Martin Luther King, Jr. Center for Social Change, Inc. v. American Heritage Products, Inc.

508 F. Supp. 854, 213 U.S.P.Q. (BNA) 540, 1981 U.S. Dist. LEXIS 12147
CourtDistrict Court, N.D. Georgia
DecidedFebruary 20, 1981
DocketCiv. A. No. 80-2253A
StatusPublished
Cited by16 cases

This text of 508 F. Supp. 854 (Martin Luther King, Jr. Center for Social Change, Inc. v. American Heritage Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin Luther King, Jr. Center for Social Change, Inc. v. American Heritage Products, Inc., 508 F. Supp. 854, 213 U.S.P.Q. (BNA) 540, 1981 U.S. Dist. LEXIS 12147 (N.D. Ga. 1981).

Opinion

ORDER

RICHARD C. FREEMAN, District Judge.

Plaintiffs, The Martin Luther King, Jr. Center for Social Change, Inc. (Center), a non-profit corporation, Mrs. Coretta Scott King, Administratrix of the Estate of Dr. Martin Luther King, Jr. (Estate), and Motown Record Corporation, a holder of certain copyrights, seek a preliminary injunction, Rule 65(a), Fed.R.Civ.P., against defendants. They allege, inter alia, that defendant American Heritage Products, Inc. of Franklin, Ohio, is unlawfully manufacturing and selling plastic busts of Dr. King, and marketing the busts using the name of the Center and excerpts from copyrighted speeches of Dr. King in its advertisements and other materials. Plaintiffs seek damages as well as injunctive relief.

Defendant James F. Bolen is the sole proprietor of a business known as B & S Sales, which manufactures and sells various plastic products as funeral accessories. James E. Bolen, who is the son of James F. Bolen, has worked in his father’s business at various times and has often loaned money to his father for use in B & S Sales. Defendant James E. Bolen developed the concept of marketing a plastic bust of Dr. King, and formed a company, B & S Enterprises, to sell the busts, which would be manufactured by B & S Sales. B & S Enterprises was later incorporated in Ohio under the name of American Heritage Products, Inc. in October 1980.

Although Bolen sought the endorsement and participation of the Center in the marketing of the bust, the Center refused Bolen’s offer. Bolen pursued the idea, nevertheless, hiring an artist to prepare a mold, and an agent to handle the promotion of the product. Defendant took out two half-page advertisements in the November and December 1980 issues of Ebony magazine, which purported to offer the bust as “an exclusive memorial” and “an opportunity to support the Martin Luther King, Jr. Center for Social Change.” Plaintiffs’ Exhibits 9a, 9b. The advertisement stated that “a contribution from your order goes to the King Center for Social Change.” Out of the $29.95 purchase price, defendant Bolen testified he set aside 3%, or $.90, as a contribution to the Center.1 The advertisement also [857]*857offered “free” with the purchase of the bust a booklet about the life of Dr. King entitled “A Tribute to Dr. Martin Luther King, Jr.”

In addition to the two advertisements in Ebony, defendant published a brochure or pamphlet (Pamphlet) which was inserted in 80,000 copies of black newspapers across the country. The brochure reiterated what was stated in the magazine advertisements, and also contained photographs of Dr. King and excerpts from his speeches. The brochure promised that each “memorial” (bust) is accompanied by a Certificate of Appreciation “testifying that a contribution has been made to the Martin Luther King, Jr. Center for Social Change.” Plaintiffs’ Exhibits 2, 4.

Plaintiffs originally came before this court on January 12,1981 seeking a temporary restraining order, Rule 65(b), Fed.R. Civ.P. By consent of the parties, a temporary restraining order was entered to remain in effect until February 10, 1981. An evidentiary hearing on plaintiffs’ motion for a preliminary injunction was subsequently held by this court on February 10 and 11, 1981.

The action is currently before the court on defendants’ motion to dismiss the complaint for lack of personal jurisdiction and improper venue, Rules 12(b)(2), (b)(3), plaintiffs’ motion for leave to amend their complaint, Rule 15, and plaintiffs’ motion for a preliminary injunction, Rule 65(a), Fed.R. Civ.P. For the reasons that follow, we will deny defendants’ motion to dismiss, grant plaintiffs’ motion to amend, and grant in part and deny in part plaintiffs’ motion for a preliminary injunction.

I. Motion to Dismiss

The plaintiffs state claims in tort in this diversity action under Georgia Code §§ 35-1010 (unauthorized use of name when soliciting contributions), 106-201 (imitation of name, style, or emblem), 106-503 (false or fraudulent statement in advertising), 106-702 (deceptive trade practices), 106-1201 et seq. (fair business practices act), and 17 U.S.C. § 106 (copyright infringement). All of the named defendants are citizens of Ohio. In order to obtain personal jurisdiction over the defendants, the plaintiffs must invoke Georgia’s long-arm statute, Ga.Code § 24-113.1. That section provides:

A court of this State may exercise personal jurisdiction over any nonresident, or his executor or administrator, as to a cause of action arising from any of the acts, omissions, ownership, use or possession enumerated in this section, in the same manner as if he were a resident of the State, if in person or through an agent, he:
(a) Transacts any business within this State; or
(b) Commits a tortious act or omission within this State, except as to a cause of action for defamation of character arising from the act; or
(c) Commits a tortious injury in this State caused by an act or omission outside this State, if the tortfeasor regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered in this State; or
(d) Owns, uses or possesses any real property situated within this State.

Defendants argue that they do not have the minimum contacts with the forum that are required under Georgia law and constitutional standards of due process to permit this court to exercise jurisdiction over them. See International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945).

Most of the cases cited by defendants construe subsection (a) of the statute. We have held this “transacting business” provision, however, to be inapplicable to tort actions. Scott v. Crescent Tool Co., 296 [858]*858F.Supp. 147, 152-53 (N.D.Ga.1968). Plaintiffs instead rely primarily on subsections (b) and (c). These portions of the Georgia long-arm law have been held to extend Georgia’s assertion of personal jurisdiction “to the maximum limits permitted by due process.” Shellenberger v. Tanner, 138 Ga. App. 399, 227 S.E.2d 266, 273 (1976). See Freeman v. Motor Convoy, 409 F.Supp. 1100, 1106-07 (N.D.Ga.1976). The commission of a negligent act outside the state causing injury within the state may constitute commission of a tortious act within the state. See Coe & Payne Co. v. Wood-Mosaic Corp., 230 Ga. 58, 195 S.E.2d 399 (1973). For subsection (b) to furnish a jurisdictional base for plaintiffs’ claim against the nonresident movants, plaintiffs must show three things:

(1) The nonresident has purposefully done some act or consummated some transaction with or in the forum (but the actual act or omission resulting in the injury here need not have occurred in this state) ....

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Bluebook (online)
508 F. Supp. 854, 213 U.S.P.Q. (BNA) 540, 1981 U.S. Dist. LEXIS 12147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-luther-king-jr-center-for-social-change-inc-v-american-heritage-gand-1981.