Judge Rejects Plaintiff’s Multi-Million Dollar Damages Claim, Awarding Less than $50,000
Reports out of Florida indicate that a federal judge rejected a US$660 million claim by HH Advertising brought against Sandals Resorts in a hard-fought copyright dispute, instead awarding damages of approximately US$50,000.
Law 360 is today reporting that following a bench trial, the judge awarded US$49,000 to HH Advertising regarding 33 photos and videos but found that over 600 other claimed works don’t qualify for damages.
Sandals lead trial counsel Matthew Walch of Latham & Watkins noted with respect to the Court’s decision: ‘We are extremely pleased with the court’s damages decision and appreciate its careful consideration of the evidence in this matter.’ The Judge based the award in part on her finding that Sandals had acted in good faith when using the copyrighted advertising works at issue after the parties’ relationship ended.
According to the Law 360 report, the two companies worked together before the passing of Sandals Founder the late Butch Stewart. After Stewart passed away in January 2021 and was succeeded by his son, tensions arose. HH demanded in 2023 that Sandals and Beaches stop using its work, according to the suit. The creative works at the heart of this dispute were produced during a long-standing, well-compensated partnership with Sandals, its exclusive marketing agent Unique, and HH Advertising. HH Advertising filed copyright claims based on photography and video materials for which the attorneys argued, full compensation had already been paid.
U.S. District Judge Cecilia Altonaga noted, “Defendants believed they were not infringing — and reasonably so, given the absence of any written agreement containing essential terms or access to the only other party besides Hunter to the oral contract, Butch Stewart.”
She also noted that plaintiffs had failed to bring clear trial evidence about the monetary damages supposedly linkable to the use of the photos and videos on Sandals’ website, “Plaintiff does not even provide generalized gross revenue for SRI Limited … The numbers it submits lack a meaningful connection to the infringement.”
Sandals’ attorney Matthew Walch insists that the defense of the case was about honoring the legacy of the Sandals founder and protecting the very soul of a brand he built from the ground up. That legacy lives on today through the passion of a talented team and the loyalty of returning guests. Sandals’ mission remains unchanged: continuing to deliver exceptional experiences to guests around the world.
Sandals was represented by Matthew Walch of Latham & Watkins LLP and Peter Prieto of Podhurst Orseck PA.
HH Advertising Inc. was represented by Michael Landen and Terri Meyers of Kluger Kaplan Silverman Katzen & Levine PL.
Unique Vacations Inc. was represented by Joseph Norvell of Norvell IP and Cecilia Miranda of Brito PLLC.
