Late breaking Lawsuit News

[tranz4mr]

From Lionel's website

Sixth Circuit denies the MTH application for a rehearing of appeal
04/20/2007

Statement from Jerry Calabrese:

 

“Yesterday, the Sixth Circuit Court of Appeals, in Cincinnati, reaffirmed its earlier decision, in favor of Lionel, to vacate the MTH judgment.  In short, MTH had asked the court to rehear Lionel's successful appeal, and the court rejected its request, effectively putting to bed the lawsuit Lionel lost in 2004, that began this long and costly process.  Unfortunately, that doesn't mean that the legal battles between Lionel and MTH are over.  MTH is free to ask for a new trial, and, while we hope that the mediation process in which we are now engaged will lead to a settlement, we're also prepared to do whatever we need to do to prevail.  Thanks again to all of our fans and supporters for your continued support.”

[nblum]

While not a big surprise, it's gratifying to see the legal process come to the right decision, in every respect.

[Kooljock1]

I find the timing of the court's decision ironically humorous. I'd text message the assembled throng in York, PA...but there's that cell phone thing...

Jon

[willpick]

Well, I expected this. However this ends up, the acrimony will never go away. Will MTH go for a new trial? I do think that MTH will do so unless an equitable settlement is reached. I'm hopeful that this will happen soon.

[nblum]

My understanding of the bankruptcy court process is that if Judge Lifland chooses to hold a damage estimation hearing related to MTH's and other creditors' claims against Lionel, the final result is effectively the maximum the creditor (i.e., MTH) will be able to collect.  Thus if the damages are estimated at, let's say $20.87, or $1,000,000, it may be pointless for the creditor to pursue the claim in court, as no law firm will represent you in a long drawn out bitter case with so little potential recovery. 

 

So everything really does hinge on Judge Lifland at this point and the bankruptcy court process.  In a sense, bringing the second case, the patent infringement, into the bankruptcy court may turn out to have been a terrible strategic mistake, because that claim could be swept away with little or no award as well.  He who lives by the lawsuit can just as easily go down in flames by the lawsuit.  I agree that likely the acrimony will outlive the lawsuit.

[ChiefEagles]

OOO!  Mikeyboy is upset, I'm sure.  Hope it gets settled so this will come to a closure.

[Blueberryhill RR]

OOO!  Mikeyboy is upset, I'm sure.  Hope it gets settled so this will come to a closure.

This entire matter is a personal thing.

[tranz4mr]

OOO!  Mikeyboy is upset, I'm sure.  Hope it gets settled so this will come to a closure.

This entire matter is a personal thing.

Hopefully Judge Lifland, the bankrupycy judge, has figured this out too and settles this once and for all.

No wonder Mikey wasn't at York - or Jerry either. 

[dwiemer]

I too wish this would all just go away, but if it doesn't, I have an idea in mind that would be great to see.  While I am no legal expert, and I am sure some lawyer would through it out, but, I would get in front of the jury/judge.  then I would ask "what this case is about is stealing someone else's idea."  Ok, lets see about this, and then I would bring in all original Lionel trains from the beginning and put the MTH versions right next to them and say, on the left, are Lionel trains from 1929, etc. and the ones that look just like them on the right are from MTH made in 2002.  I know about how Lionel and the patent thing, but it would be interesting to see.

dennis

[brianel027]

I find it ironic that a little over a decade ago MTH changed this hobby with product introductions. Now today, I think MTH has almost become irrelevant outside of this lawsuit which affects the whole hobby - not only by the negative public perception by with the unavoidable legal costs which ultimately get passed on to ALL train consumers.

Meanwhile outside the courthouse, a little company called RMT has seen the light and is providing the train market with sorely needed affordable basic low end products that appeal to almost everyone because of their low price, quality and road name selection. The publlisher of OGR didn't think the BEEP would make it. He was wrong, and I was right. The OGR BEEP bears that one out. And the BEEP's are easily upgraded for those who wish. A winning product all the way around. Despite Cyclde Coil's exortations, the future of this hobby lies NOT with the Legacy system, but with affordable, upgradeable starter products that appeal to the broadest spectrum of buyers. RMT seems to have figured out what MTH cannot and to a much lesser degree, Lionel also.

MTH needs to stop with the foolishness and start focusing on these basic starter products which they have long denounced and long ignored. They have some tooling already, they're just not doing anything with it. This is where the future of the hobby lies and if MTH cannot see that, they too will join K-Line as being a page notation in the history of 3-rail trains.

Maybe MTH should let RMT use the tooling and dies to the Rugged Rails cars, the smaller Baatam steamers, the smaller Railking locos like the F-3, SD-45 and the SD90MAC. MTH might be surprised how successful these items could be if they were made right without all the unneccessary unreliable electronic frills and priced right.

[Andrew Falconer]

Based on the comments by brianelO27: 

Mike Wolf should do something serious, so everyone else can have fun.

Put all the Rugged Rails O Gauge proportioned Locomotives and Cars in a separate catalog for people who have very limited space and a very limited budget. Hiding the Rugged Rails items in the big catalog full of big, expensive items is not going to get them noticed by most people. Give Rugged Rails its own website and department in MTH. Make a line for everybody.

Andrew

[DMUinCT]

MTH Mike WAS at York, and he was talking and smiling.

[anjdevil2]

Let it go Mikey....It's for our own good....

And RMT...you go guys, I expect to buy another one, soon!!!  

[tranz4mr]

MTH Mike WAS at York, and he was talking and smiling.

Which days? 

[msacco]

Is saw Mike Wolf on Friday and he was talkative and seemed to be in a good mood.

 

Mike s.

[lionel2]

MTH booth was right next to Lionel booth at York in dealer hall....is that good?

[laz 57]

MTH is on the east corner of the orange hall and Lionel is on the west corner, NOT next to each other.

laz57