Jonathan Carr v. Mississippi Lottery Corporation

CourtMississippi Supreme Court
DecidedNovember 10, 2022
Docket2021-CA-01304-SCT
StatusPublished

This text of Jonathan Carr v. Mississippi Lottery Corporation (Jonathan Carr v. Mississippi Lottery Corporation) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jonathan Carr v. Mississippi Lottery Corporation, (Mich. 2022).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI

NO. 2021-CA-01304-SCT

JONATHAN CARR

v.

MISSISSIPPI LOTTERY CORPORATION

DATE OF JUDGMENT: 07/26/2021 TRIAL JUDGE: HON. RANDI PERESICH MUELLER TRIAL COURT ATTORNEYS: DEIDRA J. BASSI BRETT W. ROBINSON CHRISTOPHER B. McDANIEL BRYAN C. SAWYERS JONATHAN P. DYAL R. MARK ALEXANDER, JR. COURT FROM WHICH APPEALED: HARRISON COUNTY CIRCUIT COURT ATTORNEYS FOR APPELLANT: CHRISTOPHER B. McDANIEL BRETT W. ROBINSON ATTORNEYS FOR APPELLEE: BRYAN C. SAWYERS R. MARK ALEXANDER, JR. JONATHAN P. DYAL NATURE OF THE CASE: CIVIL - OTHER DISPOSITION: AFFIRMED - 11/10/2022 MOTION FOR REHEARING FILED: MANDATE ISSUED:

BEFORE RANDOLPH, C.J., COLEMAN AND CHAMBERLIN, JJ.

CHAMBERLIN, JUSTICE, FOR THE COURT:

¶1. This case presents an issue of first impression that asks this Court to interpret and

apply the federal Anticybersquatting Consumer Protection Act (ACPA). 15 U.S.C. §

1125(d). Jonathan Carr registered five domain names that included variations of the

identifying marks of the Mississippi Lottery Corporation (MLC). After an unfavorable decision from a national arbitration board, Carr brought a reverse domain name hijacking

claim in the Harrison County Circuit Court against the MLC, which countersued for

cybersquatting. This Court dismissed Carr’s first appeal to this Court in this case for lack of

a final appealable judgment. Carr v. Miss. Lottery Corp., 314 So. 3d 108, 112 (Miss. 2021).

Carr now appeals the trial judge’s Order Granting and Denying Motions for Injunctive

Relief, Order on Motion for New Trial, or In the Alternative, Motion for a Trial By Jury, and

Order on Motion for New Trial and/or In the Alternative, to Alter or Amend the Judgment.

After a careful review of federal and state law, this Court affirms the decisions of the trial

court on all issues.

FACTS AND PROCEDURAL HISTORY

¶2. Starting on December 30, 2017, and ending on August 7, 2018, Jonathan Carr

registered with GoDaddy.com the following five domain names: mslottery.com,

mississippilottery.com, mslottery.us, mississippilottery.us and mississippilottery.org.

¶3. On August 31, 2018, the creation of a Mississippi lottery was approved by the

governor. See S.B. 2001, 1st Extraordinary Sess., 2018 Miss. Laws ch. 2. On October 19,

2018, the governor appointed five members to the board of directors for the Mississippi

Lottery Corporation as required by Mississippi Code Section 27-115-9 (Supp. 2022). The

MLC applied for federal trademarks with the United States Patent and Trademark Office

(USPTO) on March 11, 2019, and obtained state trademarks for “Mississippi Lottery

Corporation” and “Mississippi Lottery” on March 19, 2019, from the Mississippi secretary

of state.

2 ¶4. On March 4, 2019, Carr contacted Lucien Smith, an attorney at the firm representing

the MLC, via text message, asking Lucien Smith to call him. On April 3, 2019, Bill Smith,

another attorney at the firm representing the MLC, contacted Carr at the request of Lucien

Smith. Over the course of the conversation between Bill Smith and Carr, the sale of Carr’s

domain names was discussed. Carr contends in his affidavit that Bill Smith initiated the

discussion regarding the purchase of the domain names and pressured him during the

conversation to the point that he became extremely uncomfortable and wished to contact his

attorney. Bill Smith avers in his affidavit that Carr stated that he “foresaw the need for a

lottery website for the State of Mississippi and, following research and as an investment,

registered over 100 variations of Mississippi Lottery-related domain names” which he

believed had great value. Bill Smith contends that when he offered to pay Carr a reasonable

amount for the domain names, Carr stated that he wished to contact counsel. Scott Andress,

another attorney representing the MLC, sat in on the call with Carr and took notes during the

conversation that support Bill Smith’s recollection of the call.

¶5. On April 9, 2019, attorney Robert Deming contacted Bill Smith on behalf of Carr to

discuss the sale of the domain names. Carr does not dispute that Deming called Bill Smith

on his behalf.

¶6. On May 10, 2019, the MLC filed a domain name dispute complaint with the National

Arbitration Forum (NAF) under the Uniform Domain Name Dispute Resolution Policy

(UDRP). Before service of the NAF complaint was completed, Carr filed a business name

reservation with the Mississippi secretary of state on May 16, 2019, for a for-profit business

3 under the name Mississippi Lottery Corporation. On July 15, 2019, the NAF entered its

order in favor of the MLC, which required Carr to transfer ownership of all five domain

names to the MLC.

¶7. Under the UDRP, Carr had ten days after the arbitration decision to file a lawsuit that

would stay the arbitrator’s ruling pending the outcome of the case and prevent the transfer

of the domain names to the MLC. UDRP 4k, icann.org/resources/pages/policy-2012-02-25-

en (adopted Aug. 26, 1999). Carr timely filed suit in the Harrison County Circuit Court

seeking to prevent the enforcement of the NAF order. Carr claimed that the MLC was

reverse domain-name hijacking his domain names and asked the court for declaratory and

injunctive relief from the NAF order. See 15 U.S.C. § 1114(2)(D)(v). The MLC countersued

for breach of the domain-name registration agreement; cyberpiracy under the ACPA; false

designation of origin; trademark infringement and negligence per se under Mississippi Code

Section 97-33-33 (Rev. 2020). The MLC asked the court for statutory damages up to

$100,000, actual damages, costs, attorneys’ fees and preliminary and permanent injunctions.

The MLC and Carr both filed motions for a preliminary injunction seeking relief under the

ACPA.

¶8. On October 22, 2019, the court held a hearing on the motions for preliminary

injunction. Due to the short time period before the MLC planned to launch ticket sales on

November 25, 2019, the hearing was consolidated into a trial on the merits under Mississippi

Rule of Civil Procedure 65(a)(2). Carr’s counsel stated on record that he agreed that time

was of the essence and would defer to the court’s judgment on whether consolidation was

4 necessary but wanted to ensure that Carr was not waiving his right to a jury trial. The trial

court noted that consolidation was limited to the parties claims for injunctive relief and

assured Carr’s counsel that Carr was not waiving his right to a trial by jury.

¶9. On November 8, 2019, the trial court entered a permanent injunction order in favor

of the MLC, finding that the MLC “had established the criteria under the ACPA and

Mississippi law warranting injunctive relief.” The order required Carr to transfer ownership

of the five domain names within seven days of entry of the order; refrain from commercial

use of the term “Mississippi Lottery” or any variation thereof and withdraw his name

reservation with the secretary of state. Carr’s motion for preliminary injunction was denied

as moot.

¶10. Carr timely filed a motion for a new trial, which was denied on February 21, 2020.

He then appealed to this Court on March 16, 2020. This Court dismissed the appeal upon

finding that, according to “Rule 54(b), both the November 8, 2019 order and the February

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