Ducks Unlimited, Inc. v. Boondux, LLC et al

Filing 78

ORDER ADOPTING 75 Report and Recommendations and GRANTING in part and DENYING in part 59 Motion for Miscellaneous Relief, filed by Ducks Unlimited, Inc. Signed by Judge Samuel H. Mays, Jr on 06/20/16. (Mays, Samuel)

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IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TENNESSEE WESTERN DIVISION DUCKS UNLIMITED, INC., ) ) ) ) ) ) ) ) ) ) Plaintiff, v. BOONDUX, LLC AND CALEB SUTTON, Defendants. No. 14-2885 ORDER Before the Court is Ducks Unlimited’s January 25, 2016 Motion to Enforce Settlement Agreement or, in the Alternative, to Schedule a Judicial Settlement Conference (the “Motion”). Conference and (Motion, ECF No. 59.) Status The Motion was referred to the Magistrate Judge, who issued a Report and Recommendation Unlimited’s agreement. (the “Report”) request to on April enforce the (Report, ECF No. 75.) the Motion to Enforce be denied. 5, 2016, as purported to Ducks settlement The Report recommends that (Id.) No objection has been filed to the Report and the time to do so has passed. Also before the Court is the request that, if the settlement agreement is not enforced, the Court order a judicial settlement conference scheduling order. and/or (Motion, status ECF conference No. 59 at to 5-6.) modify the Boondux responded on February 10, 2016. (Resp., ECF No. 66.) Unlimited replied on February 23, 2016. Ducks (Reply, ECF No. 71.) The Report did not make a recommendation on those requests. For the following reasons, the Report is ADOPTED and the Motion is DENIED in part and GRANTED in part. I. Background The Report sets forth the factual and procedural background of this case in detail. (Report, ECF No. 75.) Unless otherwise stated, the Court adopts the Report’s defined terms. II. Jurisdiction Ducks Unlimited brings suit under the Lanham Act, 15 U.S.C. §§ 1112 and 1125, and the Copyright Act, 17 U.S.C. § 501. The Court has federal question jurisdiction under 28 U.S.C. § 1331. III. Standard of Review A. Report and Recommendation Congress enacted 28 U.S.C. § 636 to relieve the burden on the federal judiciary by permitting the assignment of district court duties to magistrate judges. 237 F.3d States, 598, 490 602 U.S. (6th 858, Cir. See United States v. Curtis, 2001) 869-70 (citing (1989)); Gomez see v. also Peterson, 67 F. App’x 308, 310 (6th Cir. 2003). United Baker v. “A district judge must determine de novo any part of a magistrate judge’s disposition that has been properly objected to.” P. 72(b); 28 U.S.C. § 636(b)(1)(C). 2 After Fed. R. Civ. reviewing the evidence, the court is free to accept, reject, or modify the proposed findings or recommendations of the magistrate judge. 28 U.S.C. § 636(b)(1)(C). The district court is not required to review — under a de novo or any other standard — those aspects of the report and recommendation to which no objection is made. Thomas v. Arn, 474 U.S. 140, 150 (1985). The district court should adopt the findings and rulings of the magistrate judge to which no specific objection is filed. B. Judicial Conference A district court Settlement may order Id. at 151. Conference parties to and/or Status participate in conferences facilitating settlement under Federal Rule of Civil Procedure 16. Local Rules, Fed. R. Civ. P. 16(a)(5);(c)(2)(I). the parties may request a judicial Under the settlement conference “only after they have engaged in and certify to the Court that they have participated in good faith in at least one unsuccessful mediation under the Court’s Plan for Alternative Dispute Resolution or private mediation.” L.R. 16.3(b). The parties may modify the scheduling order for good cause shown and with the court’s consent. Fed. R. Civ. P. 16(b)(4). 3 IV. Analysis A. Report and Recommendation The Magistrate Judge finds that the Motion to Enforce should be denied because “there was no meeting of the minds between the parties as to all material terms” of the purported settlement agreement. enforceable declined (Report, ECF No. 75 at 16.) agreement. to make a (Id. at 17.) The recommendation on There is no Magistrate Ducks Judge Unlimited’s alternative request that the Court order the parties to attend a judicial settlement conference or an in-person status conference because those matters fall within the discretion of the Court. (Id. at 20.) filed within failure to The Report states that any objections must be 14 file days after objections service or of the exceptions Report, within 14 and days that may constitute a waiver of objections, exceptions, and any further appeal. (Id. at 21 (citing 28 U.S.C. § 636(b)(1); Fed. R. Civ. P. 72(b)(2); L.R. 72.1(g)(2)).) Because no party has objected, Arn counsels the Court to adopt the Report in its entirety. Arn, 474 U.S. at 151. Adopting the Report is consistent with the policies underlying § 636, specifically judicial economy and protecting against the “functions of the district court [being] effectively duplicated as both the magistrate and the district court perform identical 4 tasks.” Howard v. Sec’y of Health & Human Servs., 932 F.2d 505, 509 (6th Cir. 1991). For the foregoing reasons, the Report is ADOPTED and the Motion to Enforce is DENIED. B. Judicial Conference If the Settlement settlement Conference agreement is and/or determined Status to be unenforceable, Ducks Unlimited requests that the Court order the parties to participate in a judicial (Motion, ECF No. 59 at 5.) necessary because of settlement conference. It argues that a conference is Boondux’s “abrupt change in position regarding settlement” and to “ensure Defendants are not abusing the settlement process.” (Id.) If the Court declines to hold a settlement conference or the conference is unsuccessful, Ducks Unlimited requests a status conference with counsel and parties present to establish new pretrial and trial deadlines. 5-6.) Boondux does not believe that a judicial (Id. at settlement conference would be productive because of the time the parties have already spent in mediation (Resp., ECF No. 66 at 10.) and settlement negotiations. Boondux does not oppose a status conference and defers to the Court’s judgment about who should be present. (Id.) A judicial settlement conference is not appropriate at this time. Ducks Unlimited’s argument in support of a conference is 5 based on its belief that Boondux has not acted in good faith because it decided not to settle. that argument. The record does not support The Report finds that Boondux was not obligated to settle because no enforceable agreement had been reached. Ducks Unlimited’s arguments for enforcing settlement are undermined by the fact that its December 1, 2015 proposed draft agreement altered several material terms in the November 3, 2015 offer and the fact that the communications between counsel in November 2015 and during the November 18, 2015 status conference with the Court “strongly suggest[] that the parties were still in settlement agreement.” negotiations and had not yet reached (Report, ECF No. 75 at 16-17,19.) a final Ducks Unlimited has not shown that a judicial settlement conference would be productive given that the parties have settlement after months of negotiations. that it no Unlimited’s longer request wants for a to settle. judicial failed to reach a Boondux has stated (Id. at settlement 9.) Ducks conference is DENIED. Both parties agree that a status conference is necessary to modify the scheduling order because settlement negotiations have failed. For good cause shown, the request for conference to modify the scheduling order is GRANTED. a status An in- person conference is not necessary given that past conferences 6 in this case have been conducted by telephone. The Court will contact the parties to schedule a conference. V. Conclusion The Report is ADOPTED and the Motion to Enforce and for a judicial settlement conference is DENIED. The Motion for status conference is GRANTED. So ordered this 20th day of June, 2016. /s/__Samuel H. Mays, Jr. ___ SAMUEL H. MAYS, JR. UNITED STATES DISTRICT JUDGE 7 a

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