Calzaturificio Rangoni S.P.A. v. United States Shoe Corp.

868 F. Supp. 1414, 33 U.S.P.Q. 2d (BNA) 1345, 1994 U.S. Dist. LEXIS 16318, 1994 WL 684482
CourtDistrict Court, S.D. New York
DecidedNovember 16, 1994
Docket92 Civ. 2020 (JFK)
StatusPublished
Cited by18 cases

This text of 868 F. Supp. 1414 (Calzaturificio Rangoni S.P.A. v. United States Shoe Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Calzaturificio Rangoni S.P.A. v. United States Shoe Corp., 868 F. Supp. 1414, 33 U.S.P.Q. 2d (BNA) 1345, 1994 U.S. Dist. LEXIS 16318, 1994 WL 684482 (S.D.N.Y. 1994).

Opinion

OPINION AND ORDER

KEENAN, District Judge:

Before the Court is defendant’s motion for summary judgment seeking dismissal of all claims of plaintiff as stated in plaintiffs Amended Complaint, pursuant to Fed. R.Civ.P. 56. Also before the Court is plaintiffs cross motion for partial summary judgment in its favor upon Count Ten of the Amended Complaint and also with respect to paragraphs 25A, 30A, 44A, 47A, 50A, 53A, 56A, and 61A thereof. For the reasons that follow, the motion of defendant is granted. The motion of plaintiff is denied.

BACKGROUND

Plaintiff Calzaturificio Rangoni, S.p.A. (hereinafter “Rangoni”) is an Italian corporation having a principal place of business in Florence, Italy, where it owns and operates a factory engaged in the manufacture and distribution of footwear. Defendant United States Shoe Corporation (hereinafter “U.S. Shoe”) is an Ohio corporation having its principal place of business in Cincinnati, Ohio and an office for the transaction of business in New York, New York.

In the late 1940’s plaintiff and a predecessor of defendant, Marx & Newman Co., Inc. (hereinafter “Marx”), began to do business together. Plaintiff and Marx entered into a series of agreements over the years relating to the sale of products manufactured in Italy by Rangoni. The trademark AMALFI was created and developed in the 1950’s. Rangoni registered the AMALFI mark in Italy and elsewhere. By agreement, in 1955 and 1959, Marx and Amalfi Originals (a New York subsidiary of Marx) registered the AMALFI mark in their territory — the United States and Canada. It was agreed that Marx and Amalfi Originals would only use the AMALFI mark on shoes manufactured by Rangoni.

The last of the Agreements negotiated between the parties was entered into in 1962. The 1962 Agreement established that the manufactured products were to be sold in designated territories, including the United States, by either Marx or Amalfi Originals. Thereafter, U.S. Shoe, as the successor-in-interest to both Marx and Amalfi Originals, renewed the AMALFI registration.

In July of 1982, U.S. Shoe allegedly requested an amendment of the 1962 Agreement to permit it to use the AMALFI mark on goods manufactured by others than Rangoni. Rangoni refused, and shortly thereafter, U.S. Shoe notified Rangoni of its intention to terminate (as was either side’s right) the 1962 contract, effective January 1, 1985. Despite this notice, the parties continued to negotiate a possible continuation of their relationship. Rangoni contends that U.S. Shoe, in breach of the 1962 Agreement, used the AMALFI mark on products manufae *1416 tured by others than Rangoni. Rangoni also contends that U.S. Shoe threatened Rangoni with costly litigation. When the negotiations ultimately failed, the effective termination date was finally fixed at May 31, 1985.

Rangoni states that with this termination it would lose more than 70% of its sales. Rangoni contends that it deferred litigation regarding the alleged breaches and devoted itself to maintaining solvency. On May 14, 1985, Niccolo Rangoni wrote to William Ritchie, an Australian Company, stating that its relationship with U.S. Shoe had been terminated but that U.S. Shoe would continue to use the AMALFI mark on non-Rangoni goods U.S. Shoe sold in the United States and Canada. On May 20, 1985, John Boyer of the law firm of Cadwalader Wiekersham & Taft (Rangoni’s and Niccolo Rangoni’s attorneys) wrote to Howard Platt, a Senior Vice President for U.S. Shoe, concerning the termination of the relationship set to occur on May 31 of that year. In his letter at his client’s instruction, Boyer stated that Rangoni was the rightful owner of the AMALFI mark in the United States. Further, Boyer contended that U.S. Shoe’s 1959 trademark application contained fraudulent information. Boyer stated that “Rangoni intends to strictly enforce its rights under the contract and likewise will hold U.S. Shoe fully liable for any damages incurred as a result of any breach of the agreement.” See Defendant’s Ex. B. Boyer further stated that

based on our investigation into the records of the Patent and Trademark Office and information received by Mr. Rangoni, the AMALFI mark is being used by U.S. Shoe on products not manufactured by Rangoni, including shoes, stores called Amalfi Shop, women’s wear and glassware. You are advised that such use of the AMALFI trademark constitutes clear breach of the referenced agreement. Rangoni intends to take whatever actions are necessary to protect its rights under the agreement and under United States trade regulation laws.

See id.

Since the May 31, 1985 termination of the 1962 Agreement, U.S. Shoe has continued to use the AMALFI mark on goods sold in the United States and Canada. Rangoni has adopted another mark for use on goods distributed in the United States. Since the termination, Rangoni has not, either directly or indirectly through a licensee, manufactured the AMALFI footwear sold in the United States or used the trademark AMALFI in the United States.

After the May 31, 1985 termination, Rangoni learned that U.S. Shoe was affixing the AMALFI mark onto shoes manufactured in Italy for eventual sale in the United States. In 1989 or 1990, Rangoni took ineffective actions in Italy to stop that practice. In 1991, in response to those actions, U.S. Shoe filed an action before the Tribunale di Firenze, a court of general jurisdiction in Florence, Italy. In that suit, U.S. Shoe sought a declaratory judgment that it was entitled to affix the AMALFI mark in Italy to shoes manufactured solely for export to and sale in the United States. Rangoni then asserted a counterclaim, declaring that U.S. Shoe does not own the AMALFI mark in the United States and its use of the AMALFI mark in the United States is therefore unlawful. U.S. Shoe opposed this counterclaim primarily on the basis that the Italian court lacked jurisdiction to hear the issue.

The Italian court issued its judgment (hereinafter the “Italian Judgment”) in favor of Rangoni on October 28, 1993. The Italian court noted that the

marketing in the American market on the part of the plaintiff' U.S. Schoe [sic] of products with the Amalfi mark arose on the basis of a contractual agreement which was made between its predecessors and the defendant, an agreement which was cancelled by the parties and is no longer in effect ...

See Defendant’s Ex. C, at 22. That court concluded that “the joint stock company La Conca del Sole”, the company manufacturing shoes for U.S. Shoe in Italy,

must be denied the right to produce in Italy and to sell in Italy products with the mark of which the defendant (Rangoni) is the exclusive owner, just as the right must be denied to U.S. Schoe [sic] to market such products, acquired in Italy, on the American market.

*1417 See id. The Italian court held that any rights U.S. Shoe had in the AMALFI mark were created by the Agreement and when the Agreement was terminated, so were U.S. Shoe’s rights to use the AMALFI mark. The court concluded that U.S. Shoe’s use of the AMALFI mark in the United States was unlawful.

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868 F. Supp. 1414, 33 U.S.P.Q. 2d (BNA) 1345, 1994 U.S. Dist. LEXIS 16318, 1994 WL 684482, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calzaturificio-rangoni-spa-v-united-states-shoe-corp-nysd-1994.