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Manatt Settles Malicious Prosecution Suit for $25 Million
Ending 13 years of litigation, Manatt, Phelps & Phillips has agreed to pay $25 million in damages to Los Angeles businessman Stewart Resnick and his wife, Lynda, in a case that began over trademark and advertising claims related to the late Diana Spencer, Princess of Wales.
The Resnicks once owned The Franklin Mint, which produced a commemorative plate, purse, and porcelain doll using the princess's likeness after she was killed in a 1997 car crash in Paris. Manatt and IP partner Mark Lee ' representing Diana's estate and a memorial fund set up in her name (http://www.theworkcontinues.org/) ' sued The Franklin Mint for trademark dilution and false advertising, claiming that their client's likeness had been used without permission to market memorabilia.
Former federal district court judge Florence Marie Cooper of the Central District of California dismissed the case on summary judgment in 2000, calling it 'groundless' and 'unreasonable,' while awarding The Franklin Mint and its attorneys' $2.3 million in legal fees under a provision contained in the Lanham Act. Franklin Mint then sued Manatt, Lee, and Diana's estate and memorial fund for malicious prosecution in 2002, claiming that the litigation was an attempt to hurt the company's Diana-related sales.
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