California Punitives by Horvitz & Levy
  • District court cuts punitive damages to $1 in OMG Girlz case

    Law360 reports (subscription required) that U.S. District Judge James Selna reduced a jury’s punitive damages award from $53.6 million to $1 in the long-running infringement case involving MGA Entertainment’s L.O.L. Surprise! OMG dolls.

    Rapper T.I. and his wife singer Tameka “Tiny” Harris sued MGA, claiming the toys infringe on the trade dress of the now-defunct pop group they founded, OMG Girlz. The case has been tried three times. One trial ended in a mistrial, another ended in a defense verdict that was reversed on appeal, and the third ended with a giant verdict: $17.8 million in compensatory damages and $53.6 million in punitive damages.

    MGA filed posttrial motions challenging that verdict. Judge Selna agreed that the plaintiffs failed to prove by clear and convincing evidence that MGA engaged in punishable conduct. “There was no reliable evidence that MGA had any knowledge of the group’s trade dress or desire to use their likeness to create the infringing dolls.”

    Ordinarily, when a plaintiff fails to present sufficient evidence to support an award of punitive damages, the appropriate remedy is to enter judgment in favor of the defendant on that issue. But in this case Judge Selna decided to grant a new trial unless the plaintiffs agreed to accept a reduction of the punitive damages to $1. Of course, they’ll never accept that.

    The granting of a new trial on punitive damages is a huge break for the plaintiffs. Even though they failed to prove their case, they get a second chance. Or in this case, a fourth chance.