U.S. Eleventh Circuit - The FindLaw 11th Circuit Court of Appeals Opinion Summaries Blog

April 2017 Archives

Nonparty Not Bound by an Injunction as a Successor in Interest

Company A obtains an injunction against Company B, which sells its assets to Company C. Is Company C bound by the injunction?

The simple answer is "no" because Company C was not in privity with the parties to the A-B injunction. That's the basic rule of ADT v. NorthStar Alarm Systems.

The U.S. Eleventh Circuit Court of Appeals said that NorthStar Alarm Services was not bound by an injunction because it was not in privity with the parties to the injunction. Also, the appeals court said, the company had no notice that there was an injunction against Vision Security when it purchased the company.

"In the absence of a finding that NorthStar knew about the injunction against Vision Security, the district court erred when it ruled that NorthStar was bound by the injunction under a theory of de facto merger," the appellate panel said. "A court cannot bind a party whose 'rights have not been adjudged according to law.'"

State Violated Dairy's Free Speech Right to Advertise 'Skim Milk'

Mooooove over, Florida oranges. All-natural skim milk is about to be a little more famous in the Sunshine State.

A federal appeals court has ruled that a Florida dairy producer has a free speech right to advertise its natural "skim milk," even though the state prohibited the description. The U.S. Eleventh Circuit Court of Appeals said the advertisement was truthful and entitled to First Amendment protection.

"The State was unable to show that forbidding the OCheesee Creamery from using the term 'skim milk' was reasonable," the court said.