The U.S. Supreme Court has declined to hear the appeal of Gary Topolewski, who contested a $36 million sanction imposed on him and several associated companies in a high-stakes trademark dispute. The justices announced their decision on Monday, leaving intact the Ninth Circuit's ruling.

TM $36M Sanction Case : Topolewski's Argument

Topolewski challenged the Ninth Circuit's reliance on the district court's "inherent authority" to issue sanctions for discovery violations. In his March certiorari petition, Topolewski pointed to Supreme Court precedent, arguing that district courts must adhere strictly to Federal Rule of Civil Procedure 37, which provides specific protections against sanctions.

Underlying Case and Sanctions

The original lawsuit was filed by URS Holdings Inc. against Topolewski, four other individuals, and several corporations. URS Holdings, a Fortune 500 company formerly known as AECOM, claimed the defendants attempted to acquire the trademark for Morrison Knudsen, a defunct civil engineering company URS had purchased.

Initially, URS Holdings was awarded $1.8 billion, but the Ninth Circuit reversed this decision, stating that a press release indicating the defendants had secured $1.8 billion in government contracts was insufficient evidence of damages. On remand, the district court imposed $36 million in sanctions on the defendants for failing to produce necessary financial information.

TM $36M Sanction Case : Defense Counsel's Argument

Topolewski's defense contended that the sanctions should not apply to him since he lacked access to the withheld documents. Furthermore, they argued under Rule 37 that he should not be held accountable for another defendant's alleged discovery infractions.

Neither party's counsel provided immediate comments on the Supreme Court's decision, and URS Holdings opted not to respond to Topolewski's petition.

Topolewski is represented by attorneys John Morris and Steven M. Brunolli of Higgs Fletcher & Mack LLP, while URS Holdings is represented by Diana Marie Torres of Kirkland & Ellis LLP.