Kim v. Coach, Inc, et al
Filing
53
ANSWER to 4 Amended Complaint by Coach Services Inc.(Keehnel, Stellman)
THE HONORABLE RICARDO S. MARTINEZ
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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
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GINA KIM, on behalf of a class consisting
of herself and all other persons similarly
situated,
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v.
Plaintiffs, and as to Ms.
Kim, counterclaim
defendant,
NO. 2:11-cv-00214-RSM
COACH SERVICES, INC.’S ANSWER,
DEFENSES, AND AFFIRMATIVE
DEFENSES TO FIRST AMENDED
COMPLAINT
COACH, INC., a Maryland corporation,
and COACH SERVICES, INC., a
Maryland corporation,
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Defendants and, as to
Coach, Inc., counterclaim
plaintiff.
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Pursuant to Federal Rule of Civil Procedure 12(a)(1)(A)(ii), defendant Coach Services,
Inc. (“Coach”) hereby submits its answer to the First Amended Complaint1 (the “Amended
Complaint”) filed by plaintiff Gina Kim on behalf of a putative class consisting of Ms. Kim and
all other Washington residents similarly situated, and filed by plaintiffs Jay Carlson, Carlson
Legal, Christopher Carney, Carney Gillespie & Isitt PLLC, Jason B. Moore, and Van Eyk &
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On March 22, 2011, counsel for Ms. Kim filed a stipulated request for leave to file a second amended complaint.
(Dkt. No. 20.) The Court has not yet entered the second amended complaint. For purposes of Coach’s answer,
defenses, and affirmative defenses, the second amended complaint is identical to the first amended complaint. For
this reason, Coach directs its answer, defenses, and affirmative defenses at whichever complaint is currently
extant.
COACH SERVICES, INC.’S ANSWER, DEFENSES,
DLA Piper LLP (US)
AND AFFIRMATIVE DEFENSES TO FIRST
701 Fifth Avenue, Suite 7000
AMENDED COMPLAINT – 1
Seattle, WA 98104-7044 ● Tel: 206.839.4800
NO. 2:11-CV-00214-RSM
WEST\223567129.1
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Moore, PLLC. Coach’s answer, defenses, and affirmative defenses are based on information
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and knowledge thus far secured by Coach, and Coach reserves the right to amend or
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supplement its answer, defenses, and affirmative defenses based on facts later discovered,
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pleaded, or offered. To the extent that any express or implied allegations in the Amended
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Complaint are not specifically admitted herein, Coach hereby denies any such allegations.
ANSWER TO THE FIRST AMENDED COMPLAINT
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SUMMARY
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Coach denies each and every allegation in plaintiffs’ “Summary,” except to admit that
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its law firm Gibney, Anthony & Flaherty, LLP (“Gibney”) monitors certain items listed for sale
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on eBay, that Gibney alerts eBay when counterfeit Coach products are detected, that Gibney
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delivers communications to sellers when counterfeit Coach products are detected, and that
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Ms. Kim is a former employee of Coach, Inc. Coach specifically denies that it “is trying to
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force all consumers to purchase Coach products” only in Coach’s retail stores. Coach
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specifically denies that it “wantonly accuses consumers of infringing its trademarks . . . .”
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Coach specifically denies that it makes any accusations of counterfeiting “[w]ithout
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investigating the validity of its allegations . . . .” Coach specifically denies that it “fails to
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conduct even a minimally reasonable investigation into its counterfeiting claims . . . .”
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I.
NATURE OF PLAINTIFF’S CLAIMS
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To the extent that this section contains allegations of fact, Coach denies the allegations
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contained therein, except to state that counsel for Coach indicated to counsel for Ms. Kim that
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counsel for Ms. Kim had committed actionable defamation that would be the subject of a claim.
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Coach specifically denies that any threats were made.
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II.
PARTIES
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1.
Coach denies that Ms. Kim is representative of any purported class in this
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matter. As to the remaining allegations in Paragraph 1, Coach lacks sufficient knowledge or
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COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 2
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
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information to form a belief as to the truth of the allegations contained therein and, on that
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basis, denies such allegations.
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2.
Coach denies that the putative class described in Paragraph 2 is valid under
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Fed.R.Civ.P. 23. As to the remaining allegations in Paragraph 2, Coach lacks sufficient
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knowledge or information to form a belief as to the truth of the allegations contained therein
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and, on that basis, denies such allegations.
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3.
Coach admits that Coach, Inc. and Coach Services, Inc. are Maryland
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corporations and that their principal places of business are not in Washington. The meaning of
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the term “extensive” is undefined and, on that basis, Coach denies the remaining allegations in
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Paragraph 3.
4.
Coach denies that counsel for Ms. Kim “have been directly threatened with a
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defamation lawsuit by Coach’s counsel.” As to the remaining allegations in Paragraph 4,
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Coach lacks sufficient knowledge or information to form a belief as to the truth of the
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allegations contained therein and, on that basis, denies such allegations, except to acknowledge
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that Ms. Kim’s lawyers have been made named plaintiffs in this lawsuit.
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III.
JURISDICTION AND VENUE
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1.
Answering Paragraph 1, Coach lacks sufficient knowledge or information to
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form a belief as to the truth of the allegations contained therein and, on that basis, denies such
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allegations.
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2.
Paragraph 2 contains legal conclusions to which no response is necessary. To
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the extent that Paragraph 2 contains allegations of fact, Coach admits that the Amended
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Complaint purports to invoke jurisdiction under 28 U.S.C. §§ 1331, 1332, 1367, and 2201-02.
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3.
Coach admits that its affiliates market and sell trademarked goods in
Washington. Coach denies the remaining allegations in Paragraph 3.
4.
Paragraph 4 contains legal conclusions to which no response is necessary. To
the extent that Paragraph 4 contains allegations of fact, Coach admits that the Amended
COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 3
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
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Complaint purports to invoke venue under 28 U.S.C. §§ 1391(a), (b), & (c).
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IV.
FACTS COMMON TO ALL COUNTS
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1.
Answering Paragraph 1, Coach lacks sufficient knowledge or information to
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form a belief as to the truth of the allegations contained therein and, on that basis, denies such
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allegations.
2.
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Answering Paragraph 2, Coach lacks sufficient knowledge or information to
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form a belief as to the truth of the allegations contained therein and, on that basis, denies such
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allegations.
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1.
1.
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Coach incorporates and realleges the preceding paragraphs as if set forth fully
2.
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“VIOLATION OF THE WASHINGTON CONSUMER PROTECTION ACT”
Paragraph 2 contains legal conclusions to which no response is necessary. To
herein.
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the extent that Paragraph 2 contains allegations of fact, Coach lacks sufficient knowledge or
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information to form a belief as to the truth of the allegations contained therein and, on that
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basis, denies such allegations.
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3.
Coach admits that, in October 2010, Gibney notified eBay that Gibney believed,
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on the basis of Ms. Kim’s eBay listing, that a handbag listed for sale by Ms. Kim is counterfeit
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and infringed Coach’s trademarks. Coach denies the remaining allegations in Paragraph 3.
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Coach specifically denies that it acted “without conducting any reasonable investigation.”
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4.
Coach admits that the listing referenced in the preceding paragraph was briefly
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removed from eBay but denies that Ms. Kim’s characterization, which implies that the listing
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was never re-instated, is accurate. Coach further denies that it made any claims at all. As to
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the remaining allegations in Paragraph 4, Coach lacks sufficient knowledge or information to
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form a belief as to the truth of the allegations contained therein and, on that basis, denies such
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allegations.
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COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 4
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
5.
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Coach admits that, on or about October 8, 2010, Gibney sent a letter to Ms. Kim
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regarding her eBay listing. Coach denies that Ms. Kim’s characterization of the letter is
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accurate or complete, and submits that the letter is the best evidence of its contents.
6.
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Answering Paragraph 6, Coach lacks sufficient knowledge or information to
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form a belief as to the truth of the allegations contained therein and, on that basis, denies such
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allegations.
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7.
Coach denies the allegations contained in Paragraph 7.
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8.
Coach denies the allegations contained in Paragraph 8.
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9.
Coach denies the allegations contained in Paragraph 9.
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10.
Coach denies the allegations contained in Paragraph 10.
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11.
Coach denies the allegations contained in Paragraph 11.
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“MISREPRESENTATION OF TRADEMARK INFRINGEMENT IN
VIOLATION OF 17 U.S.C. 512(f), AND DECLARATORY JUDGMENT”
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1.
Coach incorporates and realleges the preceding paragraphs as if set forth fully
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2.
Coach admits the allegations in Paragraph 2.
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3.
Coach admits that, in October 2010, Gibney notified eBay that Gibney believed,
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2.
herein.
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on the basis of Ms. Kim’s eBay listing, that a handbag listed for sale by Ms. Kim is counterfeit
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and infringed Coach’s trademarks. Coach denies the remaining allegations in Paragraph 3.
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4.
Coach admits that, on October 8, 2010, Gibney sent a letter to Ms. Kim
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regarding her eBay listing. Coach denies that Ms. Kim’s characterization of the letter is
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accurate or complete, and submits that the letter is the best evidence of its contents. Coach
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denies the remaining allegations in Paragraph 4.
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5.
Answering Paragraph 5, Coach lacks sufficient knowledge or information to
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form a belief as to the truth of the allegations contained therein and, on that basis, denies such
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allegations.
COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 5
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
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6.
Coach denies the allegations in Paragraph 6.
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7.
Coach denies the allegations in Paragraph 7.
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8.
Coach denies the allegations in Paragraph 8.
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9.
Coach denies the allegations in Paragraph 9.
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3.
1.
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Coach admits that, in October 2010, Gibney notified eBay that Gibney believed,
herein.
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Coach incorporates and realleges the preceding paragraphs as if set forth fully
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“DEFAMATION BY DEFENDANT AGAINST PLAINTIFF”
on the basis of Ms. Kim’s eBay listing, that a handbag listed for sale by Ms. Kim is counterfeit
and infringed Coach’s trademarks. Coach denies the remaining allegations in Paragraph 2.
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3.
Coach denies the allegations in Paragraph 3.
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4.
Answering Paragraph 4, Coach lacks sufficient knowledge or information to
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form a belief as to the truth of the allegations contained therein and, on that basis, denies such
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allegations.
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5.
Coach denies the allegations in Paragraph 5.
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6.
Coach denies the allegations in Paragraph 6.
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7.
Coach denies the allegations in Paragraph 7.
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4.
1.
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Coach incorporates and realleges the preceding paragraphs as if set forth fully
2.
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“TORTIOUS INTERFERENCE WITH A BUSINESS EXPECTANCY”
Coach admits that, in October 2010, Gibney notified eBay that Gibney believed,
herein.
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on the basis of Ms. Kim’s eBay listing, that a handbag listed for sale by Ms. Kim is counterfeit
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and infringed Coach’s trademarks. Coach denies the remaining allegations in Paragraph 2.
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3.
Coach admits that, on October 8, 2010, Gibney sent a letter to Ms. Kim
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regarding her eBay listing. Coach denies that Ms. Kim’s characterization of the letter is
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accurate or complete, and submits that the letter is the best evidence of its contents.
COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 6
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
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4.
Coach denies the allegations in Paragraph 4.
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5.
Coach denies the allegations in Paragraph 5.
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5.
“DECLARATION OF NO DEFAMATION BY PLAINTIFF’S COUNSEL”
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Coach admits that Coach, Inc. hired counsel named Stellman Keehnel, who
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practices at DLA Piper in Seattle. Coach further admits that Mr. Keehnel has been in
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communication with counsel for Ms. Kim. Coach further admits that, as of the filing of the
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Amended Complaint, Mr. Keehnel had not yet filed a notice of appearance in this matter
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because there was no occasion to do so, as the time for Coach, Inc. to appear and respond,
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following service of process, had not run, and Coach had not yet been served. Coach denies the
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remaining allegations in Paragraph 1. Coach specifically denies that Mr. Keehnel has been in
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“regular communication” with counsel for Ms. Kim. Coach specifically denies that Mr.
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Keehnel was under any obligation to appear in this case because of “repeated written and oral
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requests” to appear.
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2.
Coach denies that Mr. Keehnel sent counsel for Ms. Kim a letter dated February
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27, 2011. Coach denies that counsel for Ms. Kim’s characterization of any letter sent by
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Mr. Keehnel is accurate or complete, and submits that the best evidence of the contents of any
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letter sent to Ms. Kim’s counsel is such letter.
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3.
Coach again denies that Mr. Keehnel sent counsel for Ms. Kim a letter dated
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February 27, 2011. Coach admits that, in a February 17, 2011 letter, Mr. Keehnel informed
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counsel for Ms. Kim that they committed defamation. Coach denies that counsel for Ms. Kim’s
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characterization of any letter sent by Mr. Keehnel is accurate or complete, and submits that the
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best evidence of the contents of any letter sent to Ms. Kim’s counsel is such letter.
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4.
Coach denies that any “threat” was made. Coach admits that Mr. Keehnel
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informed counsel for Ms. Kim that counsel for Ms. Kim committed defamation and that a claim
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would be filed. Coach denies the remaining allegations in Paragraph 4.
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5.
Coach denies the allegations in Paragraph 5.
COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 7
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
1
6.
Coach denies that the description of counsel for Ms. Kim’s actions during the
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interview – that they “repeated the allegations in the Complaint and answered questions about
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the case” – is accurate or complete. As to the remaining allegations in Paragraph 6, Coach
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lacks sufficient knowledge or information to form a belief as to the truth of the allegations
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contained therein and, on that basis, denies such allegations.
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7.
Coach admits that Gibney sent Ms. Kim a letter, although Coach denies that
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counsel for Ms. Kim’s characterization of the letter is accurate or complete, and submits that
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the letter is the best evidence of its contents. Coach admits that Ms. Kim is a former Coach,
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Inc. employee. Coach lacks sufficient knowledge or information to form a belief as to the truth
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of the allegation that “[t]he actual product was depicted in photographs taken by Ms. Kim and
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posted in the eBay.com advertisement . . . .” Coach denies the remaining allegations in
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Paragraph 7. Coach specifically denies that the defamatory statements by counsel for Ms. Kim
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were substantially true. Coach specifically denies that Coach “failed to reasonably investigate”
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the authenticity of the product. Coach specifically denies that “[i]f Coach had reasonably
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investigated that issue, they could have easily discovered that the product was genuine.” Coach
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specifically denies that counsel for Ms. Kim had a “good faith basis to assert that Coach failed
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to investigate, and the statement was substantially true.” Coach specifically denies that “[t]here
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has been no defamation against Coach.”
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8.
Coach admits that its brand is famous. Coach lacks sufficient knowledge or
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information to form a belief as to the truth of the allegation regarding “the reason the media
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was interested in this Complaint in the first place . . . .” The meaning of the phrase “great deal
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of money” is undefined and, on that basis, Coach denies the allegation regarding the amount of
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money it spends on marketing. Coach denies the remaining allegations in Paragraph 8.
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9.
Coach denies the allegations in Paragraph 9.
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COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 8
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
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V.
CLASS ALLEGATIONS
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1.
Paragraph 1 contains legal conclusions to which no response is necessary. To
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the extent that Paragraph 1 contains allegations of fact, Coach denies the allegations in
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Paragraph 1.
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2.
Coach denies the allegations in Paragraph 2.
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3.
Paragraph 3 contains legal conclusions to which no response is necessary. To
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the extent that Paragraph 3 contains allegations of fact, Coach denies the allegations in
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Paragraph 3.
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4.
Coach denies the allegations in Paragraph 4.
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5.
Coach denies the allegations in Paragraph 5.
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6.
Coach denies the allegations in Paragraph 6.
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7.
Coach denies the allegations in Paragraph 7.
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8.
No response is necessary to Paragraph 8.
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VI.
PRAYER FOR RELIEF
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Coach denies that Ms. Kim is entitled to the relief sought in the Amended Complaint or
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to any other relief.
DEFENSES AND AFFIRMATIVE DEFENSES
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As separate and distinct defenses and affirmative defenses to the Amended Complaint,
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Coach further alleges as follows, without admission that Coach carries the burden of proof on
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any of the defenses set forth below:
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1.
Failure to State a Claim. The Amended Complaint fails to state a claim for
which relief can be granted.
2.
Unclean Hands. Ms. Kim is not entitled to obtain recovery for damages she has
incurred, if any, arising out of her own wrongful conduct.
3.
Prior Breach. Each and every one of Ms. Kim’s causes of action in the
Amended Complaint is barred by the doctrine of prior breach.
COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 9
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
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4.
Intervening Cause. Each and every one of Ms. Kim’s causes of action in the
Amended Complaint is barred by the doctrine of intervening cause.
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Kim’s Own Conduct. Each and every one of Ms. Kim’s causes of action in the
Amended Complaint is barred by Ms. Kim’s own conduct.
6.
Estoppel. Each and every one of Ms. Kim’s causes of action in the Amended
Complaint is barred by the doctrine of estoppel.
7.
Justification. Each and every one of Ms. Kim’s causes of action in the
Amended Complaint is barred by the doctrine of justification.
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8.
Truth. Ms. Kim’s claim for defamation is barred by the doctrine of truth.
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9.
Lack of Damages. The Amended Complaint, and each purported claim by
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Ms. Kim for relief therein, is barred because Ms. Kim has not suffered any damages as a result
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of any acts, conduct, or omissions by Coach.
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10.
Failure to Mitigate. Ms. Kim is precluded from pursuing her Amended
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Complaint and each claim for relief therein because Ms. Kim has failed to mitigate her
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damages, if any, which she seeks to recover.
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11.
Successful Mitigation of Damages. Ms. Kim is precluded from pursuing her
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Amended Complaint and each claim for relief therein because Ms. Kim has successfully
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mitigated her damages, such that there are no damages to recover.
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12.
Justifiable Reliance. Coach justifiably relied on Ms. Kim’s false statement that
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the subject bag is “NEW.” In fact, the subject bag was six or seven years old at the time
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Ms. Kim falsely represented that the bag is “NEW.”
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13.
No Typicality. Ms. Kim is not typical of the class she purports to represent.
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14.
No Numerosity. The putative class does not satisfy the numerosity
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requirement.
15.
Counsel Not Qualified. Ms. Kim’s selected counsel are not qualified to serve
as class counsel.
COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 10
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
16.
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No Predominance. Individual issues predominate, rendering class treatment
inappropriate.
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Concession that Case Cannot Proceed as Class Action. Coach and Coach,
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Inc. filed a motion to strike all class allegations, for reasons stated in the motion. Plaintiff and
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her counsel affirmatively acknowledged in a court filing that they do not oppose Coach and
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Coach, Inc.’s motion to strike class allegations. Plaintiff and her counsel have conceded that
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the lawsuit cannot proceed as a class action.
18.
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Failure to Join Necessary Party. Each and every one of Ms. Kim’s causes of
action in the Amended Complaint is barred by Ms. Kim’s failure to join a necessary party.
19.
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Right to Assert Additional Defenses. The above defenses and affirmative
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defenses are based on the facts and information currently known to Coach. Coach reserves the
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right to amend or add defenses or affirmative defenses based on facts later discovered, pleaded
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or offered.
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REQUEST FOR RELIEF
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Coach requests the following relief:
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1.
Dismissal of the Amended Complaint with prejudice;
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2.
An award of costs and reasonable attorneys’ fees incurred in this lawsuit; and
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3.
An award of any such other and further relief as the Court may deem just and
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proper.
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COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 11
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
1
Dated this 31st day of May, 2011.
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DLA Piper LLP (US)
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By: s/ Stellman Keehnel
Stellman Keehnel, WSBA No. 9309
R. Omar Riojas, WSBA No. 35400
Patrick Eagan, WSBA No. 42679
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104
Tel: 206.839.4800
Fax: 206.839.4801
E-mail: stellman.keehnel@dlapiper.com
E-mail: omar.riojas@dlapiper.com
E-mail: patrick.eagan@dlapiper.com
Attorneys for defendants Coach, Inc. and Coach
Services, Inc., and counter claim plaintiff Coach,
Inc.
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COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 12
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
CERTIFICATE OF SERVICE
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I hereby certify that on May 31, 2011, I electronically filed the foregoing with the Clerk
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of the Court using the CM/ECF system which will send notification of such filing to all counsel
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of record.
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Dated this 31st day of May, 2011.
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/s/ Stellman Keehnel
Stellman Keehnel, WSBA No. 9309
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COACH SERVICES, INC.’S ANSWER, DEFENSES,
AND AFFIRMATIVE DEFENSES TO FIRST
AMENDED COMPLAINT - 13
NO. 2:11-CV-00214-RSM
WEST\223567129.1
DLA Piper LLP (US)
701 Fifth Avenue, Suite 7000
Seattle, WA 98104-7044 ● Tel: 206.839.4800
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