New Procedural Twist in The False Advertising Case That Keeps Going and Going
The Eastern District of Missouri granted a motion to remand in American Ass'n of Orthodontists v. Yellow Book USA, Inc., 2007 WL 1687259 (E.D. Mo. 6/8/07). This is the second round of litigation between these parties. In the first case, the AAO's false advertising claims were dismissed for lack of standing (previously posted 1/10/07).
The AAO has once again sued Yellow Book for listing dentists under the heading "Dentists-Orthodontists." This time, the AAO brought a state court claim alleging violation of Missouri deceptive advertising statutes. The state court removed the case to federal court on the basis of diversity of citizenship jurisdiction, although the AAO primarily seeks an injunction.
The district court remanded the case because Yellow Book's calculations of the value of the injunction were too speculative. The court noted that Yellow Book has a motion to dismiss pending, which must be taken up by the state court on remand. The case will likely be dismissed on grounds of claim preclusion and issue preclusion. It serves as a great example to include state law claims in federal intellectual property lawsuits.
