$120-million Paraiba lawsuit dismissed

by eyetee | November 17, 2008 12:00 am

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A U.S. judge has thrown out a $120-million lawsuit against the American Gem Trade Association (AGTA) and others over the use of the phrase ‘Paraiba tourmaline.’

The order of dismissal with prejudice against Paraiba.com and its owner, David Sherman, bars the plaintiff from re-filing the lawsuit. The case also named 18 of the AGTA’s volunteer directors, the Gemological Institute of America (GIA), and Brazil Imports as defendants.

“We are pleased by the court’s ruling in this case,” said AGTA chief executive officer Douglas K. Hucker. “We felt from the beginning the suit had no merit and the industry organizations had acted appropriately when accepting a widely used trade name.”

In April, Sherman filed a lawsuit in which he claimed only Paraiba tourmaline can be so named as it is exclusively mined in Paraiba, a province of Brazil.

He argued that using the phrase to describe stones produced outside of Brazil, such as Mozambique and Nigeria, diminished the value of the Brazilian variety and caused him significant loss. The AGTA argued the name Paraiba describes not just location, but also a colour variety.

The judge’s ruling came after months of violations by the plaintiff of court orders and rules of discovery, including refusal to share company records with the AGTA.

 

Source URL: https://www.jewellerybusiness.com/news/120-million-paraiba-lawsuit-dismissed/

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