Chrysler Group LLC v. Moda Group LLC

796 F. Supp. 2d 866, 2011 U.S. Dist. LEXIS 69498, 2011 WL 2600520
CourtDistrict Court, E.D. Michigan
DecidedJune 28, 2011
DocketCase 11-11074
StatusPublished
Cited by2 cases

This text of 796 F. Supp. 2d 866 (Chrysler Group LLC v. Moda Group LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chrysler Group LLC v. Moda Group LLC, 796 F. Supp. 2d 866, 2011 U.S. Dist. LEXIS 69498, 2011 WL 2600520 (E.D. Mich. 2011).

Opinion

OPINION AND ORDER DENYING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION [12]

ARTHUR J. TARNOW, Senior District Judge.

I. INTRODUCTION

Plaintiff has filed this case alleging trademark infringement, false designation of origin, false descriptions, and unfair competition in violation of Section 43 of the Lanham Act, 15 U.S.C. § 1125(a), for false and deceptive trade practices under the laws of the State of Michigan, Mich. Comp. Laws § 4415.901 et seq., and all of the states in which Defendants have sold their products, and for unjust enrichment and unfair competition under state common law. Compl. ¶ 3.

Plaintiff seeks a preliminary injunction to enjoin Defendants Moda Group, LLC dba Pure Detroit, Kevin Borsay, and Shawn Santo (collectively, “Pure Detroit”) from using the phrase “IMPORTED FROM DETROIT” (“IFD”) during the pendency of this lawsuit. The Court, for the following reasons, denies the motion for preliminary injunction.

II. BACKGROUND

Procedural History

This case was filed on March 15, 2011. Plaintiff filed a Motion for Preliminary Injunction [12] on March 25, 2011. Defendants filed a Response [21] on April 18, 2011. Plaintiff filed a Reply [25] on May 5, 2011. The Court held an evidentiary hearing on May 20, 2011.

The Parties

Plaintiff primarily manufactures automobiles, but also sells products online. Its principal place of business is in Auburn Hills, MI. Chrysler’s automobiles are produced, manufactured, and assembled outside of Detroit. Its assembly plants are located in Sterling Heights, Michigan; Windsor, Ontario; and Brampton, Ontario.

Defendant, Pure Detroit, is a family owned business that specializes in selling products that promote and/or are made in Detroit. All of Pure Detroit’s stores are located in landmark Detroit buildings: the Fisher Building, the Guardian Building, and the Renaissance Center. Pure Detroit sells its products on the internet also. Pure Detroit contends that its whole purpose is “amping up” local culture. Pure Detroit is involved in numerous residential, neighborhood, and urban development projects in Detroit.

The Products

In an effort to increase its sales and compete with foreign car companies, Plaintiff hired an outside marketing agency to develop a “repositioning campaign.” Plaintiff has spent more than fifty million dollars on its campaign. Plaintiff introduced its campaign during the Superbowl with a two minute Bom of Fire commercial. Bom of Fire (Chrysler commercial broadcast on FOX Feb. 6, 2011).

Plaintiff has filed three trademark applications for the IFD phrase, one of which *870 includes IFD in connection with t-shirts (Serial Nos. 85/237193, 85/219920, and 85/183477). All three applications have been approved for publication. Hrg. Tr., Exs. 19, 23, 26, May 20, 2011.

The only Chrysler product featured in the commercial is the Chrysler 200 model. There are no products with the IFD phrase on them in the commercial. At the end of the commercial, the screen fades to black, and the words “IMPORTED FROM DETROIT” appear on the screen for seven seconds. The Chrysler name and wing badge appear after the words fade.

After the commercial aired, Chrysler’s website hits went from fewer than 500 hits per second to 13,244 hits per second. Gar-lick Dec. ¶ 9. Chrysler began selling t-shirts with the IFD phrase through its website. After the commercial, Defendants began making shirts featuring the IFD phrase. Defendants’ shirts do not have the Chrysler logo or the Chrysler name on the shirt. Pure Detroit’s shirts have its own signature stamp of the Spirit of Detroit on the back. One of the Defendants’ ads for the shirts said:

Imported From Detroit — Women’s— Black: A tagline that is making headlines across America! Get your very own Imported From Detroit T-Shirt today. Grey Letters on a Ladies Black Tee. A Pure Detroit Exclusive!

Hrg. Tr., Ex. 37.

Plaintiff contacted Defendants shortly after finding out about the IFD shirts. Plaintiff requested that Pure Detroit cease and desist using the IFD phrase. Defendants refused and continue to sell shirts. Defendants also began selling tote bags and other variations of the t-shirt.

III. STANDARD OF REVIEW

“A preliminary injunction is reserved for only the most egregious case, and should not be extended to cases which are doubtful or do not come within well-established principles of law.” Bonnell v. Lorenzo, 241 F.3d 800, 826 (6th Cir.2001). The moving party has the “burden of proving that the circumstances clearly demand [an injunction].” Overstreet v. Lexington-Fayette Urban Cnty. Gov’t, 305 F.3d 566, 573 (6th Cir.2002).

When evaluating a motion for preliminary injunction, the Court must consider four factors: “(1) whether the movant has a strong likelihood of success on the merits; (2) whether the movant would suffer irreparable injury without the injunction; (3) whether issuance of the injunction would cause substantial harm to others; and (4) whether the public interest would be served by issuance of the injunction.” Bonnell, 241 F.3d at 809 (quoting Rock & Roll Hall of Fame v. Gentile Prods., 134 F.3d 749, 753 (6th Cir.1998)).

No single factor is controlling of the outcome, although if “there is simply no likelihood of success on the merits” that is usually “fatal.” Gonzales v. Nat’l Bd. of Med. Exam’rs, 225 F.3d 620, 625 (6th Cir.2000).

TV. DISCUSSION

Plaintiff has failed to show that the extraordinary remedy of a preliminary injunction is warranted in this case. Plaintiffs arguments fall short on two critical factors: 1) irreparable harm and 2) strong likelihood of success on the merits. Plaintiff has the option of an adequate remedy at law, if it should ultimately succeed in the litigation. In addition, Plaintiffs failure to show that it has a strong likelihood of success on the merits is fatal to its request for a preliminary injunction. The remaining factors — substantial harm to others and the public interest — do not save Plaintiff.

*871 A. Irreparable Harm

Plaintiff argues that in the absence of a preliminary injunction it will suffer irreparable harm. Plaintiff has to show more than a “possibility of irreparable harm.” Winter v. Nat. Res. Defense Council, Inc.,

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Bluebook (online)
796 F. Supp. 2d 866, 2011 U.S. Dist. LEXIS 69498, 2011 WL 2600520, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chrysler-group-llc-v-moda-group-llc-mied-2011.