Antitrust Law Daily Wrap Up, ADVERTISING—D. Nev.: Trump loses bid in false advertising claim against local unions, (Aug 9, 2016)

By Michael Menzhuber, J.D., LL.M.

A Lanham Act false advertising claim against local labor unions who were attempting to unionize the Trump Hotel Las Vegas was dismissed by the federal district court in Las Vegas because there were no allegations that the flyers circulated by the labor union, which falsely stated that Donald Trump had stayed in a Las Vegas hotel where the employees were unionized, were made in commercial advertisement or promotion. The court also declined jurisdiction over the state law claim of deceptive trade practices (Trump Ruffin Commercial, LLC v. Local Joint Executive Board Las Vegas, August, 8, 2016, Navarro, G.).

Trump Ruffin Commercial, LLC and Trump Ruffin Tower I LLC, the owners and operators of the Trump Hotel Las Vegas, filed a suit against Local Joint Executive Board Las Vegas, Culinary Workers Union Local 226, and Bartenders Union Local 165 for false advertising under the Lanham Act and deceptive trade practices in violation of Nevada Deceptive Trade Practices. According to the complaint, the defendants, who were labor unions attempting to unionize the Trump Hotel Las Vegas employees, circulated flyers which falsely stated that Donald Trump stayed at the Treasure Island Hotel, where the employees were unionized, after giving a speech at that hotel.

The court noted that a required element of a Lanham Act false advertising claim is that the statement was made in commercial advertisement or promotion. In this case, the plaintiffs’ complaint merely alleged that the statements in the flyers were designed to call attention to the labor dispute and could harm the reputation of the Trump Hotel Las Vegas. Because there were no allegations that the statements in the flyers were commercial advertisements or promotion, the court dismissed the plaintiffs’ Lanham Act false advertising claim.

Furthermore, the court found that the considerations of economy, convenience, fairness, and comity weighed in favor of declining jurisdiction over the plaintiffs’ remaining state law claim of deceptive trade practices. Therefore, the court dismissed the plaintiffs’ state law claim with prejudice.

The case is No. 2:15-cv-01984-GMN-GWF.

Attorneys: Bart A. Lazar (Seyfarth Shaw, LLP) and Jonathan W. Fountain (Lewis Roca Rothgerber Christie LLP) for Trump Ruffin Commercial LLC and Trump Ruffin Tower I. LLC. Kristin L. Martin (McCracken, Stemerman & Holsberry) for Local Joint Executive Board Las Vegas, Culinary Workers Union Local 226 and Bartenders Union Local 165.

Companies: Trump Ruffin Commercial LLC; Trump Ruffin Tower I. LLC; Local Joint Executive Board Las Vegas; Culinary Workers Union Local 226; Bartenders Union Local 165

Cases: Advertising StateUnfairTradePractices NevadaNews