Dluhos v. Strasberg

321 F.3d 365, 2003 WL 360964
Court of Appeals for the Third Circuit·Decided February 20, 2003·No. 01-3713·Published·Cited by 265 cases

Opinion

OPINION OF THE COURT

ALDISERT, Circuit Judge.

This appeal requires us to decide whether a dispute resolution under the Internet Corporation for Assigned Names and Numbers’ Uniform Domain Name Dispute Resolution Policy (“UDRP”) is entitled to the extremely deferential standard of judicial review set forth in the Federal Arbitration Act (“FAA”), 9 U.S.C. § 10(a)(2)-10(a)(3). After Appellant Eric Dluhos registered the domain name <www.leestrasberg.com> invoking the name of the renowned acting coach, representatives of Lee Strasberg’s widow, his eponymous acting institute and his estate instituted administrative proceedings culminating in a National Arbitration Forum dispute resolution that shifted the domain name from Dluhos to the Strasberg parties. Dluhos simultaneously sought relief in the district court, which applied the FAA standards to the NAF panel’s order and dismissed the complaint. Dluhos appealed, and we now reverse.

Among Appellant’s various contentions, he appeal from the district court’s refusal to vacate an order under the UDRP. Constitutional issues are presented, but we must first decide whether the district court properly chose to review the NAF panel’s decision under the Federal Arbitration Act’s deferential standards for judicial review of arbitration decisions and a separate “manifest disregard for the law” standard, or whether a UDRP dispute resolution proceeding does not qualify as “arbitration” under the FAA and instead falls under broader category of review.

I.

In the district court, Dluhos had filed a complaint against Anna Strasberg, the Estate of Lee Strasberg and the Lee Stras-berg Theatre Institute (the “Strasberg de *367 fendants”); Mark Roesler and CMG Worldwide Inc. (the “CMG defendants”); and Network Solutions, Inc. The court ruled that he failed to state a claim for which relief may be granted. Rule 12(b)(6) Federal Rules of Civil Procedure.

The United States District Court for the District of New Jersey had jurisdiction of the underlying action pursuant to 28 U.S.C. § 1331 based on Appellant’s constitutional claims and his challenge to the constitutionality of the arbitration process 1 brought under 42 U.S.C. § 1983, and his sundry state law claims pursuant to 28 U.S.C. § 1367(a). As will become clear, the court also had jurisdiction under the Anticybersquatting Consumer Protection Act (“ACPA”), 15 U.S.C. § 1114(2)(D)(v). We have appellate jurisdiction pursuant to 28 U.S.C. § 1291.

Pursuant to a Cooperative Agreement with the federal National Science Foundation (NSF), one of the Appellees, Network Solutions, Inc. (NSI), a private entity, is the exclusive provider of Internet domain name registration services to the public. 2 On June 25, 1999, pro se plaintiff Eric Dluhos entered into a domain-name registration agreement with NSI to register the domain name <www.leestrasberg.com>. The registration agreement required Dlu-hos to abide by NSI’s ever-evolving dispute resolution policy, which incorporated the Internet Corporation for Assigned Names and Numbers’ Uniform Domain Name Dispute Resolution Policy as it developed. The UDRP — and thus Dluhos’ agreement with NSI — requires a domain-name registrant to submit to a “mandatory administrative proceeding” before an approved dispute resolution service provider to resolve a third party’s complaint concerning the registration and use of a particular registered domain name. Uniform Domain Name Dispute Resolution Policy 4(a) (Oct. 24, 1999), available at http://www.icann.org/dndr/udrp/policy.htm. The National Arbitration Forum is one such approved provider. See Approved Providers for Uniform Domain Name Dispute Resolution Policy, available at http://www.icann.org/dndr/udrp/approved-providers.htm (listing the National Arbitration Forum as an approved resolution provider).

Anna Strasberg — the widow of actor and acting coach Lee Strasberg — owns and di *368 rects the Lee Strasberg Theatre Institute and serves as the executrix of the Estate of Lee Strasberg. As executrix, she is responsible for Estate-owned trademarks and service marks, which include “The Lee Strasberg Institute” and “Actor by Lee Strasberg.” CMG Worldwide, Inc. represents and manages Internet sites for the Estate, the Institute and Anna Strasberg. CMG maintains an official Web sites for the Institute, the Estate and Anna Stras-berg at <www.strasberg.com>.

Dluhos’ registration of <www.leestras-berg.com> came to the attention of Mark Roesler, CMG’s chief executive officer. In May 2000, Roesler sent four letters to Dluhos, informing him that his use of the domain name <www.leestrasberg.com> violated the Strasberg trademarks and that CMG would take action to have the domain name transferred, potentially through UDRP dispute resolution, if Dlu-hos would not rescind it.

Having heard nothing from Dluhos, CMG submitted a complaint to the National Arbitration Forum on June 2, 2000. The complaint requested a UDRP dispute resolution proceeding and formally disputed Dluhos’ right to use the domain name, alleging that the domain name was “identical or confusingly similar to” a trademark owned by the Estate; that Dluhos had “no rights or legitimate interests” in the name; and that he had registered and used the name “in bad faith.” Dluhos had until June 26, 2000 to respond. Rather than participating in the dispute resolution process to which he had agreed when he registered the domain name with NSI a year earlier, Dluhos submitted a letter of limited appearance to the NAF to explain that he would not submit to dispute resolution because he contested the NAF’s jurisdiction over the matter. He added that he would instead file a complaint in federal court. On June 27, 2000, he did just that. He filed a complaint against the Strasberg defendants and the CMG defendants with the district court challenging the constitutionality of the dispute resolution process.

Three days later on June 30, 2000, a one-member NAF panel issued an order suspending the NAF/UDRP proceeding in light of the pending federal lawsuit. See UDRP § 18 (giving panel “the discretion to decide whether to suspend or terminate the administrative proceeding, or to proceed to a decision” while a lawsuit is pending). Because Dluhos failed to serve properly either the Strasberg defendants or the CMG defendants, CMG formally requested in August 2000 that the NAF lift the suspension order and proceed with UDRP dispute resolution. NAF lifted the order when CMG served notice of its request on Dluhos and paid a $150 fee to remove the suspension order.

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Dluhos v. Strasberg, 321 F.3d 365, 2003 WL 360964 (3d Cir. 2003).

321 F.3d 365 (Dluhos v. Strasberg) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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