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Phyllis Schlafly Revocable Trust v. Cori
924 F.3d 1004
8th Cir.
2019
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Background

  • Phyllis Schlafly created Eagle Forum and related trusts (PSRT, ETF, EFELDF); her adult children ran or contested control after a 2016 family split.
  • The "gang of six" removed Eagle Forum president Ed Martin; parallel disputes led to multiple lawsuits in Madison County (Illinois), Southern District of Illinois, St. Louis County probate court, and Eastern District of Missouri.
  • Phyllis Schlafly amended trust instruments in April, May, and August 2016; the August 31 amendment purported to transfer her intellectual property to a royalty trust; she died September 5, 2016.
  • The trusts sued in the Eastern District of Missouri for infringement of Schlafly’s intellectual property and sought TROs/preliminary injunctions to stop the gang of six from using her name, likeness, and Eagle marks; the district court denied relief.
  • The district court subsequently administratively closed (stayed) the Eastern District case pending resolution of related cases, requiring periodic status reports.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether preliminary injunction/TRO was warranted to stop alleged trademark/IP use Trusts: infringement of Schlafly’s marks and name will cause irreparable harm; injunction necessary Gang of six: related proceedings and prior TROs in other forums complicate claims; monetary relief suffices Denied: trusts failed to show irreparable harm or likelihood of success sufficient for relief; delay undermined presumption of irreparable harm
Whether trademark cases still get a presumption of irreparable harm Trusts: presumption applies upon likelihood of confusion Opponents: Winter/eBay require movant to prove likely irreparable harm; delay negates presumption Court: uncertain whether presumption survives, but trusts forfeited it by delaying enforcement actions
Whether district court’s stay was immediately appealable under §1291 Trusts: stay ends litigation or effectively surrenders jurisdiction, so appealable Government/others: stay is temporary, contemplates future proceedings after related cases resolve Dismissed appeal of stay for lack of jurisdiction: stay was temporary and did not end the litigation
Whether collateral-order doctrine allows immediate appeal of the stay Trusts: collateral-order exception applies because stay prevents adjudication Opponents: stay merely delays merits and contemplates further proceedings Court: collateral-order doctrine inapplicable because stay only delayed proceedings, not refused adjudication

Key Cases Cited

  • Barrett v. Claycomb, 705 F.3d 315 (8th Cir. 2013) (standard of review for denial of preliminary injunction)
  • Dataphase Sys., Inc. v. C L Sys., Inc., 640 F.2d 109 (8th Cir. 1981) (four-factor test for preliminary injunction)
  • Gen. Motors Corp. v. Harry Brown’s, LLC, 563 F.3d 312 (8th Cir. 2009) (irreparable harm and adequacy of legal remedies)
  • Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7 (2008) (movant must show likely irreparable injury absent injunction)
  • eBay Inc. v. MercExchange, LLC, 547 U.S. 388 (2006) (no automatic injunction rule in patent cases; equitable inquiry required)
  • Hubbard Feeds, Inc. v. Animal Feed Supplement, Inc., 182 F.3d 598 (8th Cir. 1999) (delay can negate irreparable-harm presumption in trademark cases)
  • Novus Franchising, Inc. v. Dawson, 725 F.3d 885 (8th Cir. 2013) (delay vitiates force of irreparable-harm allegations)
  • Cottrell v. Duke, 737 F.3d 1238 (8th Cir. 2013) (when stays are tantamount to dismissal and appealable)
  • Kreditverein der Bank Austria Creditanstalt fur Niederosterreich und Bergenland v. Nejezchleba, 477 F.3d 942 (8th Cir. 2007) (stay finality depends on substance and district court intent)
  • Moses H. Cone Mem. Hosp. v. Mercury Constr. Corp., 460 U.S. 1 (1983) (stay/surrender of jurisdiction considerations)
Read the full case

Case Details

Case Name: Phyllis Schlafly Revocable Trust v. Cori
Court Name: Court of Appeals for the Eighth Circuit
Date Published: May 22, 2019
Citation: 924 F.3d 1004
Docket Number: 17-2115; 17-3761
Court Abbreviation: 8th Cir.