Larry Pitt & Assocs. v. Lundy Law LLP

294 F. Supp. 3d 329
CourtDistrict Court, E.D. Pennsylvania
DecidedFebruary 15, 2018
DocketCIVIL ACTION NO. 13–2398
StatusPublished
Cited by3 cases

This text of 294 F. Supp. 3d 329 (Larry Pitt & Assocs. v. Lundy Law LLP) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larry Pitt & Assocs. v. Lundy Law LLP, 294 F. Supp. 3d 329 (E.D. Pa. 2018).

Opinion

Rufe, J.

Plaintiff Larry Pitt & Associates and Defendant Lundy Law LLP are Philadelphia-area law firms that advertise for personal injury, social security, and workers' compensation cases. After Lundy filed and then withdrew a trademark infringement lawsuit against Pitt, Pitt filed this suit against Lundy Law and its managing partner, L. Leonard Lundy (collectively, "Lundy"), asserting wrongful use of civil proceedings, false advertising, and trade secret misappropriation. Lundy moves for summary judgment on all claims. For reasons discussed below, Lundy's motion will be granted.

I. BACKGROUND

In Pennsylvania, unlike in many other jurisdictions, an attorney or a law firm is permitted to refer a case to another attorney or law firm and earn a portion of the clients' fees without performing any work on the case, so long as the arrangement is disclosed to the client and the fee is not excessive.1 However, a law firm may not actively advertise in its own name for certain categories of cases for the purpose of referring those cases to other law firms.2 This case requires the Court to determine whether, and under what circumstances, a law firm can obtain relief against such advertising practices by its competitor.

For years, Lundy Law, a personal injury law firm with offices in Philadelphia and surrounding counties in Pennsylvania, New Jersey, and Delaware, has advertised on television, public transit, and other media, using the slogan "Remember this Name" and its mnemonic hotline number 1-800-LUNDYLAW.3 Since at least 2008, Lundy Law's advertisements have solicited workers' compensation and social security disability cases, among other categories of cases.4

Pitt is another Philadelphia-area law firm, which has, for many years, advertised for personal injury, workers' compensation, and social security disability cases.5

*333At some point, Pitt began using the slogan "Remember this Number" in conjunction with its own mnemonic intake number.6 On March 4, 2013, in a decision that set off the current legal battles between the two firms, Lundy Law sued Pitt for trademark infringement, but dismissed the suit voluntarily without prejudice on April 18, 2013.7

Pitt responded by filing this suit, asserting that Lundy Law's trademark suit was a wrongful use of civil proceedings in violation of Pennsylvania's Dragonetti Act.8 Pitt's initial complaint also asserted that various aspects of Lundy Law's advertising campaign violated the Sherman Antitrust Act, the Lanham Act, and Pennsylvania common law prohibitions against tortious interference and unfair competition. After two amendments to the complaint and briefing on two motions to dismiss, the Court dismissed Pitt's Sherman Act and tortious interference claims with prejudice but allowed Pitt to proceed on 1) its false advertising claim under the Lanham Act (Count Five), 2) its common law unfair competition claims based on deceptive marketing and trade secret misappropriation (Count Six); and 3) its Dragonetti claim (Count Eight).9

Pitt's false advertising claim under the Lanham Act and deceptive marketing claim under Pennsylvania unfair competition law are both based on Lundy Law's extensive advertisements for workers' compensation and social security cases, which Lundy Law agreed to refer to certain other law firms in exchange for referral fees. With respect to social security cases, between November 11, 2008 and February 2011, Lundy maintained an agreement with the Indiana-based law firm, Fleschner, Stark, Tanoos & Newlin, under which the two firms would share in the cost of Lundy Law's advertising for social security disability cases in the Philadelphia area, and Lundy Law would refer all of its potential social security disability cases directly to Fleschner in return for referral fees.10 Between March 2011 and October 31, 2013, Lundy Law had a similar referral and advertising agreement with the Pennsylvania-based law firm, Pond Lehocky.11 In 2013, shortly after the filing of this lawsuit, Lundy Law entered into yet another referral agreement with the Carolinas-based law firm of Crumley Roberts, under which Lundy referred most of its potential social security cases to Crumley in exchange for referral fees.12 However, at the same time, Lundy Law engaged a social security attorney, Michele Squires, as part-time "of counsel" to the firm to handle "up to five" social security cases a month.13

With respect to workers' compensation cases, beginning sometime between 2009 and 2012, Lundy Law has maintained a referral agreement with the Law Offices of Lenard A. Cohen, P.C. ("LOLAC"), under which LOLAC subsidizes the cost of Lundy Law's workers' compensation advertisements, and Lundy Law refers all its potential workers' compensation cases in Pennsylvania to LOLAC in exchange for a referral fee.14 However, while LOLAC has remained an independent firm, Lenard A. Cohen himself has been covered under *334Lundy Law's liability insurance policy as "of counsel" to the firm since 2009 and keeps Lundy Law business cards and a Lundy Law email address.15 Since 2012, LOLAC's offices have also been physically located within Lundy Law's office in Philadelphia, and Mr. Cohen has attended Lundy Law attorney meetings and advertising meetings.16

Lundy Law's advertisements throughout this time vary in the specificity with which they solicit social security and workers' compensation cases. Many are banners featuring 1-800-LUNDYLAW in large font with the words "Injury and Disability Lawyers" or "Injury, Disability & Workers' Compensation lawyers," in smaller font above or below the telephone number.17 Some advertisements feature testimonials from purported social security disability or workers compensation clients that they were glad they "remembered the name."18

Some of Lundy Law's television commercials, however, specifically promote Lundy Law's purported services for workers' compensation and social security disability clients. For example, a commercial aired between June 2012 and January 2013 displays the message "Lundy Law gets you the social security benefits you deserve" and features the following statement from Leonard Lundy:

People should always apply for Social Security Disability Benefits. We'll help you through the process. That's what we do ."19

Another commercial aired during the same period features a similar statement from Mr. Lundy:

Social Security benefits are available to people because they have a physical or mental condition that makes it impossible for them to work. It's also available for people who have never worked. It's really a cumbersome process. Our job is to get them the benefits after they've been denied That's what we do .20

As Mr. Leonard speaks, the following messages appear on the screen:

• Denied Social Security benefits?

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Related

CHALEPLIS v. KARLOUTSOS
E.D. Pennsylvania, 2023
Larry Pitt & Assocs. v. Lundy Law, LLP
346 F. Supp. 3d 761 (E.D. Pennsylvania, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
294 F. Supp. 3d 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larry-pitt-assocs-v-lundy-law-llp-paed-2018.