Aecom Energy & Constr., Inc. v. Ripley
This text of 348 F. Supp. 3d 1038 (Aecom Energy & Constr., Inc. v. Ripley) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
HONORABLE RONALD S.W. LEW, Senior U.S. District Judge
Currently before the Court is Plaintiff AECOM Energy & Construction, Inc.'s ("Plaintiff") Motion for Summary Judgment and Permanent Injunction [157] ("Motion"). Having reviewed all papers submitted pertaining to this Motion, the Court NOW FINDS AND RULES AS FOLLOWS: the Court GRANTS Plaintiff's Motion against Defendants Gary Topolewski, Morrison Knudsen Corporation, Morrison-Knudsen Company, Inc., Morrison-Knudsen Services, Inc., and Morrison-Knudsen International Inc.
I. BACKGROUND
A. Factual Background
1. Plaintiff's Corporate History
Morrison Knudsen Corporation ("MK") was a renowned multinational construction *1044and engineering firm responsible for many notable projects, including the Hoover Dam, the San Francisco-Oakland Bay Bridge, and the Trans-Alaska Pipeline. Pl.'s Statement of Uncontroverted Facts ("Pl.'s SUF") ¶ 3(b), ECF No. 173. MK has used many trademarks including: "MORRISON KNUDSEN," the MKO logo, and "MKCO MORRISON KNUDSEN" (collectively, the "MK Marks"). Id. ¶ 17(b). Plaintiff maintained trademark registrations for the MK Marks until February 2016, id. ¶ 17(b)-(c), and continues to use MK's logo and corporate history in many of its current promotional materials. Id. ¶ 17 (listing exemplars); Decl. of Charles Szurgot ("Szurgot Decl.") ¶ 8, Exs. 1-7, ECF No. 175.
In 1996, MK merged with Washington Construction Group, Inc. ("WGI"), while continuing to operate under the name "Morrison Knudsen Corporation." Szurgot Decl. ¶ 5. In 2000, MK changed its name to WGI. Id. In 2007, URS Corp. ("URS") acquired WGI, and in 2014, AECOM, the parent company of Plaintiff AECOM Energy & Construction, Inc., acquired URS and its subsidiaries. Id. ¶¶ 6-7.
2. Defendants' Use of MK Name
Plaintiff alleges that, beginning in 2008, Defendants Gary Topolewski, Morrison Knudsen Corporation, Morrison-Knudsen Company, Inc., Morrison-Knudsen Services, Inc., and Morrison-Knudsen International Inc., (collectively, the "Defendants"), undertook an elaborate scheme to pass themselves off as MK and take advantage of MK's good reputation. Pl's. Mem. re Mot. for Summ. J. ("Mot.") 4:8-9, ECF No. 172.
a. "Morrison-Knudsen Services, Inc."
Morrison-Knudsen Services, Inc. was an affiliate of MK incorporated in Nevada in 1982 under a different name, but changed its name to Morrison-Knudsen Services, Inc. in 1983. Decl. of Diana M. Torres ("Torres Decl.") ¶ 19, ECF No. 174; id., Ex. Q, Corporate Records of Morrison-Knudsen Services, Inc. 947-52, 954-55, ECF No. 174-17. In 2002, MK dissolved Morrison-Knudsen Services, Inc. through its Vice President and General Counsel. Id., Ex. Q at 987-89.
In 2008, defaulting Defendant Todd Hale1 filed a Certificate of Revival with the Nevada Secretary of State's office for Morrison-Knudsen Services, Inc., swearing under penalty of perjury that he had authority to do so from the company's board of directors. Id., Ex. Q at 990-93, ECF No. 174-17. The Certificate of Revival lists defaulting Defendant Henry Blum as Vice President and defaulting Defendant John Ripley as Secretary. Id., Ex. Q at 991. In 2008, Hale filed the annual list of officers and directors listing Morrison-Knudsen Services' address as 2049 Century Park East, Suite 3850, Los Angeles, California 90067. Id., Ex. Q at 996. Around 2007 or 2008, Blum contacted Defendant Topolewski about reviving "Morrison Knudsen." Torres Decl. Ex. B, at 25:19-26:9, 27:5-6. Defendant Topolewski was later listed as President and Secretary in 2010; Chairman in 2011; Chairman, Director, and President in 2014; Secretary and Director in 2016; and President, Secretary, and Director in 2017. Id., Ex. Q, at 996-1005.
b. "Morrison Knudsen Corporation"
MK incorporated Morrison Knudsen of Viet Nam ("MK Viet Nam") in 1996 and dissolved it in 2002. Torres Decl. ¶ 20, Ex. R, Corporate Records of Morrison Knudsen Corp. 1019-21, 1029-30, ECF No. 174-18. In October 2014, Defendants Topolewski and Blum filed a Certificate of Revival *1045with the Nevada Secretary of State, seeking to reinstate MK Viet Nam and declaring, under penalty of perjury, that they had authority to do so from MK Viet Nam's board of directors. Id. at 1033-35. The Certificate of Revival listed Defendant Topolewski as President, Secretary, and Treasurer; defaulting Defendant Blum as Vice President; and defaulting Defendants Ripley and Hale as Directors. Id. The address for each was listed as 2049 Century Park East, Suite 3850, Los Angeles, California 90067. Id. at 1033.
Later that month, after MK Viet Nam was revived, Defendant Topolewski filed a Certificate of Amendment with the Nevada Secretary of State to change the name of MK Viet Nam to "Morrison Knudsen Corporation." Id. at 1036. The annual list of officers filed on January 27, 2016 reflects the name change. Id. at 1037.
c. "Morrison-Knudsen International Inc." and "Morrison-Knudsen Company"
Plaintiff also alleges the names of two unrelated entities, E Planet Communications, Inc. ("E Planet") and Westland Petroleum Corporation ("Westland"), were changed to make them appear to be MK affiliates. Pl.'s Mot. at 4:28-5:7.
First, E Planet was incorporated in Nevada in 2011. Torres Decl. ¶ 21, Ex. S, Corporate Records of Morrison-Knudsen Int'l Inc. 1050, ECF No. 174-19. As of 2012, the company's records listed Defendant Topolewski as E Planet's President and Secretary. Id. In May 2016, defaulting Defendant Zukaloff filed a Certificate of Amendment with the Nevada Secretary of State to change the name of E Planet Communications, Inc. to "Morrison-Knudsen International Inc." Id. at 1065.
Second, Westland was incorporated in Nevada in 1926 and fell out of good standing in 2013. Torres Decl. ¶ 22, Ex. T, Corporate Records for Morrison-Knudsen Company, Inc., 1068-74, 1087-88, ECF No. 174-20. In October 2016, John Anderson, listed as Vice President of Westland, filed a Certificate of Reinstatement for Westland with the Nevada Secretary of State. Torres Decl. in Supp. Prelim. Inj. Ex. 4, 150-152, ECF No. 19-4. The records listed Westland Petroleum's address as 2049 Century Park East, Suite 3850, Los Angeles, California 90067. Id. at 151. The Nevada Secretary of State granted reinstatement sometime that month, and on October 18, 2016, defaulting Defendant Ripley filed a Certificate of Amendment with the Nevada Secretary of State to change Westland's name to "Morrison-Knudsen Company, Inc." Id.
d. Websites and Press Releases
On March 25, 2008, Defendant Morrison Knudsen Corporation registered the domain names www.morrison-knudsen.com and www.morrison-knudsen.net. Torres Decl. ¶¶ 9-10; id. Exs. E-F, Whois Record. The website contained promotions of MK's history, current AECOM projects, a current business relationship AECOM has with a construction equipment maker, and the website also offered to sell construction equipment used in MK's projects. See Pl.'s SUF ¶ 2(b),(f), ¶ 4(a)-(b),(k)-(n).
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HONORABLE RONALD S.W. LEW, Senior U.S. District Judge
Currently before the Court is Plaintiff AECOM Energy & Construction, Inc.'s ("Plaintiff") Motion for Summary Judgment and Permanent Injunction [157] ("Motion"). Having reviewed all papers submitted pertaining to this Motion, the Court NOW FINDS AND RULES AS FOLLOWS: the Court GRANTS Plaintiff's Motion against Defendants Gary Topolewski, Morrison Knudsen Corporation, Morrison-Knudsen Company, Inc., Morrison-Knudsen Services, Inc., and Morrison-Knudsen International Inc.
I. BACKGROUND
A. Factual Background
1. Plaintiff's Corporate History
Morrison Knudsen Corporation ("MK") was a renowned multinational construction *1044and engineering firm responsible for many notable projects, including the Hoover Dam, the San Francisco-Oakland Bay Bridge, and the Trans-Alaska Pipeline. Pl.'s Statement of Uncontroverted Facts ("Pl.'s SUF") ¶ 3(b), ECF No. 173. MK has used many trademarks including: "MORRISON KNUDSEN," the MKO logo, and "MKCO MORRISON KNUDSEN" (collectively, the "MK Marks"). Id. ¶ 17(b). Plaintiff maintained trademark registrations for the MK Marks until February 2016, id. ¶ 17(b)-(c), and continues to use MK's logo and corporate history in many of its current promotional materials. Id. ¶ 17 (listing exemplars); Decl. of Charles Szurgot ("Szurgot Decl.") ¶ 8, Exs. 1-7, ECF No. 175.
In 1996, MK merged with Washington Construction Group, Inc. ("WGI"), while continuing to operate under the name "Morrison Knudsen Corporation." Szurgot Decl. ¶ 5. In 2000, MK changed its name to WGI. Id. In 2007, URS Corp. ("URS") acquired WGI, and in 2014, AECOM, the parent company of Plaintiff AECOM Energy & Construction, Inc., acquired URS and its subsidiaries. Id. ¶¶ 6-7.
2. Defendants' Use of MK Name
Plaintiff alleges that, beginning in 2008, Defendants Gary Topolewski, Morrison Knudsen Corporation, Morrison-Knudsen Company, Inc., Morrison-Knudsen Services, Inc., and Morrison-Knudsen International Inc., (collectively, the "Defendants"), undertook an elaborate scheme to pass themselves off as MK and take advantage of MK's good reputation. Pl's. Mem. re Mot. for Summ. J. ("Mot.") 4:8-9, ECF No. 172.
a. "Morrison-Knudsen Services, Inc."
Morrison-Knudsen Services, Inc. was an affiliate of MK incorporated in Nevada in 1982 under a different name, but changed its name to Morrison-Knudsen Services, Inc. in 1983. Decl. of Diana M. Torres ("Torres Decl.") ¶ 19, ECF No. 174; id., Ex. Q, Corporate Records of Morrison-Knudsen Services, Inc. 947-52, 954-55, ECF No. 174-17. In 2002, MK dissolved Morrison-Knudsen Services, Inc. through its Vice President and General Counsel. Id., Ex. Q at 987-89.
In 2008, defaulting Defendant Todd Hale1 filed a Certificate of Revival with the Nevada Secretary of State's office for Morrison-Knudsen Services, Inc., swearing under penalty of perjury that he had authority to do so from the company's board of directors. Id., Ex. Q at 990-93, ECF No. 174-17. The Certificate of Revival lists defaulting Defendant Henry Blum as Vice President and defaulting Defendant John Ripley as Secretary. Id., Ex. Q at 991. In 2008, Hale filed the annual list of officers and directors listing Morrison-Knudsen Services' address as 2049 Century Park East, Suite 3850, Los Angeles, California 90067. Id., Ex. Q at 996. Around 2007 or 2008, Blum contacted Defendant Topolewski about reviving "Morrison Knudsen." Torres Decl. Ex. B, at 25:19-26:9, 27:5-6. Defendant Topolewski was later listed as President and Secretary in 2010; Chairman in 2011; Chairman, Director, and President in 2014; Secretary and Director in 2016; and President, Secretary, and Director in 2017. Id., Ex. Q, at 996-1005.
b. "Morrison Knudsen Corporation"
MK incorporated Morrison Knudsen of Viet Nam ("MK Viet Nam") in 1996 and dissolved it in 2002. Torres Decl. ¶ 20, Ex. R, Corporate Records of Morrison Knudsen Corp. 1019-21, 1029-30, ECF No. 174-18. In October 2014, Defendants Topolewski and Blum filed a Certificate of Revival *1045with the Nevada Secretary of State, seeking to reinstate MK Viet Nam and declaring, under penalty of perjury, that they had authority to do so from MK Viet Nam's board of directors. Id. at 1033-35. The Certificate of Revival listed Defendant Topolewski as President, Secretary, and Treasurer; defaulting Defendant Blum as Vice President; and defaulting Defendants Ripley and Hale as Directors. Id. The address for each was listed as 2049 Century Park East, Suite 3850, Los Angeles, California 90067. Id. at 1033.
Later that month, after MK Viet Nam was revived, Defendant Topolewski filed a Certificate of Amendment with the Nevada Secretary of State to change the name of MK Viet Nam to "Morrison Knudsen Corporation." Id. at 1036. The annual list of officers filed on January 27, 2016 reflects the name change. Id. at 1037.
c. "Morrison-Knudsen International Inc." and "Morrison-Knudsen Company"
Plaintiff also alleges the names of two unrelated entities, E Planet Communications, Inc. ("E Planet") and Westland Petroleum Corporation ("Westland"), were changed to make them appear to be MK affiliates. Pl.'s Mot. at 4:28-5:7.
First, E Planet was incorporated in Nevada in 2011. Torres Decl. ¶ 21, Ex. S, Corporate Records of Morrison-Knudsen Int'l Inc. 1050, ECF No. 174-19. As of 2012, the company's records listed Defendant Topolewski as E Planet's President and Secretary. Id. In May 2016, defaulting Defendant Zukaloff filed a Certificate of Amendment with the Nevada Secretary of State to change the name of E Planet Communications, Inc. to "Morrison-Knudsen International Inc." Id. at 1065.
Second, Westland was incorporated in Nevada in 1926 and fell out of good standing in 2013. Torres Decl. ¶ 22, Ex. T, Corporate Records for Morrison-Knudsen Company, Inc., 1068-74, 1087-88, ECF No. 174-20. In October 2016, John Anderson, listed as Vice President of Westland, filed a Certificate of Reinstatement for Westland with the Nevada Secretary of State. Torres Decl. in Supp. Prelim. Inj. Ex. 4, 150-152, ECF No. 19-4. The records listed Westland Petroleum's address as 2049 Century Park East, Suite 3850, Los Angeles, California 90067. Id. at 151. The Nevada Secretary of State granted reinstatement sometime that month, and on October 18, 2016, defaulting Defendant Ripley filed a Certificate of Amendment with the Nevada Secretary of State to change Westland's name to "Morrison-Knudsen Company, Inc." Id.
d. Websites and Press Releases
On March 25, 2008, Defendant Morrison Knudsen Corporation registered the domain names www.morrison-knudsen.com and www.morrison-knudsen.net. Torres Decl. ¶¶ 9-10; id. Exs. E-F, Whois Record. The website contained promotions of MK's history, current AECOM projects, a current business relationship AECOM has with a construction equipment maker, and the website also offered to sell construction equipment used in MK's projects. See Pl.'s SUF ¶ 2(b),(f), ¶ 4(a)-(b),(k)-(n).
"Morrison Knudsen" issued three press releases claiming original MK projects and announcing: (1) on March 16, 2016, "Morrison Knudsen Awarded $570 Million Environmental Clean Up Project"; (2) on June 30, 2016, "Morrison Knudsen Awarded $36 Million Mine Engineering Contract"; and (3) on April 11, 2017, "Morrison Knudsen awarded $1.2 Billion Construction and Engineering Contract". Torres Decl. ¶¶ 16-18, Exs. N-P, ECF Nos. 174-14, 174-15, 174-16.
3. Take Over of the MK Marks
On November 10, 2014, defaulting Defendant Hale submitted a "change of address" form to the United States Patent *1046and Trademark Office ("USPTO"). Decl. of Annette Bottaro-Walklet ("Walklet Decl.") ¶ 6, ECF No. 14; id. Ex. F., ECF No. 14-1. The contact information listed in the USPTO records for two of Plaintiff's registered trademarks ("MORRISON KNUDSEN" and "MKCO MORRISON KNUDSEN") was changed from Plaintiff's addresses, to Hale's email address todd.hale@morrison-knudsen.com, and the physical address of 2049 Century Park East, Suite 3850, Los Angeles, California 90067. See Torres Decl. ¶ 23, Ex. U, USPTO Record, ECF No. 174-21.
On November 11, 2015, defaulting Defendant Zukaloff submitted a document to the USPTO purporting to assign the registered trademark "MKCO MORRISON KNUDSEN" from Washington Group International (a previous name of Plaintiff) to Defendant Morrison Knudsen Corporation, listed at 2049 Century Park East, Suite 3850, Los Angeles, California 90067. Id. ¶ 24, Ex. V, USPTO Record, ECF No. 174-22. On March 26, 2016, Defendant Morrison Knudsen Corporation filed a new application with the USPTO to register the mark "MORRISON KNUDSEN," declaring under penalty of perjury that they owned the mark and claiming a first-use date of April 18, 1933. See id. Ex. W, ECF No. 174-23.
B. Procedural Background
Plaintiff filed its Complaint [1] on July 21, 2017, alleging the following claims:
1) False Designation of Origin
2) False Advertising
3) Cyberpiracy
4) California Common Law Unfair Competition
5) California Statutory Unfair Competition
6) California Statutory False Advertising
7) Petition for Cancellation of Registered Mark
Plaintiff filed a Motion for Preliminary Injunction [11] on August 1, 2017. This Court granted Plaintiff's Motion for Preliminary Injunction [45] on September 28, 2017. The Clerk of Court entered default against Defendants Todd Hale, Henry Blum, John Ripley, and Bud Zukaloff [77] on December 4, 2017.
On July 24, 2018 Plaintiff filed the instant Motion for Summary Judgment and Permanent Injunction [157] against the remaining Defendants: Gary Topolewski; Morrison Knudsen Corporation; Morrison-Knudsen Company, Inc.; Morrison-Knudsen Services, Inc.; and Morrison-Knudsen International Inc. The Court entered a joint stipulation on July 31, 2018 [167], setting August 17, 2018, as Defendants' deadline to file their Opposition. Plaintiff filed a Response on August 20, 2018 [184], claiming that its Motion should be granted because Defendants failed to timely file their Opposition. Defendants then filed a Memorandum of Good Cause for its Late-Filed Opposition [186] on August 20, 2018, and its Opposition [187] on August 21, 2018. Plaintiff filed its Second Reply [201] in response to Defendants' Opposition on September 4, 2018.
II. DISCUSSION
A. Legal Standard
Federal Rule of Civil Procedure 56(a) states that a "court shall grant summary judgment" when "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). A fact is "material" for purposes of summary judgment if it might affect the outcome of the suit, and a "genuine" issue exists if the evidence is such that a reasonable fact-finder could return a verdict for the nonmovant. Anderson v. Liberty Lobby, Inc.,
Under Rule 56, the party moving for summary judgment has the initial burden to show "no genuine dispute as to any material fact." Fed. R. Civ. P. 56(a) ; see Nissan Fire & Marine Ins. Co. v. Fritz Cos.,
B. Discussion
1. Defendants' Late-Filed Opposition
On July 31, 2018, the Court entered a joint stipulation extending Defendants' deadline to file their Opposition to August 17, 2018 [167]. However, on August 20, 2018, Plaintiff filed a response addressing the fact that Defendants had not yet filed their Opposition [184]. Defendants then filed their Opposition on August 21, 2018 [187]. With their Opposition, Defendants filed a Memorandum of Points and Authorities re Good Cause for the Court to Accept the Late-Filed Opposition [186]. Defendants argue that the short delay did not prejudice or impact Plaintiff because Plaintiff still had 15 days to file its Reply pursuant to the stipulation, a week longer than contemplated under Local Rules 7-9 and 7-10. Regardless, Local Rule 7-12 prohibits the Court from granting a motion solely based on the failure to file an opposition within the deadline for motions pursuant to Fed. Rule Civ. P. 56. As such, the Court will exercise its discretion to consider the late-filed Opposition and rule on the merits of Plaintiff's Motion.
2. Defendants' Evidentiary Objections
a. Declarations
Defendants make numerous evidentiary objections [189] to the following: (1) Declaration of Diana M. Torres [174], (2) Declaration of Tara McAdam Kassal [157-2], (3) Declaration of Lea Ann Russell [175-3], (4) Declaration of Ed Toms [175-4], and (5) Declaration of Charles Szurgot [175]. The Court OVERRULES Defendants' evidentiary objections because they "are boilerplate and devoid of any specific argument or analysis as to why any particular exhibit or assertion in a declaration should be excluded." United States v. HVI Cat Canyon, Inc.,
b. Evidence in Support of Plaintiff's Reply
Defendants also object to Exhibit 4 to Plaintiff's Reply in Support of its Motion [209] consisting of three press releases, in which Defendants announce contracts totaling $1.806 billion. See Defs.' Obj., ECF No. 216. Defendants argue that Plaintiff cannot rely on these press releases because they were disclosed after the close of discovery. A party must make certain initial *1048disclosures "without awaiting a discovery request," including a "computation of each category of damages claimed." Fed. R. Civ. P. 26(a)(1)(A)(iii). Where a party fails to disclose information required by Rule 26, "the party is not allowed to use that information or witness to supply evidence on a motion, at a hearing, or at trial, unless the failure was substantially justified or is harmless." Fed. R. Civ. P. 37(c)(1). Moreover, the Court detailed in its Order re Oral Argument [229] that Plaintiff was substantially justified in its delay in disclosing the press release given Defendants lengthy history of bad faith litigation practices,2 and no prejudice to Defendants as a result. See Order re Oral Argument, ECF No. 229. For these reasons, the Court OVERRULES Defendants' Objection to the three press releases.
3. Plaintiff's Evidentiary Objections
Plaintiff makes several evidentiary objections to the Declaration of Drew Sherman in Support of Defendants' Opposition ("Sherman Decl.") [187-1]. First, Plaintiff objects to Defendants' use of a Senior Thesis from Boise State University on MK ("Senior Thesis"). See Sherman Decl., Ex. A at 7-10, ECF No. 187-1. Defendants rely on a one-page excerpt from the Senior Thesis for its proposition that MK changed its name to rid a "tarnished reputation." Def.'s Stmt. of Genuine Disputes of Fact ("SGDF") ¶ 2(b), ECF No. 188. Plaintiff argues that Sherman has no personal knowledge of who the author is, the author's background, how the Senior Thesis was created, or what materials the author considered. Pl's Evidentiary Objs. 1:13-16, ECF No. 203. As required by Rule 56, documentary materials need authentication through affidavits or declarations from individuals with personal knowledge of the document. Zoslaw v. MCA Distrib. Corp.,
Additionally, Defendants rely on the Senior Thesis for its content containing a quote of a former MK worker stating, "[b]ut just imagine the value of the name and reputation and history they're wiping out with that one stroke." See Ex. A at 10. Because these statements are hearsay and not admissible under an exception, the Court SUSTAINS Plaintiff's Objections. See Fed. R. Evid. 802 - 803.
Plaintiff also objects to the following exhibits on the grounds that Defendants never produced them during discovery: (1) Trademark Registrations, see Sherman Decl. ¶¶ 7-9, Exs. B1-B26; (2) State of Ohio Forms, see id. at ¶¶ 10-11, Exs. C1-C27; and (3) USPTO Registration, see id. at ¶¶ 20-21, Ex. F. Because the Court does not rely on the objected-to-evidence, the Court SUSTAINS as MOOT this objection.
Finally, Plaintiff objects to forty pages of the Szurgot Deposition Transcript Defendants submitted as Exhibit D to the Sherman Declaration because Defendants do not identify with specificity the portions of the transcript they rely upon. Pl.'s Objs. at 3:11-12. A party asserting a fact is genuinely disputed must support the assertion by "citing to particular parts of materials in the record, including depositions *1049...."). Fed. R. Civ. P. 56(c)(1)(A). Defendants cite specifically to portions of the transcript in their Statement of Genuine Disputes, see SGDF ¶ 9, thus the Court OVERRULES this objection.
4. Summary Judgment
Plaintiff seeks summary judgment on each of Plaintiff's causes of action. The Court addresses these in turn.
a. False Designation of Origin
"Section 43(a) of the Lanham Act,
i. Use in Commerce
"[C]ommunications made on public websites" satisfy the use in commerce requirement. Nat'l Grange of the Order of Patrons of Husbandry v. Cal. State Grange, No. 2:16-201 WBS DB,
Plaintiff argues that Defendants used the MK Marks4 on their website, www.morrison-knudsen.com and www.morrison-knudsen.net 5 to pass themselves off as "Morrison-Knudsen." Plaintiff states as an uncontroverted fact that "Defendants," collectively, all used the MK Marks on the websites. Pl.'s SUF ¶ 1. Defendants jointly filed one Statement of Genuine Dispute of Facts ("SGDF"), in which they also refer to themselves collectively as "Defendants." See Defs.' SDGF, ECF No. 188. In their Opposition, Defendants briefly argue that Plaintiff did not articulate which "uncontroverted fact" applies to each Defendant. Def.'s Opp'n 2:10-11, ECF No. 187. However, nowhere in Defendants' SGDF did any of the Defendants dispute Plaintiff's grouping of them together. And neither did Defendants dispute Plaintiff's claim that all of the Defendants used the website. Defendants one-sentence argument *1050with no cited authority or evidence in their Opposition is insufficient to create a genuine issue of material fact. U.S. v. Baisden, No. 1:06-cv-01368-AWI-MJS,
In their SGDF, Defendants only dispute the website to the extent it is identical and confusingly similar to the MK Marks, and that they registered the domain names with a bad faith intent. Def.'s SGDF ¶¶ 10-11. Because Defendants did not dispute Plaintiff's contention that the Defendants all used the MK Marks collectively on the website, for the purposes of this Motion the Court takes this fact as true. See Beard v. Banks,
Moreover, Plaintiff provided evidence that this website was used by all Defendants collectively. Defendant Morrison Knudsen Corporation registered both of the domain names on behalf of all Defendants. Pl.'s SUF ¶ 1(a); Torres Decl. ¶¶ 9-10, Exs. E-F, ECF Nos. 174-5, 174-6 (showing registration of the websites).6 None of the Defendants dispute that the website was used as one website by the Corporate Defendants.7 Torres Decl. Ex. B, 81:14-19 (deposition testimony of Defendant Topolewski stating that the Corporate Defendants' website was at www.morrison-knudsen.com ). The entire website portrays Defendants as "Morrison-Knudsen." See Torres Decl. Ex G., 259, ECF No. 174-7 (banner reading "About MK - MORRISON-KNUDSEN"); id. at 260 (banner reading "Contact Us - MORRISON-KNUDSEN"). Defendants Morrison Knudsen Corporation and Morrison-Knudsen Services were both directly listed on the website. Id. at 260. The website also lists the North American headquarters address *1051as 2049 Century Park East, Suite 3850, Los Angeles, California 90067. See id. This is the same address listed on the records for each Corporate Defendant and Defendant Topolewski in his capacity as an officer of at least one of the Corporate Defendants. Id. Ex. R at 1034 (showing both Morrison Knudsen Corporation's address and Defendant Topolewski's address as its president); id. Ex. Q at 996 (address for Morrison-Knudsen Services); id. Ex, S at 1066 (address for Morrison-Knudsen International); and Torres Decl. ISO Prelim. Inj. Ex. 4, 151, ECF No. 19-4 (address for Morrison-Knudsen Company, Inc.).
Moreover, all of the Corporate Defendants used an email address associated with the domain name, info@morrison-knudsen.com. Torres Decl. Ex. B, at 24:9-20. This email address was also used to receive potential bids and inquiries from www.morrisonknudsen.com. See Davis Decl. ¶ 10, Ex. L, ECF No. 36-1 (Mr. Davis' email inquiring about "MK" stating he "stumbled on" the website); Torres Decl. Ex. M, 933-935, ECF No. 178-1 (email inquiring about potential bid). Defendant Topolewski also used an email associated with the domain name, gary@morrison-knudsen.com. Torres Decl. Ex. B, at 75:21-23.
When asked to identify the factual basis for Defendants' "advertising, marketing, and promotional materials" that they "performed or were in any way involved in the projects accomplished by the Original MK" shown on their website, the four Corporate Defendants and Defendant Topolewski collectively responded that "Responding Parties revived an abandoned company." See Torres Decl. ISO Pl.'s Reply ¶ 10, Ex. 7, Def.'s Supp. Resp. to First and Second Set of Interrogs., 7:19-26, ECF No. 202-7. Defendants have not put forth any evidence that they did not use the website to advertise themselves as "Morrison Knudsen."
Thus, there is no triable issue that all of the Defendants used the website, satisfying the first element. To the extent "Defendants' " use of the website applies to the remaining claims, it refers to all Defendants collectively.
ii. False Designation of Origin, False or Misleading Description, or Representation of Fact
Plaintiff has put forth ample, undisputed evidence that Defendants' website claims the original MK's accomplishments as their own. In the website's "About MK" section, Defendants describe the history of the original MK dating back to 1912 as its own, including projects such as the Hoover Dam, Cam Ranh Bay, and Trans-Alaska Pipeline. Torres Decl. ¶ 11, Ex. G, at 255, 362; id. ¶ 5. It is also undisputed that the website offers for sale used construction equipment bearing the MK logo. Id. Ex. G, at 309-316. Such representation of the original MK's history on a website is sufficient to satisfy this element. See Nat'l Grange of the Order of Patrons of Husbandry, No. 2:16-201 WBS DB,
Rather than discussing the elements of false designation, Defendants argue at length that there is a triable issue as to Plaintiff's ownership and whether it is senior user of the mark. This argument is irrelevant as ownership is not a required element for false designation. Even if it were, while Defendants are correct that registrations for the MK Marks have been listed under prior corporate names, the *1052undisputed evidence shows that Plaintiff is the same entity that has retained the same legal rights to the MK Marks throughout a series of corporate name changes and mergers. See Pl.'s SUF ¶ 17(a). First, Defendants do not dispute that MK merged with Washington Construction Group, Inc. ("WGI") in 1996, while continuing to operate under the name "Morrison Knudsen Corporation".8 Szurgot Decl. ¶ 5, ECF No. 175. And in 2000, MK changed its name to WGI.
iii. Likelihood of Confusion
As to likelihood of confusion, courts consider eight factors referred to as the Sleekcraft factors.9 Where the use of a name or mark is identical to that of the plaintiff on the very same goods and services for which the plaintiff uses the name or mark, that alone can be "case-dispositive" before a full balancing of the Sleekcraft factors. See Stone Creek, Inc. v. Omnia Italian Design, Inc.,
Here, Plaintiff has put forth evidence that the marks on Defendants' website are identical and used in the same market to sell the same services and goods, including construction contracts and construction equipment. See Torres Decl. Ex. G, at 255-57. Additionally, Defendants' website offered for sale construction equipment bearing the MK logo. See id. at 309-16; id. Ex. B, Topolewski Dep. at 87-89 (acknowledging it is the red MK logo on the equipment). The entire website features the MKO logo and Morrison Knudsen name on each page. See generally Torres Decl., Ex. G;
*1053GoTo.com, Inc. v. Walt Disney Co.,
Even a consideration of the key factors shows a likelihood of confusion. First, as to strength of the mark, there is substantial evidence of MK's reputation and legacy dating back to 1912 for projects such as the Hoover Dam, San Francisco-Oakland Bay Bridge, and the Trans-Alaska Pipeline. See Szurgot Decl. ¶ 4; Torres Decl. ¶ 13, Ex. J (TIME Magazine cover featuring MK founder). The strength of MK as a brand is evident from both parties' continuous use of its history in its marketing. See, e.g., Torres Decl. ¶ 11, Ex. G, at 255-57, 362 (showing MK projects on Defendants' websites); id. ¶¶ 16-18, Exs. N, O, P (press releases claiming MK's signature projects).
Additionally, Plaintiff has shown actual confusion. Defendants do not dispute that a former AECOM employee, Brandon Davis, confused Defendants' website for the original MK. See Davis Decl. ¶¶ 3-9, ECF No. 36. When Mr. Davis found the website www.morrison-knudsen.com, he emailed info@morrison-knudsen.com on April 18, 2013, and inquired whether MK survived the sale from WGI to URS. See id., Ex. L, ECF No. 36-1. Mr. Davis received a response stating, "the entire group of MK companies are separate from URS now." See id. Mr. Davis later spoke to Defendant Topolewski on the phone, and based on what Defendant Topolewski told him, "believed that Gary and the people working for the Morrison Knudsen company with which he was affiliated were employees of some spun off entity of the iconic Morrison Knudsen companies." Id. ¶ 9. In 2015, Mr. Davis contacted Defendant Topolewski again for a potential bid under the belief that it was the original MK. See id. ¶¶ 10-11 ("I would never have suggested that my colleague contact Gary at Morrison-Knudsen.com if I had known they were not legitimately operating the iconic Morrison Knudsen ....").10 Based on Mr. Davis' actual confusion, future confusion is likely. Sleekcraft, 599 F.2d at 352 ("Evidence that use of the two marks has already led to confusion is persuasive proof that future confusion is likely.").
Finally, Plaintiff has put forth undisputed evidence showing that each Defendants' intent in selecting the MK Marks was to pass themselves off as MK. Defendants Morrison-Knudsen Services and Morrison Knudsen Corporation (formally MK Viet Nam) both assumed the identify of original MK entities, rather than creating their own business. See Torres Decl. Ex. Q, at 990-93 (revival of Morrison-Knudsen Services); id. Ex. R, at 1033-35 (revival of MK Viet Nam). Defendant Topolewski was the one who revived MK Viet Nam in 2014 (later changed to Morrison Knudsen Corporation) and signed under penalty of perjury that he was authorized by a court or the entity to do so. Id. And Defendants Morrison-Knudsen International, Inc., and Morrison-Knudsen Company, Inc. both changed their names to assume an MK identity. Id. Ex. S, at 1065 (E Planet changing its name to Morrison-Knudsen International, Inc.); id. Ex. T, at 1091 (Westland changing name to Morrison-Knudsen Company). No one affiliated with *1054the original MK, URS, or AECOM gave any of the Defendants permission to do so. Szurgot Decl. ¶ 13.
Neither do any of the Defendants dispute that they were all involved in the revival of "Morrison Knudsen" or offer any evidence to the contrary. When asked to identify the factual basis for Defendants' "advertising, marketing, and promotional materials" that they "performed or were in any way involved in the projects accomplished by the Original MK" on their website, the four Corporate Defendants and Defendant Topolewski collectively responded that "Responding Parties revived an abandoned company." See Torres Decl. ISO Pl.'s Reply ¶ 10, Ex. 7, Def.'s Supp. Resp. to First and Second Set of Interrogs., 7:19-26, ECF No. 202-7. Additionally, when asked about the Corporate Defendants and the original MK, Defendant Topolewski testified at his deposition "they were one in the same," and that "we [Topolewski and Corporate Defendants] revived Morrison Knudsen." Torres Decl. ¶ 5; id. Ex. B, Topolewski Dep. at 91:9-23.
The evidence that Defendants knew of MK's history, and claimed it for their own upon reviving it without permission, supports a likelihood of confusion. Entrepreneur Media, Inc. v. Smith,
Defendants' only argument offers legal conclusions, with no authority or evidence, that because Defendants are the current owners of the MK Marks there cannot be confusion by Defendants' use of the marks. This is insufficient to create a triable issue of fact. See Hutchinson v. United States,
In sum, Plaintiff has put forth undisputed evidence showing Defendants used their website to pass themselves off as the original MK, and the Court GRANTS Plaintiff's Motion on this claim as to all Defendants.
b. Defendants' Abandonment Defense Fails
Defendants argue that Plaintiff has abandoned its use of the MK Marks and therefore has no right to bring its trademark claims under the Lanham Act. Opp'n 5:6-16. To prove abandonment of the MK Marks, Defendants must establish "(1) discontinuance of trademark use and (2) intent not to resume such use." Electro Source, Ltd. Liab. Co. v. Brandess-Kalt-Aetna Grp., Inc.,
*1055Yucaipa Corp. Initiatives Fund I, LP v. Hawaiian Airlines, Inc., No. cv 13-9060,
Defendants argue there is a prima facie case of abandonment because it has been sixteen years since Plaintiff "started walking away" from the MK Marks and any use since then has been a "token use." Opp'n at 13:17-19, 14:26-28, 15:1-12. A "token use" is a use "undertaken without bona fide commercial intent in a mere attempt to reserve the mark for future use." Pollution Denim & Co. v. Pollution Clothing Co.,
c. False Advertising
To succeed on its claim for false advertising under the Lanham Act,13 Plaintiff must prove:
(1) a false statement of fact by the defendant in a commercial advertisement about its own or another's product; (2) the statement actually deceived or has the tendency to deceive a substantial segment of its audience; (3) the deception is material, in that it is likely to influence the purchasing decision; (4) the defendant caused its false statement to enter interstate commerce; and (5) the plaintiff has been or is likely to be injured as a result of the false statement, *1056either by direct diversion of sales from itself to defendant or by a lessening of the goodwill associated with its products.
Southland Sod Farms v. Stover Seed Co.,
To establish the first element, statements can be "literally false, either on [their] ... face or by necessary implication," or "literally true but likely to mislead or confuse customers."
As to the second and third elements, where a statement is literally false or the defendant intentionally set out to deceive, both actual deception and materiality are presumed. See ITEX Corp. v. Glob. Links Corp.,
As to the fourth element, it is undisputed that Defendants caused their false statements to enter interstate commerce, as they collectively used their online website and email addresses connected to the same domain name. See supra Section II.B.4.a; Sutcliffe,
Defendants do not address any of the above elements, and only argue there is a genuine issue as to the last element, that Plaintiff cannot show any injury because Plaintiff failed to supplement its initial disclosures with its damages calculation. Opp'n at 17:1-18. However, whether or not Plaintiff sufficiently disclosed its calculation is irrelevant because monetary damages is not the only manner in which a party can suffer injury under the Lanham Act. See Lexmark Int'l, Inc. v. Static Control Components, Inc.,
Here, Plaintiff has provided evidence to show that Defendants' false statements on their website have lessened the goodwill in the MK brand, including that Plaintiff no longer has control over its business reputation. See Szurgot Decl. ¶ 12 ("The use by another of MK's goodwill, including their use of [MK Marks], MK's history and MK's projects and accomplishments ... dilutes AECOM's legacy and diminishes AECOM's right and ability to market the heritage of MK as one of the great American companies that helped make AECOM what it is today."); Kassal Decl. ¶ 7 ("Defendants are sullying AECOM's hard earned reputation."). As Defendants do not provide any evidence to the contrary, there is no triable issue that Plaintiff has suffered and is likely to continue to suffer injury in the loss of its goodwill in the MK brand.
Accordingly, the Court GRANTS Plaintiff's Motion for Summary Judgment on its false advertising claim as to all Defendants. Because Plaintiff is successful on its false advertising claim, the Court also GRANTS Plaintiff's Motion as to the claims for: (1) California Common Law Unfair Competition; (2) California Statutory Unfair Competition; and (3) California Statutory False Advertising.14
d. Cyberpiracy
To succeed on a claim for cyberpiracy under
First, it is undisputed that Defendant Morrison Knudsen Corporation registered two domain names on March 25, 2008: www.morrison-knudsen.com and www.morrison-knudsen.net. See Torres Decl. ¶ 7, Exs. E-F, Whois Lookup. Defendants also do not dispute that this is the same website used by all of the Defendants.
Second, these names are identical to the MK Marks. See GoPets,
While these domain names are identical, Plaintiff must also show the Morrison Knudsen name was a distinctive mark at the time of registration. A registered trademark is presumed to be distinctive. Zobmondo Entm't, Ltd. Liab. Co. v. Falls Media, Ltd. Liab. Co.,
Finally, Plaintiff must prove that Defendants had a "bad faith intent to profit" from the MORRISON KNUDSEN mark when they registered their domain name.
There is ample evidence of each Defendants' bad faith intent to profit. The first factor looks at the intellectual property rights in the domain name. See
The fifth factor looks to "the person's intent to divert consumers from the mark owner's online location to a site accessible under the domain name that could harm the goodwill represented by the mark ...". See
Defendants do not offer any evidence creating a triable issue that they did not demonstrate a bad faith intent to profit from the MK Marks, and instead only argue that before the cancellation of the MK Marks in 2016, Plaintiff had started letting the MK Marks cancel as early as 2002. SGDF ¶ 11. This argument fails for the same reason Defendants' abandonment defense fails. See supra Section II.B.4.b. Accordingly, the Court GRANTS summary judgment on this claim as to all Defendants.
e. Cancellation of Registered Mark
The Lanham Act permits cancellation of a registered trademark on the basis of fraud.
Plaintiff provided undisputed facts showing false representations were made to the USPTO regarding the MK Marks. Defendant Morrison Knudsen Corporation made false representations to the USPTO by assigning
As to the second element, Defendants argue that there is a genuine issue whether they knew of the falsity of the representations. Plaintiff argues that in making the representations, Morrison Knudsen Corporation knew they were falsely claiming ownership of the MK Marks. Plaintiff relies on the deposition testimony of Defendant Topolewski, that, despite Defendant Morrison Knudsen Corporation's claim their first use of the Marks was in 1933, Topolewski had not heard of Morrison Knudsen until "[m]aybe 2007," that none of the other Defendants ever used the MK Marks prior to 2008, and that none of the Defendants have ever actually used the MK Marks for construction services. Torres Decl. ¶ 5, Ex. B, at 59, 134-135.
Defendants argue Topolewski was only testifying for himself personally, not as the *106030(b)(6) witness for the Corporate Defendants, so his testimony is only speculative as to the Corporate Defendants' knowledge. SGDF ¶ 13. However, Defendant Topolewski has served as an officer for several of the Corporate Defendants,16 and at the time both representations to the USPTO were made he was an officer of Morrison Knudsen Corporation. Torres Decl. Ex. R, at 1034. Additionally, the Corporate Defendants did not designate a witness to dispute any of Topolewski's testimony.
There is also no genuine issue of material fact as to the remaining elements. The false representations to the USPTO were made in order to receive a trademark registration, the USPTO granted the registration in reliance on the false statements, and it resulted in harm to Plaintiff as it lost control over MK's identity, goodwill, and intellectual property rights. Consequently, the Court GRANTS Plaintiff's Motion for Summary Judgment as to this claim and cancels Defendants' registration.
f. Defendants' Equitable Defenses Fail
Defendants put forth one argument that Plaintiff waited nine years to bring this Action, to cover the defenses of estoppel, waiver, laches, unclean hands, and acquiescence. Opp'n at 21:5-10. This is insufficient to establish any of the defenses, as Defendants have not put forth evidence of the required elements of each defense.17 See Devereaux v. Abbey,
Moreover, Defendants rely solely on Plaintiff's 30(b)(6) witness, Charles Szurgot, as evidence that Plaintiff waited nine years to bring this Action. Defendants rely on deposition testimony stating that Plaintiff has had outside and in-house counsel maintain its portfolio of registered marks to argue that it is logical Plaintiff knew of Defendants' actions when they changed the records with the USPTO. Sherman Decl. ¶¶ 12-16;
5. Permanent Injunction
A prevailing plaintiff seeking a permanent injunction must show: "(1) that it has suffered an irreparable injury; (2) that remedies available at law, such as monetary damages, are inadequate to compensate for that injury; (3) that, considering the balance of hardships between the plaintiff and defendant, a remedy in equity is warranted; and (4) that the public interest would not be disserved by a permanent injunction." La Quinta Worldwide LLC v. Q.R.T.M., S.A. de C.V.,
Here, Plaintiff has demonstrated success on the merits. If an injunction were not granted, Plaintiff would suffer irreparable injury from the ongoing damage to its goodwill as a result of Defendants' deceptive tactics to take over the MK brand.18 See Herb Reed Enters., LLC v. Florida Entertainment Management,
*1062Internet Specialties West, Inc. v. Milon-DiGiorgio Enters., Inc.,
6. Damages
For violations of section 1125(a) or (d) of the Lanham Act, a plaintiff may recover "(1) defendant's profits, (2) any damages sustained by plaintiff, and (3) the costs of the action."
A court may award disgorgement of profits under the Lanham Act where there is willful infringement. Stone Creek, Inc. v. Omnia Italian Design, Inc.,
To demonstrate willful infringement, a party only needs to show "a connection between a defendant's awareness of its competitors and its actions at those competitors' expense." Fifty-Six Hope Rd. Music v. A.V.E.L.A., Inc.,
Here, Plaintiff has offered ample evidence of each Defendants' willful infringement by their efforts in taking over the MK brand. Defendants Morrison-Knudsen Services and Morrison Knudsen Corporation (formally MK Viet Nam) both assumed the identify of original MK entities. Defendant Topolewski was the one who revived MK Viet Nam in 2014 (later changed to Morrison Knudsen Corporation) and signed under penalty of perjury that he was authorized by a court or the entity to do so. Torres Decl. ¶ 20, Ex. R, at 1033-35. And Defendants Morrison-Knudsen International Inc. and Morrison Knudsen Company, Inc. both changed their names to assume an MK identity. No one affiliated with the original MK, URS, or AECOM gave any of the Defendants permission to do so. Szurgot Decl. ¶ 13.
With respect to profits, a "plaintiff shall be required to prove defendant's sales only ; defendant must prove all elements of cost or deduction claimed."
During discovery, Plaintiff sought financial information to calculate damages in its Requests for Production ("RFP") Nos. 19, 20, 2119 and Interrogatory No. 15.20 Order re Mot. for Contempt. 9:4-8, 11:27-12:5, 13:22-24, ECF No. 154. On April 26, 2018, after Defendants' failure to provide such information, the Court ordered Defendants to provide supplemental discovery responses by May 15, 2018 [118].
Upon realizing Defendants would not provide Plaintiff further information, Plaintiff served its Supplemental Disclosure on July 17, 2018, including the three press releases. Even though the Court found that the two-page financial statement Defendants initially provided was inadequate, Plaintiff has conceded that in the absence of any showing of costs by *1064Defendant, Plaintiff will accept the summary's showing of Defendants' total costs and expenses for 2013-2016 as REDACTED . Torres Decl. ¶ 15, Ex. M, 930-31, ECF No. 178-1. The two-page financial summary was put forth collectively by all four Corporate Defendants showing that they claimed to share the total expenses listed from 2013 to 2016.
In light of the significant amount of damages Plaintiff is seeking, the Court is more hesitant to rely solely on the press releases than it would be if there was a lesser amount at stake. However, Defendants do not offer any evidence or argument disputing Plaintiff's calculation of REDACTED , or offer any alternative calculation. Plaintiff clearly stated as an uncontroverted fact in its SUF that "Defendants have claimed to earn revenue totaling REDACTED " by issuing the three press releases. Nowhere in Defendants' SGDF or Opposition did they dispute the amount or deny earning the contracts. Defendants did not raise a genuine issue as to the accuracy of the press releases, or as to the amount the press releases state that Defendants were "awarded." The Court finds this telling.22 The only genuine issue Defendants raised as to damages was that Plaintiff did not disclose the press releases until after the close of discovery. See SGDF ¶ 6; Opp'n at 21:14-27. However, the Court has already rejected this argument and has deemed the press releases admissible. See supra, section II.B.2.b.
With no genuine issue raised by Defendants as to the amount, there is no other basis to compute damages than what Plaintiff has provided. Damages must only "be established with reasonable certainty," and they are not precluded merely "because they cannot be calculated with absolute exactness" so long as "a reasonable basis for computation ... exist[s]." Lindy Pen Co.,
Given Defendants' failure to comply throughout discovery and failure to raise a genuine issue as to damages, Plaintiff has met its burden of establishing Defendants' revenue. Without any argument or evidence provided by Defendant as to costs, the Court accepts Plaintiff's calculation for the total profits as REDACTED . Thus, the Court GRANTS Plaintiff's request for disgorgement of profits in the amount of REDACTED .
7. Attorneys' Fees
"The court in exceptional cases may award reasonable attorney fees to the prevailing party."
III. CONCLUSION
Based on the foregoing, the Court GRANTS Plaintiff's Motion for Summary Judgment and Permanent Injunction in its entirety against Defendants Gary Topolewski, Morrison Knudsen Corporation, Morrison-Knudsen Company, Inc., Morrison-Knudsen Services, Inc., and Morrison-Knudsen International Inc. All dates currently on calendar are vacated. The Court declines to enter a final judgment until a Motion for Default Judgment is brought and a decision is made as to the remaining defaulting Defendants: Todd Hale, John Ripley, Bud Zukaloff, and Henry Blum.
IT IS SO ORDERED.
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