Beverage giants squeezed out of brand name rights in juice dispute

Heirs of Hubert Hansen's trust control all rights of publicity related to the fresh juice pioneer, not Coca-Cola Co. nor Monster Energy Co., which bought copyrights and trademarks associated with the brand years ago, a San Diego County judge tentatively ruled.

Superior Court Judge Timothy B. Taylor presided over a week-long bench trial last month that contested the ownership of Hansen's name and likeness. The damages portion of the trial is scheduled to begin before a jury on Jan. 3. Plaintiffs are claiming roughly $14 million in damages and $7 million in legal fees.

Plaintiffs Jeanne E. Hansen, Timothy M. Hansen and Maureen T. Todd, co-trustees of the Hubert Hansen Intellectual Property Trust, sued Monster and Coke for misappropriation of right of publicity after Monster released Hubert's Lemonade in 2010, based on Hubert Hansen's legacy. Hubert Hansen Intellectual Property Trust, et al v. The Coca-Cola Company; Monster Beverage Corporation, et al., 37-2016-00021046-CU-MC-CTL (S.D. Super. Ct., filed June 22, 2016)

Hubert Hansen established his company in the 1930s and died in 1951. During the 1970s, Tim Hansen established a subsidiary called Hansen Foods, which declared bankruptcy and sold its assets in 1988.

In 1992, the Monster Energy Co. acquired rights to market and sell products using the Hansen brand, but those rights didn't include use of the name, image or likeness of Hansen, the lawsuit contended. Coca-Cola bought the brand from Monster along with the lemonade drink in 2015.

In his ruling Tuesday, Taylor said Hansen's right of publicity might be worth the $1 each the heirs were paid for his or her assignment to the trust, and "it may be worth more," but it'll be up to the jury to decide.

Taylor wrote he found the case to be exceptional and required a discovery referee. "Many monetary sanctions orders were requested and an unusual number were made," Taylor wrote.

"Discovery in this case was a charnel house," he added. "The lawyers in this case were so polarized they could not even agree on the simple joint statement of the case required by the Local Rules and the Advance Trial Review Order."

At least seven sanctions were issued jointly and separately during discovery against Coca-Cola's and Monster's lawyers, with fines estimated at more than $150,000, according to court documents. Reasons included refusal to comply with discovery obligations and failure to produce documents.

Shook Hardy & Bacon LLP and Knobbe Martens Olson & Bear LLP represented Coca-Cola and Monster, respectively.

Johnson & Johnson LLP in Beverly Hills represented the plaintiffs. Senior partner Neville L. Johnson, managing partner Douglas L. Johnson, senior counsel Jordanna G. Thigpen and associate Jordan A. Gonzales tried the case. Bassil A. Hamideh, of the Hamideh Firm PC, was also part of the plaintiffs' team.

Neville Johnson said "it was a hard fought case," acknowledging Shook Hardy's notable reputation for vigorously defending large corporations and Monster's well-known record of protecting its marks.

"This result is for a great cause because this isn't only vindicating statutory rights for all heirs of deceased personalities, but rights of families that have this incredible legacy contributing to the state economy and the nation's economy for decades," said Thigpen. Defense attorneys could not be reached for comment Thursday.