In a landmark decision Wednesday, the U.S. Supreme Court vacated a nearly $47 million trademark award, ruling that affiliates of real estate firm Dewberry Group Inc. cannot be forced to pay for trademark infringement when they were never named as defendants in the case.
The justices, in a rare unanimous opinion, overturned a Fourth Circuit ruling that had affirmed the award to Dewberry Engineers Inc. The high court determined that federal trademark law does not permit courts to order disgorgement of profits from parties who were never officially sued. The decision sends the case back to the Fourth Circuit, marking a dramatic shift in the long-running legal battle.
A Name Worth Fighting Over: The 18-Year Trademark Dispute
The case stems from a bitter trademark feud dating back to 2006 between two real estate development firms—both using the surname “Dewberry.” A 2007 settlement allowed Dewberry Engineers to keep its registered trademark while Dewberry Group could use the name under specific restrictions.
However, the legal war reignited in 2020 when Dewberry Engineers sued, alleging that Dewberry Group violated the agreement by launching sub-brands such as Dewberry Living, Dewberry Office, and Studio Dewberry. The lawsuit accused Dewberry Group of using these names in marketing materials distributed to its affiliates, leading to alleged brand confusion.
When the courts found that Dewberry Group itself had no money to pay the $47 million judgment, lower courts ruled that its affiliates—though not named as defendants—should be held responsible. That decision set the stage for a major Supreme Court showdown.
