Manatt, Phelps & Phillips on Wednesday lost its bid to have the California Supreme Court review a malicious prosecution lawsuit filed against the firm over Franklin Mint's line of Princess Diana collectibles.
Only one justice, Carlos Moreno, would have voted to grant the petition.
In May, a split 2nd District Court of Appeal reinstated the suit. The court in that decision said Manatt had no probable cause to bring trademark dilution or false advertising claims against Franklin on behalf of the firm's clients, the late princess's estate and The Diana, Princess of Wales Memorial Fund.
The ruling in Franklin Mint Co. v. Manatt, Phelps & Phillips, BC285388, reversed now-retired Los Angeles Superior Court Judge Warren Ettinger, who had granted Manatt's motion for nonsuit after a 17-day jury trial.
Franklin Mint sued Manatt and firm partner Mark Lee, claiming that their unsuccessful 1998 lawsuit was a malicious attempt to hurt sales of Diana memorabilia. Franklin Mint settled its claims against Diana's estate and charity trust fund.