Compulife Software, Inc. v. Rutstein
9:16-cv-80808
S.D. Fla.Jun 29, 2017Background
- Compulife sued Binyomin and David Rutstein alleging direct and contributory copyright infringement, federal and Florida trade secret theft, violation of the Florida Computer Abuse and Data Recovery Act, and unfair competition (Lanham Act, Florida common law, FDUTPA).
- Compulife moved for summary judgment, asserting evidence tied NAAIP and BeyondQuotes (and an email david@naaip.org) to the Rutsteins and showing infringement/theft as of April 2015.
- Defendants produced testimony and declarations that (a) Binyomin was not involved with NAAIP/BeyondQuotes since 2009, (b) David transferred control to Aaron Levy in April 2012 and had no involvement after that, and (c) the david@naaip.org account belonged to Aaron Levy.
- Defendants also denied use of the alias “David Gordon,” denied personal wrongful conduct apart from corporate actors, and stated there was no licensing restriction on the data feed.
- The court found no record evidence of alleged wrongful acts by the Rutsteins personally (or by NAAIP/BeyondQuotes) prior to April 2012; Compulife offered no physical/video evidence to overwhelmingly contradict defendants’ account.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether there is no genuine dispute and Compulife is entitled to summary judgment on all claims | Compulife contends documentary and testimonial evidence proves infringement, trade-secret theft, and other violations by NAAIP/BeyondQuotes controlled by the Rutsteins | Defendants present testimony and declarations creating disputed facts about control, timing, account ownership, and lack of post-2012 involvement | Denied — genuine disputes of material fact exist, so summary judgment inappropriate |
| Whether the david@naaip.org account and alias "David Gordon" link wrongdoing to the Rutsteins | Compulife argues the email/alias tie NAAIP/BeyondQuotes activity to David (and Binyomin) | Defendants say Aaron Levy owned the email, David stopped using it in 2012, and David never used the alias | Denied — factual dispute over identity and account ownership precludes summary judgment |
| Whether alleged wrongful acts occurred before April 2012 | Compulife implied liability as of April 2015; sought summary resolution on earlier conduct | Defendants show no record evidence of wrongdoing by NAAIP/BeyondQuotes or the Rutsteins before April 2012 | Court noted absence of record evidence of pre-April 2012 misconduct; disputes as to post-2012 conduct remain |
| Whether defendants’ testimony is "blatantly contradicted" so court may discredit it on summary judgment | Compulife urges that documentary/testimonial evidence overwhelmingly contradicts defendants | Defendants argue their affidavits/depositions create factual disputes; no physical/video evidence exists to "utterly discredit" their accounts | Court refused to adopt Compulife’s view — without overwhelming physical evidence, credibility disputes create genuine issues of material fact |
Key Cases Cited
- Anderson v. Liberty Lobby, 477 U.S. 242 (1986) (summary judgment standard; genuine dispute materiality)
- Scott v. Harris, 550 U.S. 372 (2007) (video or overwhelming physical evidence can discredit testimony for summary judgment)
- Miccosukee Tribe of Indians of Fla. v. United States, 516 F.3d 1235 (11th Cir. 2008) (definition of genuine dispute)
- Skop v. City of Atlanta, 485 F.3d 1130 (11th Cir. 2007) (court should not weigh conflicting evidence on summary judgment)
- Kesinger ex rel. Estate of Kesinger v. Herrington, 381 F.3d 1243 (11th Cir. 2004) (physical evidence can justify summary judgment when it contradicts testimony)