Colonial Downs sued over Strawberry Hill Races name
New owners of the Strawberry Hill Races name are suing Colonial Downs over what they allege to be trademark infringement, unfair competition, and false advertising on the part of the New Kent County racetrack’s owners.
Counsel for Colonial Downs is expected to file a response this week. That response could be in the form of a demurrer, which basically states the lawsuit lacks merit and the plaintiffs have no case.
The lawsuit stems from Colonial Downs’ use of the Strawberry Hill name during a steeplechase event last June 2 and racetrack officials’ effort since to schedule a similar event, dubbed the Dogwood Classic, for next April 6.
Lawyers working for plaintiffs Mildred J. Dotson and Christie D. Harrell filed suit on Nov. 13 in federal district court in Richmond. Named as defendants are Colonial Downs Holdings Inc., Colonial Downs LP, Stansley Racing Corporation, and Colonial Downs LLC.
The plaintiffs are requesting a jury trial and asking for court orders requiring the defendants to give up any and all profits earned from using the Strawberry Hill name, notably during the June 2 event, and pay “treble” damages to be determined at trial. They are further asking for a permanent injunction barring the defendants from employing the Strawberry Hill name.
The plaintiffs, who are mother and daughter, bought the Strawberry Hill name for $30,510 last May 24 when assets for the bankrupt former owner, State Fair of Virginia, were auctioned off.
According to a statement of facts in the 21-page lawsuit, State Fair officials filed for federal bankruptcy protection last December. A month later, the same officials formed a partnership with Colonial Holdings to hold the Strawberry Hill Races on June 2 instead of a customary date in April.
State Fair officials had until March 7 to devise a financing plan that would salvage the group’s assets, but officials were unable to comply, thus creditors took over. The action also terminated the partnership agreement with Colonial Holdings.
Negotiations involving track officials and the bankruptcy trustee ensued over a temporary operating license, but to no avail. The plaintiffs, meanwhile, allege that track officials attempted to buy the State Fair assets at auction, but could not match their bid.
The plaintiffs allege that track officials continued to market the June 2 event under the name Strawberry Hill without permission. Plaintiffs mailed a cease and desist letter on May 30. They say track officials failed to respond.
The plaintiffs also allege track officials failed to pay numerous June 2 event vendors, thus damaging the reputation and goodwill of the Strawberry Hill trademark. The suit alleges track officials used the name “to make false promotional representations and to unfairly compete with the plaintiffs.”
For the June 2 event, the suit alleges, track officials falsely represented through advertising that they owned the Strawberry Hill Races name. Thus the public and third parties in the horse racing industry were led to believe “that the defendants’ horseracing event was the same one as conducted for years under the Strawberry Hill Races name, when, in fact, it was not.”
The suit also alleges that track officials used the name “to promote their own business and boost their own reputation.” The Dogwood Classic scheduled for next April is being promoted as a Strawberry Hill-type event but under a new name, the plaintiffs say, thereby stripping them of goodwill associated with the trademark.
Colonial Downs officials had 30 days from the Nov. 13 lawsuit date in which to file a response. Messages left seeking comment from the track’s attorney and track officials were not returned. No trial date has been set.