BioOrigyn LLC v. Fairhaven Health LLC

District Court, W.D. Washington·Decided June 3, 2021·No. 2:20-cv-00285·Unknown

Opinion

HONORABLE RICHARD A. JONES 1

6 UNITED STATES DISTRICT COURT 7 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 8 BIOORIGYN, LLC, and JOANNA 9 ELLINGTON CLIFTON, 10 Case No. 2:20-cv-00285-RAJ Plaintiffs,

11 ORDER v. 12 FAIRHAVEN HEALTH, LLC, 13 Defendant. 14 15 I. INTRODUCTION This matter comes before the Court on Defendant’s Motion to Dismiss or, in the 16 Alternative, Motion for Partial Summary Judgment (Dkt. # 23) and the parties’ respective 17 motions to seal (Dkt. ## 52, 56). Having considered the submissions of the parties, the 18 relevant portions of the record, and the applicable law, the Court finds that oral argument 19 is unnecessary. For the reasons below, Defendant’s dispositive motion is GRANTED in 20 part (Dkt. # 23), and the parties’ motions to seal are GRANTED (Dkt. ## 52, 56). 21 22 II. BACKGROUND Plaintiff Joanna Ellington is a scientist specializing in reproductive and genital 23 health. Dkt. # 1 ¶ 19. In 2001, she formed a company, Plaintiff BioOrigyn LLC, that 24 offers “fertility-friendly” and feminine care products. Id. Initially, Defendant Fairhaven 25 Health LLC (“Fairhaven”) was a customer of BioOrigyn until the two companies 26 “entered into a business collaboration on product development.” Id. ¶¶ 5-6. BioOrigyn 27 1 agreed to help Fairhaven develop Fairhaven-branded products in exchange for royalty 2 payments. Id. ¶ 6. The products would come to be known as IsoFresh (a balancing 3 vaginal gel), BabyIt (a perineal massage and postpartum comfort gel), and BabyDance (a 4 fertility lubricant). Id. ¶ 28. The products were marketed under the “IsoLove” brand 5 name, and the Court refers to the products collectively as “IsoLove products.” Id. ¶ 29. 6 In developing the products, the parties’ entered a series of agreements, only one of 7 which is relevant here. Id. ¶¶ 22-26, 32. On May 1, 2015, Dr. Ellington and Fairhaven 8 entered an agreement (“2015 Likeness Agreement”),1 granting Fairhaven “the right to use 9 Dr. Ellington’s Name and Likeness in relation to certain products,” subject to several 10 conditions. Id. ¶ 32; Dkt. # 3. Dr. Ellington’s name and likeness2 include “her full and 11 formal names, nicknames, or aliases” and her “image, signature, voice, likeness and other 12 representations.” Dkt. # 1 ¶ 11. Plaintiffs bring this action based on Fairhaven’s alleged 13 “misappropriation” of Dr. Ellington’s likeness and alleged “false and deceptive 14 commercial practices related to unauthorized and commercial use” of her likeness. Id. 15 Plaintiffs allege that Fairhaven misappropriated Dr. Ellington’s likeness because, 16 despite terminating the 2015 Likeness Agreement months after entering it, Fairhaven 17 continued to use Dr. Ellington’s likeness. Id. ¶¶ 34-35. Plaintiffs cite several instances. 18 They claim that after termination Fairhaven used her likeness to promote Dr. Ellington as 19 a “Medical Health Advisor” on Fairhaven’s website. Id. ¶¶ 38-40. In addition, they 20 claim that Fairhaven used her likeness to promote the IsoLove products. Id. ¶¶ 41-57. 21 Lastly, they claim that Fairhaven used her likeness to promote one product, “FertilAid 22 For Men,” in a way that “went beyond the terms” of the 2015 Likeness Agreement. Id. 23 ¶¶ 58-68. 24 Plaintiffs claim that Fairhaven engaged in false and deceptive commercial 25

26 1 The complaint labels this agreement the “Likeness License.” Dkt. # 1 ¶ 8. 2 Unless otherwise stated, the Court refers to Dr. Ellington’s name and likeness 27 collectively as “likeness.” 1 practices, on the other hand, because it made misstatements in its product advertisements. 2 Id. ¶¶ 69-85. For example, Plaintiffs allege that Fairhaven advertised one IsoLove 3 product as having “no irritation potential,” despite “user feedback” to the contrary. Id. 4 ¶ 70. Another example, Plaintiffs allege that Fairhaven promoted FertilAid For Men, a 5 fertility pill, as being “clinically proven” to “improve sperm count, motility and 6 morphology,” even though the clinical study referred to in fact found no such 7 improvement. Id. ¶¶ 76-85 (emphasis omitted). The clinical study was conducted by Dr. 8 Ellington. Id. 9 On February 24, 2020, Plaintiffs sued Fairhaven. Dkt. # 1. They assert five 10 claims: breach of the 2015 Likeness Agreement, false association and false advertising in 11 violation of the Lanham Act, infringement of personality rights, and unfair business 12 practices in violation of Washington’s Consumer Protection Act. Id. 13 Fairhaven now moves to dismiss, or in the alternative, for partial summary 14 judgment. Dkt. # 23. The motion is ripe for review. 15 III. LEGAL STANDARD 16 Federal courts are tribunals of limited jurisdiction and may only hear cases 17 authorized by the Constitution or a statutory grant. Kokkonen v. Guardian Life Ins. Co. 18 of America, 511 U.S. 375, 377 (1994). The burden of establishing subject-matter 19 jurisdiction rests upon the party seeking to invoke federal jurisdiction. Id. Once it is 20 determined that a federal court lacks subject-matter jurisdiction, the court has no choice 21 but to dismiss the suit. Arbaugh v. Y & H Corp., 546 U.S. 500, 514 (2006); Fed. R. Civ. 22 P. 12(h)(3) (“If the court determines at any time that it lacks subject-matter jurisdiction, 23 the court must dismiss the action.”). 24 A party may bring a factual challenge to subject-matter jurisdiction, and in such 25 cases the court may consider materials beyond the complaint. PW Arms, Inc. v. United 26 States, 186 F. Supp. 3d 1137, 1142 (W.D. Wash. 2016) (citing Savage v. Glendale Union 27 High Sch., 343 F.3d 1036, 1039 n.2 (9th Cir. 2003)); see also McCarthy v. United States, 1 850 F.2d 558, 560 (9th Cir. 1988) (“Moreover, when considering a motion to dismiss 2 pursuant to Rule 12(b)(1) the district court is not restricted to the face of the pleadings, 3 but may review any evidence, such as affidavits and testimony, to resolve factual disputes 4 concerning the existence of jurisdiction.”). 5 IV. DISCUSSION 6 Fairhaven advances three arguments: Plaintiffs’ claims are subject to binding 7 arbitration, Plaintiffs’ claims fail because Ms. Ellington consented or acquiesced to 8 Fairhaven’s use of her likeness, and Plaintiffs’ claims fail because they are untimely. 9 Dkt. # 23 at 2-3. The Court need only address the first. The Court agrees with Fairhaven 10 that this case must be dismissed and submitted to arbitration, and the Court ends its 11 analysis there. 12 A. Motions to Seal (Dkt. ## 52, 56) 13 In a previous order, the Court denied without prejudice the parties’ unopposed 14 motions to seal. Dkt. # 51. Though the Court agreed that the documents requested to be 15 sealed were confidential and proprietary, it denied the motions because as presented they 16 did not meet the “compelling reasons” sealing standard. Kamakana v. City & Cnty. of 17 Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006). The parties failed to explain what injury 18 would result if the documents are not sealed or why a less restrictive alternative would be 19 insufficient. Dkt. # 51. 20 Since then, the parties have refiled their motions to seal. Dkt. ## 52, 56. They 21 have revised their motions and pared their requests for redactions. Id. They have also 22 publicly refiled many documents or portions of documents that were previously filed 23 under seal. Dkt. ## 53-54, 57-62. The Court has reviewed the parties’ submissions and 24 determines that the parties have remedied the deficiencies of their previous sealing 25 motions.

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