LSR, Inc. t/a Jerry's Seafood v. Satellite Restaurants Inc. Crabcake Factory USA

Filing 10

MEMORANDUM ORDER granting in part 7 Defendant's Motion to Stay with the request for limited discovery denied; and staying this action for 60 days. Signed by Judge Richard D. Bennett on 2/15/2018. (bmhs, Deputy Clerk)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND
LSR, INC. t/a JERRY’S SEAFOOD,
Plaintiff

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v.
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Civil Case No. RDB-17-3722
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SATELLITE RESTAURANTS INC.
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CRABCAKE FACTORY USA,
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Defendant .
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MEMORANDUM ORDER

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The Complaint in this case alleges trademark infringement and unfair competition claims
against Defendant. (ECF No. 1.) On January 8, 2018, Defendant filed the now pending Motion to
Stay (ECF No. 7), in which the Defendant alleges that Plaintiff fraudulently revived its corporate
status, a requirement for standing. (Id. 5 (citing Atlantic Mill & Lumber Realty Co. v. Keefer, 179 Md.
496 (1941).) Defendant specifically identifies three unpaid Maryland tax liens (see Def. Exhibits D-F,
ECF Nos. 7-5 to 7-7), which Plaintiff allegedly concealed when certifying that the corporation had
paid all state and local taxes (see Def. Ex. C, ECF No. 7-4.) Defendant asks this Court to stay these
proceedings and to permit limited discovery on the issue of Plaintiff’s corporate status.
This Court has broad discretion to stay proceedings. See Maryland v. Universal Elections, Inc.,
729 F.3d 370, 375 (4th Cir. 2013). In this case, Plaintiff has failed to address the substance of
Defendant’s challenge, namely that the Articles of Revival do not “conform to State law” as they
were fraudulently obtained. Md. Code, Corps. & Ass’ns § 1-201.1(a)(2). Defendant’s Motion to Stay
(ECF No. 7) is therefore GRANTED IN PART, with the request for limited discovery DENIED.
This Court ORDERS that this action be STAYED for 60 DAYS so that the Defendant may
challenge Plaintiff’s corporate status under state law.
Dated: February 15, 2018

/s/
Richard D. Bennett
United States District Judge