BOBBY AND RAY WILLIAMS v. Shreveport

882 So. 2d 676, 2004 WL 2101812
CourtLouisiana Court of Appeal
DecidedSeptember 22, 2004
Docket38,866-CA
StatusPublished
Cited by5 cases

This text of 882 So. 2d 676 (BOBBY AND RAY WILLIAMS v. Shreveport) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BOBBY AND RAY WILLIAMS v. Shreveport, 882 So. 2d 676, 2004 WL 2101812 (La. Ct. App. 2004).

Opinion

882 So.2d 676 (2004)

BOBBY AND RAY WILLIAMS PARTNERSHIP, L.L.P., Plaintiffs-Appellants
v.
The SHREVEPORT LOUISIANA HAYRIDE COMPANY, L.L.C., et al, Defendants-Appellees.

No. 38,866-CA.

Court of Appeal of Louisiana, Second Circuit.

September 22, 2004.

*677 William D. Dyess, Natchitoches, for Appellants.

William A. Lanigan, III, Shreveport, for Appellees, Margaret L. Warwick, Alton Warwick, Warwick Productions Inc., The Shreveport Louisiana Hayride Company, L.L.C.

Before BROWN, STEWART and DREW, JJ.

STEWART, J.

In this continuing trademark dispute, Bobby and Ray Williams Partnership, L.L.P., and Bobby Williams, individually, (herein referred to together as "Williams") appeal the denial of an exception of res judicata and an adverse judgment on a reconventional demand by The Shreveport Louisiana Hayride Company, L.L.C., Warwick Productions, Inc., Margaret Lewis Warwick, and Alton Warwick, (herein referred to collectively as the "Warwicks"). For the following reasons, we vacate the judgment in part and affirm in part.

FACTS

Our recent opinion in Bobby and Ray Williams Partnership, L.L.P. v. The Shreveport Louisiana Hayride Co., L.L.C., et al., 38,224 (La.App.2d Cir.4/21/04), 873 So.2d 739, sets forth the contentious history and salient facts surrounding this dispute over rights to "The Louisiana Hayride" trademark. This part of the litigation involves the Warwicks' reconventional demand for injunctive relief and damages due to Williams' alleged interference with their use of the mark.

The Warwicks alleged that the trademark had been abandoned when Louisiana Hayride Productions, Ltd., Williams' predecessor to the mark, ceased doing business in 1987, and that they were the first to then use the trademark in commerce at a date no later than January 16, 1992. The Warwicks further alleged that Williams has never used the trademark in commerce and that he has no recognizable federal or state trademark rights. In addition, the Warwicks alleged that Williams' interference with their use of the trademark has damaged their reputations, constituted dilution and infringement of the trademark, and violated state law dealing with trademarks and unfair trade practices. The Warwicks filed a motion for summary judgment on their demand.

Williams opposed the motion for summary judgment and filed an exception of res judicata. Williams argued that the reconventional demand "is found on the same cause of action, demands the same thing, and is between the same parties and formed by them in the same quality as" the federal litigation which resulted in a settlement, consent judgment, and order of dismissal in 1997.

Following a hearing, the trial court denied Williams' exception of res judicata and granted the Warwicks' motion for summary judgment upon finding no genuine issue of material fact and finding the Warwicks entitled to both declaratory and injunctive relief. In rendering declaratory judgment, the trial court made the following findings:

1. Louisiana Hayride Productions, Ltd., abandoned the trademark when it ceased doing business in August 1987;
2. Warwick was the first to then use the trademark in commerce;
*678 3. By virtue of being the first to use the trademark in commerce after its abandonment, Warwick obtained the right to be the exclusive user of the trademark;
4. The federal consent judgment allowed Williams the right to use the trademark subject to a concurrent use agreement that had not yet been confected by the parties;
5. Williams must obtain a concurrent use agreement before having any right to use the trademark; and
6. Williams' right to now enter a concurrent use agreement with Warwick is a matter residing with the federal district court.

The judgment enjoined Williams from using the trademark in any manner until a concurrent use agreement is confected, from interfering with or protesting the Warwicks' use or enjoyment of the trademark, and from making any claim of ownership of the trademark.

Following this favorable judgment, the Warwicks dismissed their remaining claim for damages. Williams' appeal of the trial court's denial of his exception of res judicata and granting of the Warwicks' motion for summary judgment is now before this court.

DISCUSSION

Res Judicata

Asserting that the Warwicks' reconventional demand involved the same claims as in the prior federal litigation, Williams contends that the trial court erred in denying his exception of res judicata. Because the exception addresses the preclusive effect of a federal consent decree, we must first determine whether state or federal res judicata law applies.

Our state jurisprudence recognizes that federal law must be applied in determining whether a judgment rendered by a federal court has res judicata effect. Terrebonne Fuel & Lube, Inc. v. Placid Refining Co., 95-0654 (La.1/16/96), 666 So.2d 624, (federal res judicata law applied to judgment by court which exercised federal question jurisdiction); Pilie & Pilie v. Graham, 547 So.2d 1305 (La.1989), (federal res judicata law applied to judgment by court which exercised diversity jurisdiction); McCollough v. Dauzat, 98-1293 (La.App. 3d Cir.3/3/99), 736 So.2d 914; and Gilbert v. Visone, 30,204 (La.App.2d Cir.2/25/98), 708 So.2d 496. Because the prior federal proceeding involved an exercise of federal question jurisdiction with pendant jurisdiction over state law claims, we find the federal res judicata law to be applicable in determining the preclusive effect of the consent judgment and dismissal.

Under federal res judicata law, also known as claim preclusion, a prior judgment bars an action on the basis of res judicata if the same parties were involved in both suits, the prior judgment was rendered by a court of competent jurisdiction, the prior decision was a final judgment on the merits, and both suits involved the same cause of action. Nilsen v. City of Moss Point, 701 F.2d 556 (5th Cir.1983); Steve D. Thompson Trucking, Inc. v. Dorsey Trailers, Inc., 870 F.2d 1044 (5th Cir.1989); Terrebonne, supra. Under federal law, consent judgments freely negotiated by the parties have the full effect of res judicata. Bayou Fleet, Inc. v. Alexander, 234 F.3d 852 (5th Cir.2000), cert. denied, 532 U.S. 905, 121 S.Ct. 1228, 149 L.Ed.2d 138 (2001); In re Gibraltar Resources, Inc., 210 F.3d 573 (5th Cir.2000).

The first three elements of res judicata are not in dispute. The disputed issue is whether both suits involve the same cause of action. The critical issue in determining *679 whether the same cause of action is involved in both suits is whether the actions are based on the same nucleus of operative facts. Travelers Ins. Co. v. St. Jude Hosp. Of Kenner, La., Inc., 37 F.3d 193 (5th Cir.1994), rehearing denied, 41 F.3d 666 (5th Cir.1994), cert. denied, 514 U.S. 1065, 115 S.Ct. 1696, 131 L.Ed.2d 559 (1995); Eubanks v. FDIC,

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882 So. 2d 676, 2004 WL 2101812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bobby-and-ray-williams-v-shreveport-lactapp-2004.