Michael R. Williams v. Green Valley RV Inc et al
Filing
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ORDER DENYING PLAINTIFF'S MOTION FOR PRELIMINARY INJUNCTION 19 by Judge Otis D. Wright, II. For the reasons discussed above, the Court hereby DENIES Plaintiff's Motion for Preliminary Injunction. (lom)
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United States District Court
Central District of California
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MICHAEL R. WILLIAMS, d/b/a
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RVMAX,
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Case No. 8:15-CV-01010-ODW-MRW
ORDER DENYING PLAINTIFF’S
MOTION FOR PRELIMINARY
INJUNCTION [19]
Plaintiff,
v.
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GREEN VALLEY RV, INC. d/b/a RV
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MAX; PAUL SCHILPEROORT; and
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DOES 1–10,
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Defendants.
I.
INTRODUCTION
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Pending before the Court is a Motion for Preliminary Injunction filed by
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Plaintiff Michael R. Williams, d/b/a RVMAX. (ECF No. 19.) Plaintiff seeks to
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preliminarily enjoin Defendants Green Valley RV, Inc., d/b/a RV MAX, and Paul
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Schilperoort (collectively “Defendants”) from conducting business under the trade
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name “RV MAX.” Because Plaintiff cannot prove the likelihood of irreparable harm,
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the Court DENIES Plaintiff’s Motion.
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II.
BACKGROUND
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Plaintiff owns and operates a dealership in Loomis, California that sells used
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recreational vehicles (“RVs”) under the trade name “RVMAX.” (Compl. ¶ 7.) In
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2008, Plaintiff registered the service mark “RVMAX” with the U.S. Patent and
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Trademark Office for use in “dealerships in the field of recreational vehicles.” (Id.)
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Plaintiff allegedly uses the service mark in commerce throughout the California in
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connection with the sale, marketing, advertising, and promotion of his dealership and
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related services. (Id. ¶ 11.) As a result of Plaintiff’s expenditures and efforts to
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promote the service mark, the service mark allegedly represents Plaintiff’s reputation
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and goodwill, and signifies a high quality of service. (Id. ¶ 15.)
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Defendants operate an RV dealership in Colton, California that sells new RVs
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under the trade name “RV MAX.” (Id. ¶ 2.) As a result of Defendants’ similar name,
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Plaintiff has allegedly lost profits and suffered irreparable harm to his goodwill and
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reputation. (Id. ¶ 16.)
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On April 10, 2015, Plaintiff filed the Complaint which raises the following
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causes of action: (1) service mark infringement under both the Lanham Act, 15
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U.S.C. § 1114(a), and California law, Cal. Bus. & Prof. Code § 14245; (2) unfair
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competition and false advertising under both the Lanham Act, 15 U.S.C. § 1125(a),
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and California law, Cal. Bus. & Prof. Code §17500; and (3) cyber-piracy under the
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Lanham Act, 15 U.S.C. § 1125(d). (See Compl. ¶¶ 17–34.) On June 29, 2015,
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Defendants filed an Answer. (ECF No. 15.)
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On July 1, 2015, Plaintiff filed the pending Motion for Preliminary Injunction.
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(ECF No. 19.) The Motion seeks to immediately enjoin Defendants from using the
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name “RV MAX” during the pendency of this litigation. Plaintiff alleges that he
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receives seven phone calls a week from customers, as well as calls from vendors and
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debtors, seeking to reach Defendants’ dealership.
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Defendants filed an Opposition on July 13, 2015 (ECF No. 20), and Plaintiff failed to
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file a timely Reply.1 The Court heard arguments on August 3, 2015.
(Williams Decl. ¶¶ 7–11.)
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Plaintiff’s Reply was filed seven days late and thus will not be considered by the Court. See L.R.
7-10. The Court rejects Defendants’ request for sanctions. (ECF No. 27.) The Court did not need
Defendants’ assistance in identifying dates on a calendar and it is their own fault for spending their
clients’ money on such a request.
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III.
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LEGAL STANDARD
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Federal Rule of Civil Procedure 65 governs the issuance of preliminary
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injunctions. An injunction is an exercise of a court’s equitable authority which should
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not be invoked as a matter of course, but “only after taking into account all of the
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circumstances that bear on the need for prospective relief.” Salazar v. Buono, 559
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U.S. 700, 714 (2010). To obtain a preliminary injunction, the moving party must
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show: (1) a likelihood of success on the merits; (2) a likelihood of irreparable harm to
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the moving party in the absence of preliminary relief; (3) that the balance of the
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equities tips in the moving party’s favor; and (4) that an injunction is in the public
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interest. Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 20 (2008).
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Under the Ninth Circuit’s “sliding scale” approach, the first and third elements
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are to be balanced such that “serious questions” going to the merits and a balance of
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hardships that “tip sharply” in favor of the movant are sufficient for relief so long as
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the other two elements are also met. All/ for the Wild Rockies v. Cottrell, 632 F.3d
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1127, 1134–35 (9th Cir. 2011). A preliminary injunction is “an extraordinary remedy
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that may only be awarded upon a clear showing that the plaintiff is entitled to such
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relief.” Winter, 555 U.S. at 22. The moving party bears the burden of meeting all
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four Winter prongs. DISH Network v. FCC, 653 F.3d 771, 776–77 (9th Cir. 2011).
IV.
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DISCUSSION
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Plaintiff argues that he is entitled to preliminary injunctive relief based on his
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first cause of action for service mark infringement under the Lanham Act, 15 U.S.C.
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§ 1114(a). (Mot. 3–4.) After considering only the second Winter prong, the Court
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determines that Plaintiff failed to carry his burden in demonstrating a preliminary
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injunction is warranted; Plaintiff cannot prove the likelihood of irreparable harm.
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A.
Second Winter Prong: Plaintiff’s Likelihood of Irreparable Harm
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A party seeking a preliminary injunction must produce evidence that
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“irreparable injury is likely in the absence of an injunction.” Winter, 555 U.S. at 22.
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The Ninth Circuit recently expounded on this requirement. In Herb Reed, the court
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recognized that “[e]vidence of loss of control over business reputation and damage to
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goodwill could constitute irreparable harm.” Herb Reed Enters., LLC v. Fla. Entm’t
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Mgmt., Inc., 735 F.3d 1239, 1250 (9th Cir. 2013). However, the court explained that
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evidence that “simply underscores customer confusion” is not enough to prove
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irreparable harm. Id. “Gone are the days when ‘once the plaintiff in an infringement
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action has established a likelihood of confusion, it is originally presumed that the
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plaintiff will suffer irreparable harm if injunctive relief does not issue.’” Id. (quoting
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Rodeo Collection, Ltd. v. W. Seventh, 812 F.2d 1215, 1220 (9th Cir. 1987)). This old
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approach “collapses the likelihood of success and the irreparable harm factors.” Id. at
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1251. The Herb Reed court concluded that actual evidence of likely irreparable harm
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is required, in addition to proof that “legal remedies, such as money damages, are
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inadequate.” Id. A moving party cannot merely produce evidence of “unsupported
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and conclusory statements regarding harm [plaintiff] might suffer.” Id. at 1250.
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Here, Plaintiff presents evidence of customer confusion, such as calls from
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customers, vendors, and debtors seeking to reach Defendants’ dealerships. (Williams
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Decl. ¶¶ 7–11.) Plaintiff argues, in one sentence, that this evidence demonstrates
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irreparable harm because “[a]ny consumer who has less than positive experience with
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the Defendants could unfairly attribute that experience to Plaintiff, which makes it
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extremely difficult for Plaintiff to maintain and restore its goodwill among
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customers.” (Mot. 11.) Plaintiff’s evidence of irreparable harm is nothing more than
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a regurgitation of consumer confusion evidence, which is the exact type of evidence
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explicitly rejected by the Ninth Circuit in Herb Reed. Irreparable harm is no longer
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presumed or proven by a mere showing of consumer confusion. Allowing Plaintiff’s
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evidence of customer confusion as proof of irreparable harm would “collapse[] the
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likelihood of success and the irreparable harm factors.” Herb Reed, 735 F.3d at 1251.
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Plaintiff presents no evidence of actual or likely irreparable harm. Additionally,
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Plaintiff’s
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claim
of
irreparable
harm
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is
pure
speculation.
Plaintiff’s
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claim that he “could” suffer harm is nothing more than an “unsupported and
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conclusory statements regarding harm [Plaintiff] might suffer.” Id. at 1250.
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In a recent trademark infringement case in the Northern District of California,
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the plaintiff claimed that it would suffer irreparable harm if an injunction did not issue
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because the defendant’s actions “caused [the plaintiff] to lose control over [its]
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goodwill and reputation.” Wells Fargo and Co. v. ABD Ins. and Fin. Servs., Inc., No.
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C 12-3856, 2014 WL 4312021, *9 (N.D. Cal. Aug. 28, 2014). The district court,
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relying on Herb Reed, held that this evidence of irreparable harm was “the same type
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of ‘unsupported and conclusory statements regarding harm [plaintiff] might suffer’
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that w[as] rejected in Herb Reed.” Id.
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The rejected evidence in Herb Reed and ABD Insurance is identical to the
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evidence presented by Plaintiff here. Plaintiff relies on only consumer confusion
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evidence and wants the Court to believe that he might suffer damage to his reputation
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or goodwill. While Plaintiff’s only evidence is highly relevant to the first Winter
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prong, it is wholly insufficient for the second Winter prong. Evidence of customer
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confusion without proof of likely irreparable harm is not enough. Plaintiff failed to
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carry the burden of presenting evidence of likely irreparable harm.
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The Court recognizes that the inquiry on the first Winter prong is quite simple.
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The Court must determine whether there is a substantial likelihood of confusion
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between the names “RVMAX” and “RV MAX.” However, the Court cannot reach
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this merits inquiry. Plaintiff failed to carry his burden of proving a required Winter
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prong, and thus it is unnecessary to address any of the remaining three Winter prongs.
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See DISH Network, 653 F.3d at 776–77.
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V.
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CONCLUSION
For the reasons discussed above, the Court hereby DENIES Plaintiff’s Motion
for Preliminary Injunction. (ECF No. 19.)
IT IS SO ORDERED.
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August 6, 2015
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____________________________________
OTIS D. WRIGHT, II
UNITED STATES DISTRICT JUDGE
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