Arthur Rutenberg Homes, Inc. v. Maloney

891 F. Supp. 1560, 36 U.S.P.Q. 2d (BNA) 1336, 1995 U.S. Dist. LEXIS 9586, 1995 WL 413108
CourtDistrict Court, M.D. Florida
DecidedJuly 3, 1995
Docket93-856-CIV-T-23C
StatusPublished
Cited by12 cases

This text of 891 F. Supp. 1560 (Arthur Rutenberg Homes, Inc. v. Maloney) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arthur Rutenberg Homes, Inc. v. Maloney, 891 F. Supp. 1560, 36 U.S.P.Q. 2d (BNA) 1336, 1995 U.S. Dist. LEXIS 9586, 1995 WL 413108 (M.D. Fla. 1995).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

MERRYDAY, District Judge.

This action was commenced by the plaintiffs, Arthur Rutenberg Homes, Inc., (“ARH”) and M. Pete MeNabb, Inc., (“McNABB”) pursuant to 28 U.S.C. § 1338. The plaintiffs assert that the defendants, Dr. Scott Maloney (“MALONEY”), Michael Frketic Construction Management, Inc., (“FRKETIC”) and Marie Bradshaw d/b/a EB’s Drafting Service (“BRADSHAW”), infringed copyrighted architectural drawings and works owned by ARH and licensed to McNABB. The defendants deny infringement.

This nonjury action was tried January 10-13, 1995, and final arguments occurred on February 1, 1995. The evidence featured testimony from several people involved in the pertinent events and from experts retained by each side, as well as floorplans, blueprints, drawings, photographs, and other documentary evidence.

FINDINGS OF FACT

ARH is a franchisor of residential building companies throughout Florida. Each year ARH invests significant sums to create and develop new architectural designs. ARH uses both its internal design department and independent architects. ARH’s policy is to claim promptly and to enforce consistently (indeed, doggedly) copyrights for each protected architectural design.

ARH provides franchisees the right to use the name “Arthur Rutenberg Homes”; a license to use and construct homes in accordance with ARH’s copyrighted architectural designs; and business, financial, and warranty support. During the time pertinent to this action, McNABB was the only ARH franchisee in Manatee County authorized to use ARH’s copyrighted designs. 1

In 1991, ARH’s design department developed a two-story architectural design entitled *1563 “Jacaranda.” In June, 1992, ARH modified the “Jacaranda” design, expanding and reconfiguring the second floor. This emended architectural design is entitled “Jacaranda II.” ARH owns registered copyrights for the architectural drawings and the architectural work (i.e., the tangible embodiment of the design) for both “Jacaranda” and “Jacaranda II.”

In December, 1991, MALONEY visited McNABB’s model center and investigated McNABB’s willingness to construct a two-story home for MALONEY on his property adjoining the Manatee River. Shortly after this initial visit, MeNABB’s sales representative sent MALONEY a copy of the “Jacaranda” elevation and floorplans from ARH’s product manual. MALONEY found “Jacaranda” pleasing and never asked to review another design. However, MALONEY requested customizations to the “Jacaranda” design to accommodate more congenially his family’s needs. McNABB frequently customizes ARH designs for customers.

Between December, 1991, and July, 1992, McNABB and MALONEY worked together to customize the “Jacaranda” design. MA-LONEY met occasionally with MeNABB’s employees, and MALONEY and his wife visited a “Jacaranda” under construction.

During the course of their negotiation, McNABB provided MALONEY numerous documents pertaining to the “Jacaranda” design, including a complete set of blueprints containing specifications for all elements of the “Jacaranda” floorplan, roof, elevations, and electrical and plumbing systems. These documents bear an ARH copyright notice. Also, McNABB entrusted to MALONEY certain modified “Jacaranda” two-line drawings, prepared by McNABB’s draftsperson to include MALONEYs requested customizations. The two-line drawings of MALO-NEYs requested customizations were lost before trial. However, the plaintiffs established that McNABB typically inserts an ARH copyright notice on all two-line drawings. A preponderance of the credible evidence proves sufficiently that the material provided to MALONEY describing the “Jacaranda” and “Jacaranda II” designs, including all two-line drawings, bore an ARH copyright notice.

MALONEYs requested customizations to the “Jacaranda” design included adding a “front-load” garage with the capacity for three cars, relocating the fireplace from the rear wall to the side wall of the leisure room, expanding the dining room, reversing the location of the shower and water closet in the master bath, adding a bedroom and bath to the second floor, and providing access from the additional second floor bedroom to a rear porch.

During their negotiation, McNABB provided MALONEY with various price proposals. Although no construction contract resulted, the parties agree that MALONEY dealt exclusively with McNABB from December, 1991, through at least June, 1992.

In July, 1992, McNABB provided MALO-NEY a reduced copy of a conceptual drawing of the recently developed “Jacaranda II” design. McNABB prepared and provided another two-line drawing, this one depicting MALONEYs requested customizations to the “Jacaranda II” design. (This two-line drawing also was lost before trial.) On August 5, 1992, McNABB presented MALO-NEY with a final price quotation offering to construct the customized “Jacaranda II” design for $277,822.00.

Sometime during these final negotiations with McNABB, MALONEY approached FRKETIC. MALONEY admitted at trial that he showed FRKETIC a two-line drawing by McNABB of a customized “Jacaranda” (the parties contest whether the drawing was “Jacaranda” or “Jacaranda II”) and asked for FRKETIC’s price to build the proposed home. MALONEY told FRKETIC that the two-line drawing was an ARH drawing. FRKETIC declined to price the construction based upon a two-line drawing and insisted on construction plans, for the preparation of which FRKETIC referred MALONEY to BRADSHAW.

Although the date of the initial meeting is disputed, MALONEY met with BRADSHAW sometime after McNABB had provided MALONEY with two-line drawings showing extensive customizations to “Jacaranda.” *1564 (The first documentary evidence of BRADSHAW’S dealings with MALONEY is an August 13, 1992, invoice from BRADSHAW to MALONEY for preliminary drawings.) At this initial meeting, MALONEY provided BRADSHAW with both an ARH brochure and the two-line drawings he had shown to FRKETIC. Again, a dispute persists whether these drawings were “Jacaranda” or “Jacaranda II.” BRADSHAW testified that the McNABB two-line drawings were largely useless to her and that she discarded them quickly. Nonetheless, BRADSHAW admitted that during her initial meeting with MA-LONEY she reviewed (at least briefly) the ARH two-line drawings before preparing preliminary floorplan sketches for the MA-LONEY residence. (At all times, BRADSHAW was acutely aware of ARH’s policy of persistence in claiming copyright protection for its designs and plans.)

BRADSHAWs work yielded an initial set of blueprints, finalized on September 24, 1992. At or about this time, MALONEY telephoned McNABB’s sales representative and informed her that he had secured a builder at a lower price than McNABB’s. McNABB’s sales representative cautioned MALONEY that his home “better not look like the Jacaranda.” Later, after requesting that MALONEY return the “Jacaranda” drawings, McNABB’s sales representative retrieved from MALONEY’s office a set of drawings, which she failed to inspect to determine whether the two-line drawings were included.

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891 F. Supp. 1560, 36 U.S.P.Q. 2d (BNA) 1336, 1995 U.S. Dist. LEXIS 9586, 1995 WL 413108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arthur-rutenberg-homes-inc-v-maloney-flmd-1995.