Linda D. Eales and Eales & Associates, Inc. v. Environmental Lifestyles, Inc., an Arizona Corporation Michael Shotey

Environmental Lifestyles, an Arizona real estate developer, and its officer Michael Shotey appeal a judgment in favor of the plaintiff, an architect, in this copyright infringement case. The defendants contend that the plaintiffs’ architectural plans were not entitled to copyright protection and that, even if they were, the district court miscalculated actual damages and improperly awarded the plaintiffs lost profits. We affirm.

FACTS AND PROCEEDINGS

Wen-Clay, a homebuilder and real estate developer, hired the California architectural firm of Corbin, Yamafuji and Associates (CY) to prepare construction plans and drawings for model homes and homes for resale, both to be built at a development called “The Greens” near the Gainey Ranch area of Scottsdale, Arizona. After CY prepared a set of plans, Wen-Clay obtained a building permit for the construction of the homes from the Scottsdale government. CY’s plans, however, were designed for construction of homes in California: the plans included features that would make the homes more likely to withstand earthquakes, and there were other indicators that CY did not draw the plans with the idea of building in Arizona in mind. Accordingly,…