Belk, Incorporated v. Meyer Corporation, U.S.

679 F.3d 146, 82 Fed. R. Serv. 3d 373, 102 U.S.P.Q. 2d (BNA) 1805, 2012 WL 1592977, 2012 U.S. App. LEXIS 9319
CourtCourt of Appeals for the Fourth Circuit
DecidedMay 8, 2012
Docket10-1664
StatusPublished
Cited by161 cases

This text of 679 F.3d 146 (Belk, Incorporated v. Meyer Corporation, U.S.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Belk, Incorporated v. Meyer Corporation, U.S., 679 F.3d 146, 82 Fed. R. Serv. 3d 373, 102 U.S.P.Q. 2d (BNA) 1805, 2012 WL 1592977, 2012 U.S. App. LEXIS 9319 (4th Cir. 2012).

Opinion

Affirmed by published opinion. Judge DAVIS wrote the opinion, in which Judge DUNCAN and Judge KEENAN joined.

OPINION

DAVIS, Circuit Judge:

In May and June 2010, Appellee Meyer Corporation, U.S., (“Meyer”) 1 and Appellants Belk, Incorporated, and Belk International, Incorporated (collectively, “Belk”), clashed in a nine-day trial with eighteen witnesses who educated the jury at length about the design, creation, marketing and profitability of high-end cookware. At the conclusion of trial, the district court entered judgment in accordance *151 with the jury’s verdict in favor of Meyer on its claims of trade dress infringement, see 15 U.S.C. § 1125(a), and unfair and deceptive trade practices, see N.C. Gen. Stat. § 75-1.1. 2 The court trebled the damages amount found by the jury to $1,260,000 pursuant to N.C. GemStat. § 75-16 and denied Belk’s remaining requests for declaratory relief.

Belk failed to file a postverdict motion pursuant to either Federal Rule of Civil Procedure 50(b) or 59 and instead directly appealed, timely to be sure, to this court. On appeal, Belk asserts the district court erred in numerous respects, including its failure to recognize the insufficiency of the evidence to support Meyer’s claims and other errors relating to evidentiary and legal rulings. Finding no error on the issues that are properly preserved, we affirm the judgment of the district court.

I.

A.

Meyer is a supplier of cookware products designed, developed and manufactured through Meyer-affiliated companies, including cookware marketed under the brand name “Anolon Advanced.” Belk owns and operates retail department stores in the southeastern United States that sell a variety of items, including kitchen appliances and cookware products. Belk is a former customer of Meyer, having previously sold Meyer’s other branded lines of cookware.

In 2007, Belk began selling its own private-label cookware, under license from the Biltmore Company, the entity owning various trademarks, copyrights and other proprietary rights associated with “Biltmore House” and “Biltmore Estate,” the famous private residence in North Carolina (“the Biltmore line”). Meyer discovered that Belk was selling the Biltmore line in its stores, and, through a so-called cease-and-desist letter, notified Belk that it believed the line infringed Meyer’s trade dress in the Anolon Advanced line and rights in design patents pertaining to that line, and that Belk was engaged in false advertising, unfair competition and numerous other commercial torts.

Thus, the inevitable race to the courthouse was triggered. Belk subsequently filed a civil action in the United States District Court for the Western District of North Carolina seeking a declaratory judgment that the Biltmore line did not infringe certain Meyer-held patents or Meyer’s trade dress, that certain of Meyer’s patents were not enforceable, and that Belk did not engage in false advertising, unfair competition, or commit any commercial torts against Meyer by marketing, advertising and selling the Biltmore line. Meyer filed a civil action against Belk in the United States District Court for the Northern District of Georgia, alleging claims of patent infringement, trade dress infringement and unfair and deceptive trade practices under state law. Meyer’s action was transferred to the district court below and consolidated with Belk’s declaratory judgment action.

After a nine-day trial, the jury found that Belk infringed Meyer’s trade dress in the Anolon Advanced line and determined that Meyer suffered $420,000 in damages as a result of Belk’s trade dress infringement. With respect to Meyer’s claim under North Carolina law for unfair and deceptive trade practices, the jury ren *152 dered a verdict in favor of Meyer, finding that

• Belk distributed, marketed and sold a private-label cookware line, the Biltmore line, that was “deceptively similar” to Meyer’s Anolon Advanced cookware line;
• Belk did so after receiving product, sales and market information, as well as images and samples of products of the Anolon Advanced line;
• Belk purchased a cookware design from a third party that was “deceptively similar” to the Anolon Advanced line, even after learning that proposed designs provided by the third party were being sold by Meyer;
• Belk’s conduct was in commerce or affected interstate commerce; and
• Belk’s conduct was the proximate cause of Meyer’s injury. 3

After the jury rendered its verdict, the district court observed that the jury had made its findings regarding Meyer’s claim for unfair and deceptive trade practices and invited argument from the parties as to whether those findings were sufficient as a matter of law to establish that Belk had engaged in unfair and deceptive trade practices under North Carolina law. After argument, which we discuss below in detail, the district court determined that, based on the jury’s findings, Belk engaged in unfair and deceptive trade practices as a matter of law and that Meyer was entitled to treble damages.

On June 8, 2010, the court entered judgment in accordance with the jury’s verdict; it denied the remainder of Belk’s requests for declaratory relief and trebled the award of damages found by the jury, $420,000, to $1,260,000.

In the twenty-eight day period following the entry of judgment, which is the time limit for filing a renewed motion for judgment under Rule 50(b), Belk filed only one motion in the district court, namely, a motion seeking the grant of a supersedeas bond and stay of judgment pending appeal. Belk did not file a motion under Rule 50(b) during that period.

B.

Given the centrality of issue preservation in this appeal, we lay out clearly the challenges Belk raises on appeal. First, Belk contends that the district court erred in denying its motion for judgment as a matter of law because the evidence is insufficient to show trade dress infringement (“sufficiency of the evidence challenge”). In the course of discussing the insufficiency of the evidence, particularly on whether the trade dress had acquired secondary meaning, Belk raises a second contention, namely, that Meyer’s expert was not properly qualified to testify with respect to trade dress consumer surveys and that his testimony and survey were scientifically unreliable (“evidentiary challenges”).

Third, Belk contends that the district court erred with regard to the state unfair and deceptive trade practices claim (“UDTPA challenges”). In particular, Belk contends that the district court erred in two respects: (1) tendering unfair competition issues to the jury that as a matter of law are not unfair and deceptive trade practices; 4

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679 F.3d 146, 82 Fed. R. Serv. 3d 373, 102 U.S.P.Q. 2d (BNA) 1805, 2012 WL 1592977, 2012 U.S. App. LEXIS 9319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/belk-incorporated-v-meyer-corporation-us-ca4-2012.