American Diabetes Ass'n v. Friskney Family Trust, LLC

177 F. Supp. 3d 855, 2016 WL 1359583, 2016 U.S. Dist. LEXIS 46523
CourtDistrict Court, E.D. Pennsylvania
DecidedApril 6, 2016
DocketCIVIL ACTION No. 13-3720
StatusPublished
Cited by18 cases

This text of 177 F. Supp. 3d 855 (American Diabetes Ass'n v. Friskney Family Trust, 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
American Diabetes Ass'n v. Friskney Family Trust, LLC, 177 F. Supp. 3d 855, 2016 WL 1359583, 2016 U.S. Dist. LEXIS 46523 (E.D. Pa. 2016).

Opinion

MEMORANDUM OPINION

Goldberg, District Judge

This case involves the second trademark infringement lawsuit between the parties. In the current suit, Plaintiff, American Diabetes Association (“ADA”), has filed various Lanham Act claims against Defendants, Robert L. Friskney (“Friskney”), the Friskney Family Trust (“FFT”), and Medvantage Plus, LLC (“Medvantage”). Plaintiff also brings a breach of contract claim against Friskney and FFT stemming from a settlement agreement entered into by the parties in their first lawsuit, Am. Diabetes Ass’n v. ADS Med. Servs., Inc., et al., Dkt. No. 12-cv-3354.

In that case, Plaintiff sued Friskney and FFT’s predecessors-in-interest, ADS Medical Services, Inc. and American Diabetes Services, Inc. (collectively, “ADS”) for alleged violations of the Lanham Act (“ADS litigation”). Plaintiff had accused ADS of infringing upon the “American Diabetes Association” trademark registered with the United States Patent and Trademark Office by using the “confusingly similar” marks “American Diabetes,” “American Diabetes Services,” and similar website domain names, such as “americandia-betes.com.” That case was resolved by the parties through a comprehensive written settlement agreement, which included both Friskney and FFT.1

In the current dispute, Plaintiff alleges that Friskney and FFT violated the settlement agreement, giving rise to a breach of contract claim (Count I) against both Defendants (Medvantage, a defendant here, was not a party to the previous litigation or Settlement Agreement, and therefore, Plaintiff has not included a breach of contract claim against Medvantage). Plaintiff has also renewed its Lanham Act claims against all three Defendants, alleging: trademark infringement under § 32(1), 15 U.S.C. 1114(1) (Count II), false designation of origin under § 43(a), 15 U.S.C. 1125(a) (Count III), and cyberpiracy2 under § 43(d), 15 U.S.C. 1125(d) ■ (Count IV). Plaintiff has included a claim for unfair competition under Pennsylvania common law against the same three Defendants (Count V). (Compl. ¶¶ 44 — 77.)3 Defendants [862]*862have filed counterclaims for breach of contract (Count I) and reverse domain name hijacking (Count II), (Friskney 3d Am. Answer ¶¶ 83-93; FFT and Medvantage 3d Am. Answer ¶¶ 83-93.)

Before me are (1) Plaintiffs motion for summary judgment on Defendants’ counterclaims; (2) Friskney and FFT’s motion for summary judgment on liability as to all of Plaintiffs claims; and (3) Medvantage’s motion for summary judgment on Plaintiffs Lanham Act and unfair competition claims. For the reasons that follow, I will grant Plaintiffs motion; grant in part and deny in part Friskney and FFT’s motion; and, grant in part and deny in part Med-vantage’s motion.

I. FACTUAL AND PROCEDURAL BACKGROUND4

The parties resolved their first lawsuit on March 12, 2013 by entering into a Settlement Agreemént (the “Agreement”). Friskney and FFT’s obligations were outlined in Paragraph 5 of the'Agreement, the relevant portions of which state:

Friskney and FFT each agree that they will immediately .cease and refrain from forever using AMERICAN DIABETES ... or any confusingly similar designation, alone or [in] combination with other words, phrases, symbols, or designs, as a ... domain name component^] (Agreement, p. 5 ¶ 5.)
By April 15, 2013, FFT and/or Friskney shall undertake all appropriate measures to cancel, delete, terminate and otherwise remove all reference to their use of AMERICAN DIABETES ... on ah social media channels, including without limitation Twitter-™ (“@AmDiabetes”), [and] Facebook™ (http://www.facebook. com/AmericanDiabetes)[.] (Id. at p. 6 ¶ 5(c).)
No later than January 15, 2014, Frisk-ney shall transfer all title and interest in and to the registration for the AMERI-CANDIABETES.COM domain name to [Plaintiff], and fully cooperate with [Plaintiff] to facilitate the filing and processing of any and all forms and other formalities necessary to complete the transfer[.] (Id. at p. 6 ¶ 5(e).)

Friskney relies heavily on Paragraph 7 of the Agreement, which states:

Subject to Paragraph 5 and for a period of two (2) years, commencing on the Effective Date [March 12, 2013] and ending on January 15, 2015, the FFT will be entitled to the benefits as an authorized sponsor of [Plaintiffs] ‘stop Diabetes® Movement’ program, subject to the terms and conditions set forth in the Sponsorship Agreement, which is annexed as Exhibit C and is made part hereof. (Id. at p. 7 ¶ 7.)

Additionally — and critical to my analysis regarding the parties’ respective breach of contract claims — the Agreement contained the following integration clause:

This Agreement constitutes the entire agreement between the parties pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations, and understandings of the parties. No supplement, modification, or amendment of this Agreement will be binding unless executed in writing by all the parties. (Id. at pp. 10-11 ¶ 20.)

With these provisions in mind, I turn to the undisputed facts of record. The following events occurred chronologically, following execution of the Agreement on March 12, 2013.

[863]*863On March 14, 2013, just two days -after signing the Agreement, Friskney threatened via email to sell the “americandia-betes.com” domain name to -a third party for $38,000. Friskney made this statement after Dexter Cummings, Managing Director of Legal Affairs for Plaintiff, asked to execute a brief amendment to the Agreement because of a date inconsistency. (Pl.’s Ex. B, Doc. No. 53.) This fact will become important in evaluating Friskney’s “good faith and fair dealing,” discussed infra.

Thereafter,' between March 19, 20Í3 and April 3, 2013, Odette Brown, Associate Director of Client Services for Plaintiff, contacted Friskney via telephone and email multiple times in an attempt to coordinate the Sponsorship outlined in Paragraph 7. (Pl.’s Ex. A-l, Doc, No. 70; Brown Decl. ¶¶ 17-27.) On at least one occasion, Frisk-ney asked to reschedule the pair’s conference call, and on other occasions, Friskney did not answer or otherwise return Brown’s phone calls. (Brown Decl. ¶¶ 17-27; Defs.’ Ex. D, Doc. No. 62.)5

The purpose of these attempted contacts was for Brown to gather preliminary information from Friskney (as a new sponsor) so that her team could list FFT on Plaintiffs website. Brown explained that it was necessary to discuss several items with new sponsors to coordinate their being placed on Plaintiff’s website, including: confirmation of the brand to be promoted, including a brief summary and overview of the company; the logo of the sponsor to be featured on Plaintiffs “diabetes.org/stopdi-abetes.com” website; the sponsor’s URL to which the Plaintiffs website would link; and, confirmation of certain dates and milestones for the sponsorship. (Brown Decl.

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Bluebook (online)
177 F. Supp. 3d 855, 2016 WL 1359583, 2016 U.S. Dist. LEXIS 46523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-diabetes-assn-v-friskney-family-trust-llc-paed-2016.