owner of an Alabama Toyota dealership didn’t violate any laws when he bought several websites that included his competitor’s name.
Another case, involving allegations that the Iranian’s competitor told shoppers the Iranian’s dealership sent money to the Taliban, is still pending.
The September 30 decision said that Shawn Esfahani didn’t violate the Anti-cybersquatting Consumer Protection Act because he didn‘t know he was doing anything wrong, even though it did rule that Esfahani should not have bought more than a dozen website domains that included competitor Bob Tyler’s name.
Tyler, owner of Bob Tyler Toyota, had sued Esfahani, a naturalized U.S. citizen who owns Eastern Shore Toyota, for $1 million, saying Esfahani bought 14 Internet domain names with “Bob Tyler” or other variations of the name with the intent to misdirect people to his Eastern Shore Toyota website.
But on September 29, the Tehran-born car dealer testified that several Bob Tyler domain names, and the names of other local auto dealers, were purchased at the insistence of a third-party contractor hired by his Daphne, Alabama, dealership to increase its Internet car sales. Esfahani said he was led to believe that simply buying the sites didn’t violate the anti-cyber-squatting act. He said he fired the contractor after learning that three of the 14 sites were built.
When the trial at the federal courthouse in Pensacola came to a close, both sides claimed victory. “It was clear … that the jury agreed that using someone else’s name and trademark to do business is not acceptable,” Tyler said. “The verdict made it clear there is a difference between aggressive business practices and breaking the law.”
But Esfahani’s attorney, Nixon Daniel, said his client was the winner. “The jury found there was no violation by Eastern Shore. Period,” he said. “The statute says that it’s not a violation of the statute if you reasonably believe it was lawful.”
Esfahani said he’s relieved that, for now, this step of the legal matter is at an end. “You waste a lot of people’s time and energy on things that could be amicably resolved,” he said. “Bob has done things to make life … difficult for us since we came into town.”
Tyler’s lawyer, Frank Herrera, said he plans to appeal on the grounds that Judge Richard Smoak should not have allowed the jurors to consider whether Esfahani knew he was violating the cybersquatting law. “The jury was allowed to hear what we call ‘empty head/innocent head’ defense,” Herrera said. “It was clear to us that it was erroneous.”
But whether or not the case will go to a higher court on appeal, the two Toyota dealers are in the midst of another legal battle. Esfahani has filed suit against Tyler, claiming that Bob Tyler Toyota employees repeatedly referred to his business as “Middle Eastern Toyota” and “Taliban Toyota;” referred to him and his employees as “terrorists” and accused the dealership of funneling money to terrorists.
Dealer magazine asked Esfahani about the problems Eastern Shore Toyota has been having with Bob Tyler Toyota. “They couldn’t beat my team, so they have resorted to other things that they shouldn’t have. We will have our day in court, and this matter will be resolved by our judicial system. It’s unfortunate, but hopefully our actions have spoken louder than others’ words; we cannot say that it has not affected sales. The customers that know us and have done business with us know better and have been extremely supportive. Regardless of where you come from, all people want to be treated with respect and have a good ‘car-buying experience.‘ I know how hard I have worked to earn the place I have today, that’s why I love this country.”
In March, Esfahani told Dealer magazine why he immigrated to the United States and how he got involved in the car dealership industry. “Following the revolution in Iran in 1979, being a young man [16 years old], I really felt my life could have been in danger. I pleaded with my dad to let me leave and he agreed and organized my departure at the right time—two months before the Iran-Iraq war broke out. There was a mandatory draft in Iran, in which the government could make you go to the front line or wherever they needed you. I did not believe in the revolution or the systematic fundamentalism and theocracy that was taking place, resulting in my leaving the country.”
After leaving, Esfahani spent nearly a year in Spain, and then moved to the United States, where he attended Tulsa University in Oklahoma.
“After my college years, I had to make money to pay for it, so I decided to sell cars in 1985. I found the car business fascinating, and after six months I was the top producer. I moved to south Florida and got a job at a dealership as a salesperson. Then quickly was promoted to sales manager and then general sales manager, eventually leading to the general manager position,” he told Dealer magazine.