Jardine

Brother Records, Inc. (“BRI”) is a California corporation that was formed by four of the original members of the music group “The Beach Boys.” Alan Jardine was an original band member and is a director and shareholder of BRI. In a pri- or federal lawsuit, BRI successfully sued Jardine for trademark infringement. While that action was pending, Jardine filed suit against BRI and its shareholders in California Superior Court, alleging breach of fiduciary duty and related claims. The California Court of Appeal held that Jardine’s suit was not barred as res judicata under state law. BRI then filed a motion in the federal district court for an injunction to prevent Jardine from going forward with his state action. The district court denied BRI’s motion, and BRI now appeals. We affirm because, in the light of the California Court of Appeal’s ruling that res judicata was not a bar to the state action, the district court’s denial of the injunction was not an abuse of discretion.

Background

In 1998, BRI issued a non-exclusive license to Michael Love, an original member of The Beach Boys, to use the band’s trademark. BRI declined, however, to sign a contract authorizing Jardine also to use…