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Olive v. Gen. Nutrition Ctrs., Inc.
242 Cal. Rptr. 3d 15
Cal. Ct. App. 5th
2018
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Background

  • Jason Olive (model/actor) signed limited releases with GNC for use of his likeness in a 2010 campaign; one release expired and GNC continued using his image without renewed consent. GNC admitted liability under Cal. Civ. Code § 3344 but disputed damages.
  • Olive sued under § 3344 (statutory misappropriation) and unjust enrichment; trial focused on damages because liability was conceded.
  • The jury awarded Olive $213,000 in actual damages and $910,000 for emotional distress, but awarded no disgorgement/restitution and found no malice or fraud. Trial court entered judgment and denied both parties’ motions for prevailing-party attorney fees under § 3344.
  • Olive’s proposed special jury instruction (to shift part of the apportionment burden to GNC) was rejected; Olive’s experts (Weston Anson and Leonard Lyons) on profits/attribution were excluded for being speculative and methodologically unsupported.
  • On appeal, Olive argued instructional error, improper exclusion of experts, and that he should have been deemed the prevailing party for fee purposes; GNC cross-appealed seeking prevailing-party status. Court affirmed judgment and denial of fees.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Jury instruction re: burden to apportion profits under § 3344 Olive: court should instruct jury that defendant must prove portion of revenue not attributable to use of Olive’s likeness (to guide apportionment) GNC: CACI No. 1821 correctly tracks § 3344 placing burden on plaintiff to prove gross revenue attributable to the use; Olive’s proposed wording misstates law Affirmed: court correctly refused Olive’s special instruction; CACI No. 1821 mirrors unambiguous statutory language and Olive’s proposal was legally incorrect/misleading
Proper party/burden to prove profits attributable to use of likeness Olive: a causal-nexus/apportionment instruction was needed; plaintiff should not bear full burden given evidentiary exclusions GNC: § 3344 requires plaintiff to prove gross revenue attributable to the use; defendant proves deductible expenses Held: § 3344 is unambiguous — plaintiff must prove gross revenue attributable to the unauthorized use; defendant proves expenses
Exclusion of experts (Anson, Lyons) on profits/attribution Olive: experts were improperly excluded; their opinions would have supported restitution/restitution calculations GNC: experts’ methodologies were speculative, relied on noncomparable samples, and lacked reliable foundation Held: exclusion affirmed — trial court did not abuse gatekeeping discretion under Sargon; opinions were speculative and relied on unreliable assumptions/data
Prevailing-party status for attorney fees under § 3344 Olive: recovery > $1.1M makes him prevailing party entitled to fees GNC: mixed result; trial court correctly found no prevailing party; alternatively GNC asks to be deemed prevailing Held: affirmed — trial court reasonably exercised discretion under Hsu practical-level test to conclude neither party prevailed given parties’ litigation objectives and mixed results

Key Cases Cited

  • Eng v. Brown, 21 Cal.App.5th 675 (clarifies duty to give correct jury instructions supported by evidence)
  • Torres v. Parkhouse Tire Service, Inc., 26 Cal.4th 995 (instructional language must not add to statute)
  • Bullock v. Philip Morris USA, Inc., 159 Cal.App.4th 655 (trial court may refuse party’s incorrect instruction)
  • Sargon Enterprises, Inc. v. University of Southern California, 55 Cal.4th 747 (trial court gatekeeper role; exclude speculative expert opinion)
  • Cooper v. Takeda Pharmaceuticals America, Inc., 239 Cal.App.4th 555 (expert opinion excluded if speculative or unsupported)
  • Hsu v. Abbara, 9 Cal.4th 863 (practical-level test for prevailing party; courts may find no prevailing party in mixed results)
  • Gilbert v. National Enquirer, Inc., 55 Cal.App.4th 1273 (application of prevailing-party analysis under § 3344)
  • Marina Pacifica Homeowners Assn. v. Southern California Financial Corp., 20 Cal.App.5th 191 (mixed-result fee denial affirmed where award was far less than amount sought)
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Case Details

Case Name: Olive v. Gen. Nutrition Ctrs., Inc.
Court Name: California Court of Appeal, 5th District
Date Published: Dec 27, 2018
Citation: 242 Cal. Rptr. 3d 15
Docket Number: B279490
Court Abbreviation: Cal. Ct. App. 5th