Wednesday, January 17, 2007

Sixth Circuit Discusses Reviewability of Summary Judgment Post Jury-Verdict; Reviewable Where Jury Verdict Advisory

Per General Motors Corp. v. Lanard Toys, Inc., 468 F.3d 405 (6th Cir. Oct. 25, 2006):

The district court, in a trademark and trade dress infringement suit filed against Lanard Toys by General Motors Corporation . . . den[ied] Lanard's motion for summary judgment based on the affirmative defenses of laches and estoppel. Lanard now appeals those decisions.

Before we can reach the merits of the laches and estoppel defenses, we must be sure that an appeal of a summary judgment can be heard. After denying Lanard's motion for summary judgment on laches, the district court submitted the question of the laches and estoppel defenses to the jury and the jury rejected Lanard's defenses. We will generally not rule on an appeal of summary judgment if the issue went to trial. Garrison v. Cassens Transport Co., 334 F.3d 528, 537 (6th Cir.2003). However, an exception to that rule exists if the summary judgment was based on a pure question of law rather than on a material issue of facts, in which case this Court may review the summary judgment motion. Paschal v. Flagstar Bank, 295 F.3d 565, 572 (6th Cir.2002). Although the district court did not provide an explanation for why it denied Lanard's motion for summary judgment on laches and estoppel, it subsequently submitted the question to the jury, thereby insinuating that there were questions of fact for the jury to answer. We thus reason from the district court's ruling that its denial of summary judgment was not based on a pure question of law, but on factual disputes over the elements of laches.

Lanard argues that the submission of the question of laches to a jury is irrelevant because the district court did so "in an advisory sense." Because the jury's determination on this issue was only advisory, Lanard argues, there was no jury verdict on the issue of laches and this Court may therefore hear the appeal. Based on this "advisory" jury determination, we agree. While a jury may be used to consider factual disputes in a laches defense, the fact that the jury was used in an advisory manner suggests that our review of the denial of summary judgment is appropriate.

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