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Cambridge Industries has been the subject of numerous legal battles in the past. In one case, it has been the subject of a class-action lawsuit for breach of shareholder’s agreements. But in this case, Cambridge Industries has argued that its counterclaim has merit and should be dismissed with prejudice. In another case, Cambridge Industries sued Leader Industries for breach of its shareholders agreement.
The lawsuit also eludes the ownership issue, arguing that it has an equitable trust and a right to accounting. It also argues that the federal statute of limitations does not apply to the accounting claim and that a state statute of limitations applies. However, the District Court found that the claim is barred by the limitations period imposed under Massachusetts law.
Cambridge’s case hinges on the question of whether the figurines were derivative works of Seemann’s book. Because Goebel and Cambridge are co-owners of the copyright, Cambridge is demanding accounting for the profits Goebel made from the sale of the figurines. Goebel, however, disputes the Cambridge claims and maintains that Goebel did not receive royalties.