Alliant Energy Corp. v. Alltel Corp.

344 F. Supp. 2d 1176, 2004 U.S. Dist. LEXIS 23157, 2004 WL 2579831
CourtDistrict Court, S.D. Iowa
DecidedNovember 15, 2004
Docket4:02 CV 90511
StatusPublished
Cited by4 cases

This text of 344 F. Supp. 2d 1176 (Alliant Energy Corp. v. Alltel Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alliant Energy Corp. v. Alltel Corp., 344 F. Supp. 2d 1176, 2004 U.S. Dist. LEXIS 23157, 2004 WL 2579831 (S.D. Iowa 2004).

Opinion

MEMORANDUM OPINION AND ORDER

PRATT, District Judge.

Before the Court are three motions for summary judgment. The first is Defendant’s Motion for Partial Summary Judgment on its Counter-claim against the Plaintiff. (Clerk’s No. 18). The second is Defendant’s Motion for Partial Summary Judgment on Plaintiffs Declaratory Judgment Request. (Clerk’s No. 86). The third is Plaintiffs Motion for Partial Summary Judgment on its breach of contract claims and request for declaratory relief. (Clerk’s No. 90). The motions have been fully submitted and oral argument on all motions was held on October 7, 2004. Jurisdiction is proper under 28 U.S.C. § 1332, as there is complete diversity be *1179 tween the parties and the amount in controversy exceeds $75,000.

I. BACKGROUND

Plaintiff, Affiant Energy Corporation (“AEC”), is a Wisconsin utility holding company that has controlling investments in companies engaged in the business of supplying public utility services to customers in Wisconsin, Iowa, Minnesota, and Illinois. Defendant, Alltel Corporation (“Alltel”), is a Delaware corporation engaged in, among other things, the business of supplying telecommunications utility services in various states across the United States, including Iowa. The relationship between the parties that eventually led to the present lawsuit began on April 29, 1998, when the Defendant filed a now settled trademark infringement suit against the Plaintiff in the United States District Court for the Southern District of Iowa. See Aliant Communications, Inc. v. Interstate Energy Corp., Case No. 1-98-CV-80027.

Regarding the previous litigation, Aliant Communications, now Defendant, had a registered trademark, since 1996, in various “Aliant” marks. Interstate Energy Corp., now Plaintiff, had completed a merger and announced its new name, Affi-ant Energy Corporation. Due to the similarity between Plaintiffs announced name and Defendant’s registered trademark, the trademark infringement suit was filed. The suit was dismissed on October 1, 1998, when the parties entered into a Settlement Agreement (“Agreement”). The meaning and interpretation of this Agreement is the subject of the motions now before this Court. In addition to territorial restrictions, the Agreement generally provided that Defendant could use the “Aliant” mark freestanding, while Plaintiff could only use Affiant in combination with the word Energy. After the Agreement was signed, Plaintiff completed registration of its currently held trademarks, “Affiant Energy” and “Affiant Energy Resources,” and Defendant continued business under its name, Aliant. Under the Agreement, Plaintiff was to pay Defendant $4,000,00o 1 . The specifics of the Agreement will be discussed more thoroughly infra.

On May 13, 1999, Defendant sold only its Canadian rights, as opposed to its United States rights, in the “Aliant” marks to a Canadian company (“Aliant Canada”). The Agreement between AEC and Alltel was mentioned, but not affected, as Canadian territory is not covered in the Agreement. On July 2, 1999, Defendant was involved in a reverse triangular merger, whereby Aliant became a wholly owned subsidiary of Alltel. 2 It is at this time that questions of abandonment of the “Aliant” marks become relevant. After Alltel acquired Aliant, a rebranding plan developed and was implemented to announce the acquisition to the public and to effectuate the name change. Alltel issued a press release on September 15, 1999, which stated the following:

ALLTEL Name Goes up in Nebraska. ALLTEL officially comes to Nebraska on September 20 ... following Aliant shareholder approval in April and regulatory approval by the Federal Communications Commission in July, the company began the process of changing its name to ALLTEL. The process will be completed September 20, when retail lo *1180 cations, vehicles and buildings will display the new ALLTEL identity.

At approximately the same time, Plaintiff and Defendant entered into correspondence discussing abandonment and the acquisition by Plaintiff of Defendant’s rights in the “Aliant” marks. A December 22, 2000, letter from AEC referenced telephone conversations between the Plaintiff and Defendant concerning the purchase of the “Aliant” marks by AEC. Plaintiff never purchased Defendant’s rights in the “Ali-ant” marks, nor did Defendant ever concede abandonment to the Plaintiff during this time.

On February 8, 2001, Defendant entered into an assignment trademark agreement (“Canadian Agreement”) with Aliant Canada, transferring any and all rights and goodwill that Defendant had in the “Ali-ant” marks to Aliant Canada. The assignment was recorded by the United States Patent and Trademark Office (“PTO”) on April 20, 2001. Plaintiff learned of the Canadian Agreement February 13, 2001, and made the installment payment on the Settlement Agreement on October 1, 2001. Plaintiff also engaged Aliant Canada in discussions of whether the terms of the Settlement Agreement would be upheld. On January 10, 2002, Aliant Canada agreed to abide by the terms of the Settlement Agreement, “on the understanding that [AEC] will continue to comply with the Agreement.” See Clerk’s No. 98 at 5.

Plaintiff filed the present Complaint on October 1, 2002, the same day that the final installment on the Settlement Agreement was due to Defendant. The Complaint alleges two breaches of contract: 1) Alltel’s refusal to admit abandonment; and 2) Alltel’s assignment of trademark rights in the “Aliant” marks to Aliant Canada without disclosing the terms of the Agreement. Plaintiff further requested that this Court issue a declaratory judgment that Defendant abandoned the “Aliant” family of marks prior to February 8, 2001. Defendant denied the allegations in the Complaint and counter-claimed for payment of $625,000, the final installment due on the Settlement Agreement. Since the filing of the Complaint, Aliant Canada has filed two trademark applications and formal statements on its intent to use. 3 Defendant has moved for summary judgment on its counter-claim and for summary judgment to deny Plaintiffs request for declaratory relief. Plaintiff has moved for summary judgment on its two counts of contract breach, declaratory request, and dismissal of Defendant’s counter-claim.

The parties have very different ideas about their respective duties under the Agreement and the relevance of abandonment to these proceedings. Plaintiff claims that a finding of abandonment is crucial to every issue before the Court, while the Defendant claims that, as a matter of law, abandonment has no bearing on this case. It is with these facts in mind that the Court examines these motions for summary judgment and sets out to interpret the Agreement between the parties.

II. LEGAL STANDARDS

Federal Rule of Civil Procedure

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Cite This Page — Counsel Stack

Bluebook (online)
344 F. Supp. 2d 1176, 2004 U.S. Dist. LEXIS 23157, 2004 WL 2579831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alliant-energy-corp-v-alltel-corp-iasd-2004.