Basile Baumann Prost Cole & Assocs., Inc. v. BBP & Assocs. LLC

875 F. Supp. 2d 511, 2012 WL 2426132, 2012 U.S. Dist. LEXIS 84912
CourtDistrict Court, D. Maryland
DecidedJune 19, 2012
DocketCivil No. WDQ-11-2478
StatusPublished
Cited by5 cases

This text of 875 F. Supp. 2d 511 (Basile Baumann Prost Cole & Assocs., Inc. v. BBP & Assocs. LLC) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Basile Baumann Prost Cole & Assocs., Inc. v. BBP & Assocs. LLC, 875 F. Supp. 2d 511, 2012 WL 2426132, 2012 U.S. Dist. LEXIS 84912 (D. Md. 2012).

Opinion

MEMORANDUM OPINION

WILLIAM D. QUARLES, JR., District Judge.

Basile Baumann Prost Cole & Associates, Inc. (the “Corporation”) sued BBP & Associates LLC (the “LLC”), James Prost, and Ralph Basile (collectively, the “Defendants”) for trademark infringement and other claims. For the following reasons, the Court will deny the Defendants’ motion for summary judgment, and the Corporation’s cross-motion for summary judgment.1

I. Background2

In 1990, Basile, Prost, and Wilbur Baumann formed an economics and real estate consulting firm called Basile Baumann Prost & Associates, Inc. Ralph Basile Decl. ¶ 2; James Prost Dep. 11:7-10, Dec. 2, 2011. Based in Annapolis, Maryland, the company advised local, state, and federal agencies. Answer ¶ 1; Basile Decl. ¶ 3; Prost Dep. 31:1-19. The company referred to itself by the acronyms “BBPA” and “BBP.” Prost Dep. 19:7-20:4; Basile Decl. ¶ 4. In 1995, the company launched the website www.bbpa.com. Answer ¶¶ 29-30.

As the business developed, Basile and Prost worked mostly with state and local governments and institutions. Basile Decl. ¶ 3. Baumann devoted most of his time to projects with the U.S. Navy. Id.

In 2006, Baumann sold his share of the company to R. Thomas Cole, see Answer ¶ 15, and the company changed its name to Basile Baumann Prost Cole & Associates, Inc. (hereinafter the “Corporation”), see Prost Dep. 29:2-10; Basile Decl. ¶ 4. The Corporation began to refer to itself as “BBPC,” see Answer ¶ 31, and developed a logo using that acronym:

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ECF No. 23-1, Ex. O. The logo appeared on the Corporation’s business cards:

[516]*516[[Image here]]

ECF No. 22-1, Ex. Q. The parties dispute whether the Corporation continued to refer to itself by the acronyms “BBPA” or “BBP.”3 Its website remains www.bbpa. com.

The Corporation’s marketing materials have included lists of awards the firm has received, see ECF No. 23-1, Ex. FF, and client testimonials, such as:

BBPC displayed aggressive, well organized efforts to expedite the project .... BBPC went out of their [sic] way ... at short notice to ensure financial documents were finalized.
Phil Wills, Booz Allen Hamilton I have been impressed with the quality of BBPCA’s services as well as their [sic] real estate and joint development expertise ...
Douglas Hale, Joint Development, Washington Metro Area Transit Authority
[T]he firm’s impeccable reputation in the industry make[s] Basile Baumann Prost & Associates, Inc., uniquely qualified
Gary A.' Shepard, Administrator, Pioneer Valley Transit Authority

ECF No. 23-1, Ex. CC; Cole Deck ¶ 36.

By 2009, Basile and Prost had decided that they no longer wanted to work with Cole. Prost Dep. 72:19. The Corporation had 25 employees and its total annual sales exceeded $10 million. Prost Dep. 34:8-17; ECF No. 23-1, Ex. H. Basile and Prost continued to work with smaller state and local governments, and Cole worked mainly with the U.S. Navy. R. Thomas Cole Dep. 120:2-15, Dec. 14, 2011.

On December 31, 2009, Basile, Prost, Cole, and the Corporation entered a Stock Redemption Agreement, whereby the Corporation agreed to redeem Basile and Prost’s shares in exchange for $1.8 million and certain assets, including:

• 83 jobs,
• 138 “leads and proposals,” and
• “[a]ll goodwill created on all past contracts and clients by Basile and Prost [within the last four years] to include but not be limited to any and all use of job qualifications and materials and job references for Basile and Prost’s contracts and clients.”

ECF No. 22-1, Ex. 2 at §§ 1, 2.1.1, 2.2.1, Schedule 2.2.1 (Revised). The Corporation “retain[ed] all [other] assets, properties^] and rights,” including the company name, office location and lease, telephone number, domain name and website, two-thirds of the Corporation’s staff, and 70 percent [517]*517of its contracts by revenue.4 A “Non-competition” covenant provided that, for four years, Basile and Prost would not “in any manner ... actively solicit business from any party who [wa]s currently a prospective client or ha[d] been, at any time during the four ... years prior to the date of [the] Agreement, an active client ... of ... Cole and the Corporation.” Id. at § 8.1. The parties agreed that the Stock Redemption Agreement would be interpreted under Maryland law. Id. at § 11.5.

A separate transfer agreement signed the same day provided that the Corporation was transferring to the LLC its “interests, rights!,] and obligations in certain existing client contracts.” ECF No. 22-1, Ex. 2 at 47.

In an “Addendum to [the] Closing Documents,” the parties added the following provision to the Stock Redemption Agreement:

GOOD WILL. During the Non-Competition Period[,] Cole and [the] Corporation shall not use Basile [and] Prost’s Good Will created on all of Basile and Prost’s contracts and clients [in the last four years], to include but not be limited to any and all use of job qualifications and materials and job references for Basile and Prost’s contracts and clients. During the Non-Competition Period[,] Cole and [the] Corporation shall not use Basile [and] Prost’s Good Will and job qualifications and materials and job references in any further solicitations or proposals to state and local governmental agencies and entities and assigns, etc[.]
However, Cole and [the] Corporation shall retain all of Cole and the Corporation’s Department of Defense, Air Force, Army, Navy[,] and Coast Guard Good Will, and may use all of their Good Will and job qualifications and materials for their future solicitations or proposals, including Basile [and] Prosts’s job qualifications and materials for Army and Navy and Air Force work assignments.
During the Non-Competition Period Basile [and] Prost shall not use Cole and the Corporation’s Good Will created on all of Cole’s past contracts and clients [in the last four years], to include but not be limited to any and all use of job qualifications and materials and job references for Cole’s contracts and clients.

ECF No. 22-1, Ex. 2 at 49. The parties further provided that

Cole and [the] Corporation [would] retain all of [their] Department of Defense, Air Force, Army, Navy and Coast Guard Good Will, and [would be able to] use all of their Good Will and job qualifications and materials for their federal practice areas, and [would] continue to work on Department of Defense, Air Force, Army, Navy and Coast Guard jobs ... free from competition from [Basile and Prost].
[Basile and Prost] [would] retain all of [their] state and local Good Will and [would be able to] use all of their Good Will and job qualifications and materials for their state and local practice areas and [would] continue to work on state and local government entities and assigns!’] jobs ... free from competition [518]

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Cite This Page — Counsel Stack

Bluebook (online)
875 F. Supp. 2d 511, 2012 WL 2426132, 2012 U.S. Dist. LEXIS 84912, Counsel Stack Legal Research, https://law.counselstack.com/opinion/basile-baumann-prost-cole-assocs-inc-v-bbp-assocs-llc-mdd-2012.