AFAB INDUSTRIAL SERVICES, INC. v. PAC-WEST DISTRIBUTING NV LLC

CourtDistrict Court, E.D. Pennsylvania
DecidedOctober 23, 2023
Docket2:19-cv-00566
StatusUnknown

This text of AFAB INDUSTRIAL SERVICES, INC. v. PAC-WEST DISTRIBUTING NV LLC (AFAB INDUSTRIAL SERVICES, INC. v. PAC-WEST DISTRIBUTING NV LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AFAB INDUSTRIAL SERVICES, INC. v. PAC-WEST DISTRIBUTING NV LLC, (E.D. Pa. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

AFAB INDUS. SERV., INC, : Plaintiff : CIVIL ACTION v : PAC-WEST DISTRIB. NV LLC, ef af, No. 19-0566 Defendants : PAC-WEST DISTRIBUTINGNVLLC, Plaintiff : CIVIL ACTION v. : AFAB INDUSTRIAL SERVICES, INC., et : No. 19-3584 Defendants : MEMORANDUM yo PRATTER, J, OCTOBER LY 2023 The parties in these two actions each sell chemical compounds labeled and marketed for cleaning and cosmetic uses. They previously litigated the use of certain trademarks and trade dress, resolving their dispute through a 2016 settlement agreement. Then, in 2019, the parties each brought new actions against one another, alleging various claims and counterclaims of trademark and trade dress infringement, breach of contract, false advertising, and unfair competition. Pac- West demanded jury trials in both suits. AFAB initially demanded a jury trial on its claims in the action it initiated (Civ. No. 19-0566). Now, nearly four years later, AFAB has moved to strike these jury demands and proceed with a bench trial on all claims, arguing that each form of relief Pac-West seeks is strictly equitable. In reply, Pac- West argues that several of its claims are legal in nature and thus has a right under the Seventh Amendment to have them—and any facts common to those claims and its equitable claims—heard by a jury. Though Pac-West seeks both equitable

and legal relief, the inclusion of the former does not subsume the Seventh Amendment right to a trial by jury for the latter. Therefore, the Court denies AFAB’s motion to strike. BACKGROUND The Court writes for the benefit of the parties and assumes basic familiarity with the facts of this dispute. See Pac-West Distrib. NV LLC v. AFAB Indus. Servs., Inc., No. 19-cv-3584, 2020 WL 4470447, at *1—*2 (E.D. Pa. Aug. 4, 2020). LEGAL STANDARD The Federal Rules of Civil Procedure permit a civil litigant to demand a jury trial on any claims or issues for which the Seventh Amendment confers a right to a jury trial. Fed. R. Civ. P. 38(a). The Seventh Amendment right has been interpreted to attach only to suits asserting legal claims, as opposed to claims sounding in equity. See Granfinanciera, S_A. v. Nordberg, 492 US. 33, 41 (1989) (citing Parsons v. Bedford, 3 Pet. 433, 447 (1830)). If an action asserts both legal and equitable claims, the Seventh Amendment jury right may attach to all legal claims on an issue- by-issue basis. See Dairy Queen, Inc. v. Wood, 369 U.S. 469, 473 (1962) (citing Beacon Theatres, Ine, v. Westover, 359 U.S. 500 (1959)). And where legal and equitable claims raise common questions of fact, those questions ought first be decided by a jury before a court may rule on the equitable claims. See Beacon Theatres, 359 U.S. at 510-11, In deciding a motion to strike a jury demand, the Court’s task is a narrow one. Such is it here, The Court must review each of the pending claims, the relief sought for each, and determine which are legal in nature and which are not. When an earlier court ruling has dismissed a legal claim or foreclosed the availability of a remedy at law, the Seventh Amendment jury right may no longer attach to that claim. See, e.g., AstenJohnson, Inc. v. Columbia Cas. Co., 562 F.3d 213, 222 (3d Cir. 2009) (holding that a district court “may strike a jury demand without offending the Seventh Amendment” when “a party cannot tender evidence essential to its only legal claim’’);

AstraZeneca LP y. Tap Pharm. Prods., Inc., 444 F. Supp. 2d 278, 288 (D. Del. 2006) (Jordan, J.). But a motion to strike a jury demand is not itself an appropriate avenue for a party to attack the legal sufficiency of a claim or the evidence presented in support thereof; those matters must be resolved via a motion to dismiss or a motion for summary judgment. See, e.g., Libbey Glass, inc. v. Oneida Lid, No, 98-cv-439, 1999 WL, 684180, at *3 (N.D. Ohio July 12, 1999), HISTORY AND PURPOSE OF THE SEVENTH AMENDMENT The Seventh Amendment provides that “Ji]n suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, ...” U.S. Const. amend, VII. However, “the common-law forms of action recognized in 1791” are not the only actions covered by the Seventh Amendment. Chauffeurs, Teamsters & Helpers, Local No, 391 v. Terry, 494 558, 564 (1990). Instead, “‘[s]uits at common law’ refers to ‘suits in which legal rights [are] to be ascertained and determined, in contradistinction to those where equitable rights alone [are] recognized, and equitable remedies [are] administered.’” Jd. (quoting Parsons v. Bedford, 3 Pet. 433, 447 (1830)). And “[t]he right extends to causes of action created by Congress.” id, at 564-65. “Whether the right to a jury trial applies depends upon ‘the nature of the issue. □ □ rather than the character of the overall action.’” Small v. Camden Cnty., 728 F.3d 265, 269 (3d Cir. 2013) (quoting Ross v. Bernhard, 396 U.S. 531, 538 (1970)). To determine whether a claim is equitable or legal, a court must (1) “compare the statutory action to 18th-century actions brought in the courts of England prior to the merger of the courts of law and equity” and (2) “examine the remedy sought and determine whether it is legal or equitable in nature.” Granfinanciera, 492 U.S. at 42 (quoting Tull v. United States, 481 U.S. 412, 417-18 (1987)). “The second stage of this analysis is more important than the first,” and “[i]f, on balance, these two factors indicate that a party is entitled to a jury trial under the Seventh Amendment, [the

court] must decide whether Congress may assign and has assigned resolution of the relevant claim to a non-Article [J] adjudicative body that does not use a jury a factfinder.” Id. For almost one hundred years, the Supreme Court has reiterated that “[m]aintenance of the jury as a fact-finding body is of such importance and occupies so firm a place in our history and jurisprudence that any seeming curtailment of the right to a jury trial should be scrutinized with the utmost care.” Chauffers, 494 U.S, at 565 (quoting Dimick vy. Schiedt, 293 US. 474, 486 (1935)). Even in England before the founding of the United States, William Blackstone wrote that the jury was “the glory of the English law” and “the best criterion, for investigating the truth of facts, that was ever established in any country.” Darrell A.H. Miller, Text, History and Tradition: What the Seventh Amendment Can Teach Us About the Second, 122 Yale L.J. 852, 873 (Jan. 2013) (quoting 3 William Blackstone, Commentaries *379, *385). And in the nascent days of the American Republic, Thomas Jefferson wrote in 1789 that he regarded “trial by jury as the only anchor ever yet imagined by man, by which a government can be held to the principles of its constitution.” Jd. at 874 (quoting Letter from Thomas Jefferson to Thomas Paine, 1789, in 7’ The Writings of Thomas Jefferson 408 (Albert Ellergy Bergh ed., 1905)).

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AFAB INDUSTRIAL SERVICES, INC. v. PAC-WEST DISTRIBUTING NV LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/afab-industrial-services-inc-v-pac-west-distributing-nv-llc-paed-2023.