleging that, in violation of the Commerce Clause, Rhode Island consumers are denied access to alcohol deliveries from out-of-state retailers. The district court granted summary judgment for Defendants. The First Circuit vacated the lower judgment in part, holding that the district court erred in entering summary judgment as to the constitutionality of the in-state-presence requirement for retailers and remanded for a fuller consideration of the parties' respective offers of proof. The district court upheld the in-state-presence requirement for retailers. The First Circuit affirmed the judgment in part and vacated it in part and remanded the matter for further proceedings, holding that a discriminatory aspect of the State's version of the "three-tier system" could not be affirmed. View "Anvar v. Dwyer" on Justia Law

The First Circuit affirmed the decision of the district court entering summary judgment in favor of Allstate Insurance Company and dismissing the counterclaims brought by two of Allstate's former agents - James Fougere and Sarah Brody-Isbill - and A Better Insurance Agency, Inc. (ABIA) (collectively, Appellants), holding that there was no error.At issue in the underlying case were spreadsheets that Allstate alleged contained trade secrets misappropriated by Brody-Isbill and Fougere, thus breaching their contracts with Allstate. Allstate filed suit alleging claims for, among other things, breach of contract and trade secrets, violations of the Defend Trade Secrets Act, 28 U.S.C. 1836. Appellants counterclaimed, alleging claims for, inter alia, wrongful interference with contractual relations and violations of Mass. Gen. Laws ch. 93A. The district court granted summary judgment for Allstate and dismissed Appellants' counterclaims. The First Circuit affirmed, holding that the district court (1) did not err in dismissing Appellants' counterclaims; and (2) did not abuse its discretion in granting summary judgment to Allstate on liability for its trade secret and contract claims against Appellants. View "Allstate Insurance Co. v. Fougere" on Justia Law

The First Circuit dismissed the appeal in the underlying putative action removed from Massachusetts state court to the federal district court concerning a motion to compel arbitration, holding that the order was not a final decision and not within an exception that would permit interlocutory review.Plaintiff brought this putative class action alleging that Defendant, a debt collector, alleging violations of Mass. Gen. Laws ch. 93A and 940 Mass. Code Regs. 7.01-.10. Defendant moved to compel arbitration in the state court, relying on an arbitration provision in the service contract between Plaintiff and the holder of the alleged debt Defendant was attempting to collect. The state court denied the motion, after which Defendant removed the case to federal court, where it filed another motion to compel arbitration. The district court treated the motion as a motion for reconsideration of the state court order denying the arbitration and then denied it. The First Circuit dismissed Defendant's appeal, holding that this was an improper interlocutory appeal. View "Powers v. Receivables Performance Management, LLC" on Justia Law

The First Circuit reversed the judgment of the district court granting Defendant's motion to dismiss this lawsuit alleging unfair and deceptive business practices under Massachusetts law by intentionally obfuscating information regarding the sales of Plaintiff's published books, holding that this action was not barred.Plaintiff filed a putative class action complaint against Defendant on behalf of himself and other authors alleging a single count for violation of Mass. Gen. Laws ch. 93A, seeking declaratory and injunctive relief requiring Defendant to disclose its royalty calculation methods and provide reasonable disclosures of royalty-related information. The district court granted Defendant's motion to dismiss, concluding that the choice of law in Plaintiff's publishing agreement mandating that all disputes be resolved according to New York law barred the assertion of a claim arising only under Massachusetts law. The First Circuit reversed, holding that Plaintiff's Chapter 93A claim was not precluded by the choice of law clause before the Court. View "Kleiner v. Cengage Learning Holdings II, Inc." on Justia Law

The First Circuit affirmed in part and reversed in part the judgment of the district court dismissing Plaintiff's amended complaint bringing claims for product disparagement and related torts, holding that some of Plaintiff's claims were sufficiently plausible to warrant further proceedings.Plaintiff, a medical device company that designed and manufactured customized hip and knee replacements, brought this complaint against Aetna, Inc. and its wholly owned subsidiary (collectively, Aetna) alleging state common-law claims for product disparagement, tortious interference with both contractual and advantageous relations, and unfair trade practices, in violation of Mass. Gen. Laws chapter 93A. The district court granted Aetna's motion to dismiss for failure to state a claim. The First Circuit reversed in part, holding that the district court correctly dismissed Plaintiff's claim for tortious interference with contractual relations but erred in dismissing Plaintiff's claim for tortious interference with advantageous relations. View "Conformis, Inc. v. Aetna, Inc." on Justia Law