Burger King Corp. v. Weaver

33 F. Supp. 2d 1037, 1998 U.S. Dist. LEXIS 21678, 1998 WL 853134
CourtDistrict Court, S.D. Florida
DecidedAugust 27, 1998
Docket98-1083-CIV
StatusPublished
Cited by2 cases

This text of 33 F. Supp. 2d 1037 (Burger King Corp. v. Weaver) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burger King Corp. v. Weaver, 33 F. Supp. 2d 1037, 1998 U.S. Dist. LEXIS 21678, 1998 WL 853134 (S.D. Fla. 1998).

Opinion

ORDER GRANTING PLAINTIFF’S MOTION FOR A PRELIMINARY INJUNCTION

MORENO, District Judge.

THIS CAUSE came before the Court upon Plaintiff Burger King Corporation’s Motion for a Preliminary Injunction, filed on June 10,1998.

THE COURT has considered the motion, responses and the pertinent portions of the record, and being otherwise fully advised in the premises, it is

ADJUDGED that the motion is GRANTED.

I. BACKGROUND

Plaintiff Burger King Corporation (“BK”) previously filed suit in this district in 1990, in the case styled Burger King Corp. v. C.R. Weaver and M-W-M, Inc., No. 90-2191-CIV-MORENO (S.D.Fla. filed Sept. 21, 1990) (hereinafter the “1990 Case”), to collect unpaid royalties, advertising contributions and rent that was due and owing to BK under agreements Defendant Weaver had entered into for two BK franchises in Great Falls, Montana. BK later added claims in the 1990 Case for trademark infringement when Weaver refused to cease use of BK’s trademarks following termination of the Great Falls franchise agreements based on non-payment. In September 1996, then-District Judge Stanley Marcus 1 granted summary judgment in favor of BK on its trademark infringement and breach of contract claims against Weaver. Judge Marcus subsequently entered a Final Judgment in favor of BK in the amount of $4,993,524.97. An appeal in the 1990 Case was recently heard before the United States Court of Appeals for the Eleventh Circuit. The parties are presently conducting Court-ordered post-judgment discovery in the 1990 Case.

Despite the problems involving his Great Falls restaurants, Weaver remained the franchisee of BK restaurant # 4963, in Kalispell, Montana (the “Kalispell restaurant”). However, by Notice of Default dated April 22, 1998, BK advised Weaver that he was in default under his franchise agreement for the Kalispell restaurant based on his failure to satisfy the Final Judgment or post an appeal bond. 2 Weaver argues that he is not in default, and based on this dispute, BK filed the instant action, which, after subsequent amendment of the complaint, asserts claims for, inter alia, trademark infringement and *1039 breach of contract, and seeks a judgment declaring that Weaver is in default and that BK could therefore terminate the franchise agreement if Weaver’s default was not cured.

Weaver, in turn, filed an action in Montana state court, where Weaver obtained an ex parte temporary restraining order enjoining BK from terminating his franchise agreement. BK removed the Montana action to the United States District Court for the District of Montana. Weaver v. Burger King Corp., NO. CV-98-72-M-DWM (D.Mont. filed May 19, 1998) (the “Montana action”). Arguing in this Court that Defendant’s Montana action was a “mirror-image” of the instant action, and that this case was the “first-filed” action, BK sought to enjoin Weaver from proceeding with the Montana action. BK also argued that Weaver’s claim was a compulsory counterclaim in this action. However, in an Order of Transfer filed on June 26, 1998, Judge Donald W. Molloy of the United States District Court for the District of Montana, Missoula Division, transferred the Montana action, which is related to both the instant action and the 1990 Case, to this district. 3 Judge Molloy specifically noted that in the 1990 Case, oral argument on Weaver’s appeal was recently heard before the Eleventh Circuit Court of Appeals.

BK has filed a motion for a preliminary injunction in this case, seeking an order restraining Weaver from trading upon the goodwill and reputation of BK by continuing his unauthorized use of the BK trademarks and service marks (the “BK Marks”), trade dress, and the BK system of restaurant operation in connection with his terminated franchise — the Kalispell restaurant. Weaver, seeking to have it his way with BK, argues that the motion for a preliminary injunction should be denied as moot.

II. WHETHER BK’S REQUEST FOR PRELIMINARY INJUNCTIVE RELIEF IS MOOT

In order to grant the preliminary injunc-tive relief sought by BK, this Court must find that BK has satisfied the following four requirements:

(1) a substantial likelihood of success on the merits; (2) irreparable injury will be suffered unless the injunction issues; (3) the threatened injury to the movant is greater than any damage the proposed injunction may cause the opposing party; and (4) the injunction, if issued, will not disserve the public interest.

Carillon Importers, Ltd. v. Frank Pesce Int’l Group Ltd., 112 F.3d 1125, 1126 (11th Cir.1997) (citation omitted). In addition, “[t]he grant or denial of a preliminary injunction is a decision within the discretion of the district court.” Id. (citation omitted).

BK has presented an exhaustive analysis of the four prerequisites to the granting of preliminary injunctive relief. However, Weaver has responded by asserting only one central argument for the Court to consider— that BK’s motion for a preliminary injunction should be denied as moot because, upon learning that BK sought injunctive relief, Weaver commenced, and has subsequently completed, a “de-identification” of the Kalis-pell restaurant as a BK restaurant. For instance, Weaver asserts that he has ceased using signs, banners, labeling, packaging, advertising, promotional display and point of sale materials that bore or made reference to any of BK’s Marks, or any colorable imitation of such Marks, at the Kalispell restaurant. Weaver has submitted samples of his new burger and french fry containers, cups and bags without BK Marks, and Weaver has confirmed that hé has no intention of ever using BK’s Marks in the future. Weaver thus maintains that BK cannot establish the threat of “continuing irreparable injury” required for the granting of injunctive relief.

The Court agrees with Weaver’s argument that, as a general principle, when conduct sought to be enjoined has ceased and is unlikely to resume, federal courts should not grant injunctive relief. Snair v. City of Clearwater, 787 F.Supp. 1401, 1415 (M.D.Fla. 1992) (noting that “federal courts should not grant injunctive relief when the conduct sought to be stopped has ceased and is unlikely to resume”) (citation omitted). Weav *1040 er thus asserts that there is no need for injunctive relief here given his assurances that he will not use BK’s Marks in the future. See, e.g., American Express Travel Related Servs. Co., Inc. v. MasterCard Int’l Inc., 776 F.Supp. 787, 791 (S.D.N.Y.1991) (“When a defendant revises an allegedly infringing commercial and represents that the original commercial will not be broadcast in the future, the need for injunctive relief as to the original commercial is moot.”) (citations omitted).

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Bluebook (online)
33 F. Supp. 2d 1037, 1998 U.S. Dist. LEXIS 21678, 1998 WL 853134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burger-king-corp-v-weaver-flsd-1998.