Court Opinion

ID: 9485852
Source: CourtListenerOpinion
Date Created: 2023-08-05 11:31:57.235838+00
Date Added: 2024-06-11T17:51:24.010344
License: Public Domain

BUTZNER, Senior Circuit Judge,
concurring in- part and dissenting in part:
I concur in the affirmance of summary judgment with respect to the claim based on Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5.
I respectfully dissent from the affirmance of summary judgment with respect to Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), common law fraud, misrepresentation, and breach of the duty of good faith.
Better Business Bureau v. Medical Directors, Inc., 681 F.2d 397 (5th Cir.1982), explains that advertisements that falsely implied that the Better Business Bureau endorsed a weight reduction program were sufficient to raise a claim of “likelihood of confusion” in the minds of the consuming public in violation of Section 43(a) of the Lanham Act. Pointing out that whether a representation presents a likelihood of confusion is a question of fact, the court upheld the grant of a preliminary injunction. 681 F.2d at 400, 403.
ARI’s cause of action under the Lanham Act is similar to the claim asserted by the Better Business Bureau. It contends that Tri-Star falsely represents in its advertising that ARI endorses factual misrepresentations concerning the feasibility of the Comet Ridge project.
Whether Tri-Star’s misleading brochures raise a likelihood of confusion among potential investors presents a question of fact that is unsuitable for disposition by summary judgment.
I cannot accept Tri-Star’s argument that ARI’s common law claims fail because of lack of proof of damages. If ARI were seeking monetary damages, concededly they would be too speculative to sustain the claims. But ARI is not seeking monetary damages. It asserts damage to its name and reputation because Tri-Star has falsely attributed to it endorsement of assumptions about the geology of Comet Ridge that lack a factual basis. Fraudulently inflicted harm to a business’s reputation is sufficient to justify injunctive relief. Cf. Blackwelder Furniture Co. v. Seilig Mfg. Co., 550 F.2d 189, 196-97 (4th Cir.1977).
Because I believe that summary judgment was improvidently granted on the claims that I have mentioned, I would remand the case for further proceedings. If ARI can- prove its allegations, it is entitled to injunctive re*337lief lest the public be hoodwinked and ARI’s name and reputation besmirched.