Little Caesar Enterprises, Inc. et al v. Miramar Quick Service Restaurant Corporation et al

Filing 52

PRELIMINARY INJUNCTION ORDER. Signed by District Judge Terrence G. Berg. (AChu)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
2:18-cv-10767

LITTLE CAESAR
ENTERPRISES, INC., et al.,

HON. TERRENCE G. BERG
Plaintiffs,
v.
MIRAMAR QUICK SERVICE
RESTAURANT CORPORATION
et al.,

PRELIMINARY INJUNCTION
ORDER

Defendants.

By Order dated July 16, 2019 (ECF. No. 51), the Court granted the
motion of Plaintiffs Little Caesar Enterprises, Inc. and LC Trademarks,
Inc. for a preliminary injunction against Defendants Miramar Quick
Service Restaurant Corporation, Silon Corporation, Khalid Drihmi, and
Abdel Drihmi. For the reasons set forth in that Order, it is hereby
ORDERED that, until a trial on the merits of this case can be held,1
Defendants are preliminarily enjoined as follows:
1.

Defendants and all persons in active concert or participation

with them shall immediately and fully comply with the post-termination
“The purpose of a preliminary injunction is merely to preserve the relative positions
of the parties until a trial on the merits can be held.” Univ. of Tex. v. Camenisch, 451
U.S. 390, 395 (1981). The findings of fact and legal conclusions made at the
preliminary injunction stage are not binding at a trial on the merits. Id.
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obligations contained in Sections 14 and 15 of the franchise agreements
between them and Plaintiff Little Caesar Enterprises, Inc. Those
obligations include but are not limited to the following:
i.

Defendants and all persons in active concert or

participation with them shall immediately cease operating their former
franchised LITTLE CAESARS restaurants located at 1380 Berlin
Turnpike,
Springfield,

Wethersfield,

Connecticut

Massachusetts

01129;

06109;
394

1762

Middle

Boston

Road,

Turnpike

West,

Manchester, Connecticut 06040; and 306 Farmington Avenue, Hartford,
Connecticut 06105, and shall not directly or indirectly, represent
themselves to the public or hold themselves out as present or former
franchisees of Little Caesar Enterprises, Inc.;
ii.

Defendants and all persons in active concert or

participation with them shall immediately cease using, in any manner
whatsoever: (a) any products or ingredients which incorporate trade
secrets or any confidential methods, procedures, or techniques associated
with the LITTLE CAESARS business system; and (b) Plaintiffs’
proprietary marks and all other proprietary marks and distinctive forms,
slogans, signs, symbols, and devices associated with the LITTLE
CAESARS business system;
iii.

Defendants and all persons in active concert or

participation with them shall make such modifications or alterations to
the premises of their former franchised LITTLE CAESARS restaurants
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(including but not limited to changing signs, color scheme, configuration,
layout, wall tiles, and floor tiles) as may be necessary to distinguish the
appearance of the premises from that of a LITTLE CAESARS restaurant,
and shall make such specific additional changes as Plaintiffs may request
to dissociate the location from the LITTLE CAESARS system;
iv.

Defendants and all persons in active concert or

participation with them shall not use any reproduction, counterfeit copy,
or colorable imitation of Plaintiffs’ proprietary marks in connection with
any other business or the promotion thereof which is likely to cause
confusion, mistake, or deception, or which is likely to dilute the rights of
Plaintiffs or their affiliates in and to the proprietary marks;
v.

Defendants and all persons in active concert or

participation with them shall not use any designation of origin or
representation which falsely suggests or represents an association or
connection with Plaintiffs;
vi.

Defendants and all persons in active concert or

participation with them shall immediately return Plaintiffs’ manuals and
all other documents that contain confidential information relating to the
operation of a LITTLE CAESARS restaurant;
vii.

Commencing on the date of Defendants’ compliance with

this Order, until a trial on the merits of this case is held, Defendants and
all persons in active concert or participation with them shall refrain from
directly or indirectly, for themselves, or through, on behalf of, or in
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conjunction with any other person, persons, or legal entity, owning,
maintaining, advising, operating, engaging in, being employed by,
making loans to, or having any interest in a quick service restaurant,
located in the same Designated Market Area (as defined by Nielsen) of
their former franchised LITTLE CAESARS restaurants, that is engaged
in the sale of pizza, chicken wings, and/or related products; and
viii.

Commencing on the date of Defendants’ compliance with

this Order, until a trial on the merits of this case is held, Defendants and
all persons in active concert or participation with them shall refrain from
directly or indirectly, for themselves, or through, on behalf of, or in
conjunction with any other person, persons, or legal entity, owning,
maintaining, advising, operating, engaging in, being employed by,
making loans to, or having any interest in a quick service restaurant,
located in the same Designated Market Area (as defined by Nielsen) of
any LITTLE CAESARS restaurant, that is engaged in the sale of pizza,
chicken wings, and/or related products
2.

Defendants shall comply with the deidentification checklist

attached hereto as Exhibit A with respect to each of their former
franchised LITTLE CAESARS restaurants.
3.

Defendants shall file with the Court and serve upon Plaintiffs,

within fourteen (14) days after service upon Defendants of this Order, a
report in writing and under oath setting forth in detail the manner and

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form in which Defendants have complied with the preliminary
injunction.
Finally, the Court finds that in light of Plaintiffs’ high likelihood of
success on the merits in this case and its financial wherewithal, no bond
is necessary. See Appalachian Reg’l Healthcare, Inc. v. Coventry Health
& Life Ins. Co., 714 F.3d 424, 431 (6th Cir. 2013) (observing district court
has “broad discretion” in setting bond required as security for
preliminary injunction, including discretion to decide no bond required);
Dunkin’ Donuts Franchised Rests. LLC v. Shrijee Inv., Inc., 08-cv-12836,
2008 WL 5384077, at *9 (E.D. Mich. Dec. 23, 2008) (granting preliminary
injunction to enforce termination of franchisee for nonpayment and
holding franchisor’s “likelihood of success on the merits obviates any need
for a bond.”); Radio One, Inc. v. Wooten, 452 F. Supp. 2d 754, 760 (E.D.
Mich. 2006) (holding no bond required for preliminary injunction where
party receiving injunctive relief did not pose collection risk).
SO ORDERED.
Dated: July 25, 2019

s/Terrence G. Berg
TERRENCE G. BERG
UNITED STATES DISTRICT JUDGE

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Certificate of Service
I hereby certify that this Order was electronically submitted on
July 25, 2019, using the CM/ECF system, which will send notification to
all parties.
s/Amanda Chubb
Case Manager

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EXHIBIT A
STORE DEIDENTIFICATION CHECKLIST
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Remove all exterior LITTLE CAESARS signs
Remove LITTLE CAESARS panel on the monument sign
Remove LITTLE CAESARS materials from the lobby
Remove LITTLE CAESARS front counter panel
Remove all POP materials from the store
Remove all window banners
Remove all LITTLE CAESARS translights from the menu board
Remove all LITTLE CAESARS product descriptions from the
menu board
Remove all LITTLE CAESARS job helpers, time management
guidelines, product prep charts
Remove all LITTLE CAESARS paperwork, forms, applications,
charts
Return all LITTLE CAESARS training materials to Little Caesar
Corporate
Discontinue using all LITTLE CAESARS materials in any
advertising
Remove all LITTLE CAESARS pizza boxes and any LITTLE
CAESARS packaging from the store
Remove all pizza spice, dough mix, and other proprietary food
items from the store
Discontinue the use of any LITTLE CAESARS product
preparation procedures or secret recipes
Remove all LITTLE CAESARS uniforms from the store
Pay off all local vendors
Cancel phone and all yellow page advertisements
Remove all LITTLE CAESARS logos from checks and accounting
paperwork
Take all other action to remove from the store all trademarks and
trade dress associated with LITTLE CAESARS