Cashmere & Camel Hair Manufacturers Institute v. Saks Fifth Avenue

284 F.3d 302 (1st Cir. 2002)

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Nature of the Case

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Facts

P is a trade association of cashmere manufacturers dedicated to preserving the name and reputation of cashmere as a specialty fiber. Packard (P) is a member of the Institute and a manufacturer of cashmere and cashmere-blend fabric. In 1993, Harve Benard, Ltd. (D) began manufacturing a line of women's blazers that were labeled as containing 70 percent wool, 20 percent nylon, and 10 percent cashmere. Its labels portrayed the blazers as 'A Luxurious Blend of Cashmere and Wool,' 'Cashmere and Wool,' or 'Wool and Cashmere.' Harve Benard, Ltd. (D) sold large quantities of these cashmere-blend garments to retail customers, including Saks Fifth (D). Ps began purchasing random samples of the products and gave them to Professor Kenneth Langley and Dr. Franz-Josef Wortmann, experts in the field of cashmere identification and textile analysis. The experts independently concluded that the garments contained no cashmere. Dr. Wortmann found that approximately 10 to 20% of the fibers were recycled -- that is, reconstituted from the deconstructed and chemically-stripped remnants of previously used or woven garments. Ps filed this suit claiming that Ds falsely advertised their garments in violation of § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), and state common law. The Institute (P) seeks a permanent injunction against any future mislabeling. Packard (P) seeks monetary damages on the theory that it lost sales as a result of the manufacture and sale of the mislabeled garments. The district court dismissed both of Packard's (P) claims for money damages and seemingly dismissed the Institute's (P) request for injunctive relief on its recycled cashmere claim. Ps appealed.