Legal News

Moondoggies Settles With Red Bull for ?Passing Off? Fake Juice

By Dan Slater

With a menu that includes risotto crab cakes, mahi-mahi ceviche and Italian flat-bread — not to mention beer offerings of Fat Tire, Yellowtail and Spaten — San Diego’s Moondoggies seems like a spot we’d like to try the next time we’re in town visiting Aunt and Uncle.

We’ll be careful about the Red Bull, however. Moondoggies, which shares its distinct name with a band and a beach club, has been held in contempt for continuing to “pass off” generic energy drinks as Red Bull to customers, in violation of a permanent injunction that Red Bull North obtained four years ago. “Passing off,” as Earth Times reports, occurs when a customer orders Red Bull, but receives a substitute beverage without being notified of the substitution or given the opportunity to accept or reject the stand-in product.

In 2003, Red Bull filed a suit in federal court against Moondoggies for “passing off” violations. (Click here for the complaint.) Red Bull obtained the permanent injunction against Moondoggies, and Moondoggies paid Red Bull $50,000 to settle the case. But, in May 2007 and July 2007, Red Bull investigators discovered that Moondoggies was again “passing off.” Red Bull immediately asked the court to hold Moondoggies in contempt for violation of the permanent injunction. Red Bull and Moondoggies eventually agreed to a judgment for contempt for an undisclosed amount against Moondoggies.

Over the past year, reports Earth Times, Red Bull has settled similar “passing off” lawsuits with Ft. Lauderdale-based Dicey Riley’s for $75,000, Houston-based Tavern for $150,000 and Orlando-based Roxy Night Club for a confidential amount. In addition, Red Bull won a judgment against Chicago-based Wet nightclub for $679,827.

An e-mail to Moondoggies was not immediately answered.

Full post as published by Law Blog - WSJ.com on July 31, 2008 (boomark / email).