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Berry Bad Outcomes: Millions at Stake for Dewberry Group, Inc.
On June 24, 2024, the U.S. Supreme Court (SCOTUS) granted certiorari to decide a $43 million suit between two real estate developers over the name “Dewberry.” This stems from an Aug. 9, 2023, decision by the United States Court of Appeals for the Fourth Circuit which affirmed a lower court ruling that found Atlanta, Georgia-based Dewberry Group, Inc. (DGI) “pervasively breached [prior agreement] over Dewberry Engineers’ objection,” and awarded attorneys’ fees and equitable profit disgorgement. Dewberry Engineers Inc. v. Dewberry Group, Inc., 77 F.4th 265, 294 (4th Cir. 2023). The crux of the case once it reached SCOTUS is the extent to which courts can award the profits, not of the named defendant, but of the defendant’s affiliate for trademark infringement.
The Dispute
Dewberry Engineers Inc. (DEI), a Virginia-based real estate developer, owns federal trademark rights to the DEWBERRY mark. On the heels of years of disputes over the “Dewberry” name, DEI brought suit claiming DGI’s rebranding efforts infringed the DEWBERRY mark and breached a confidential settlement agreement previously reached between DEI and DGI, signed in 2007.
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