Alligator Co., Inc. v. La Chemise Lacoste Et Al.

Background

A French clothing company sued an American maker of crocodile-logo shirts in Delaware state court seeking declarations and an order to stop alleged trademark misuse. The American company removed the case to federal court. The federal trial court refused to send the case back to state court and also declined to allow an early appeal of that remand decision. After a full six-day trial, the federal court issued an injunction, and the French company appealed and raised the earlier remand question.

Reasoning

The central practical question was whether a party can ask an appeals court to review a federal judge’s refusal to send a removed case back to state court when the party earlier appealed a denial of a preliminary injunction. The Court of Appeals said this later appeal was the first real chance to contest the remand denial and ordered the case sent back. The Supreme Court, however, declined to take the case, so it did not resolve which rule is correct.

Real world impact

Because the high court refused to review the dispute, courts in different regions remain split about when remand complaints can be raised. That uncertainty can mean more litigation, possible duplicative trials, and unpredictability over whether removed cases stay in federal court or return to state court. The practical rule will continue to depend on which federal appeals court handles a removed case.

Dissents or concurrances

Justice White dissented from the denial of review and would have granted the case to resolve the circuit split and prevent wasteful, duplicative litigation.