Clearline Technologies Ltd. v. Cooper B-Line, Inc.

948 F. Supp. 2d 691, 2013 WL 2422581, 2013 U.S. Dist. LEXIS 77710
CourtDistrict Court, S.D. Texas
DecidedJune 3, 2013
DocketCivil Action No. H-11-1420
StatusPublished
Cited by15 cases

This text of 948 F. Supp. 2d 691 (Clearline Technologies Ltd. v. Cooper B-Line, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clearline Technologies Ltd. v. Cooper B-Line, Inc., 948 F. Supp. 2d 691, 2013 WL 2422581, 2013 U.S. Dist. LEXIS 77710 (S.D. Tex. 2013).

Opinion

MEMORANDUM AND ORDER

KEITH P. ELLISON, District Judge.

Pending before the Court are the following motions:

1) Clearline Technologies, Ltd.’s (“Clearline” or “Plaintiff’) Motion for Pleading Amendment (Doc. No. 159);
2) Cooper B-Line Inc.’s (“Cooper”) Renewed Motion for Judgment as a Matter of Law (“JMOL”) (Doc. No. 161);
3) Clearline’s Renewed Motion for JMOL (Doc. No. 160);
4) Clearline’s Motion for Enhanced Damages (Doc. No. 156);
5) Clearline’s Motion for Supplemental Actual and Enhanced Damages (Doc. No. 184);
6)Clearline’s Motion for Award of Interest (Doc. No. 155);
7)Clearline’s Motion for Permanent Injunction (Doc. No. 157); and
8) Clearline’s Motion for Attorney’s Fees and Costs (Doc. Nos. 158).

Upon considering the Motions, all responses thereto, the applicable law, and oral arguments, the Court finds that:

1) Clearline’s Motion for Pleading Amendment must be DENIED;
2) Cooper’s Renewed Motion for JMOL must be DENIED;
3) Clearline’s Renewed Motion for JMOL must be DENIED;
4) Clearline’s Motion for Enhanced Damages must be DENIED;
5) Clearline’s Motion for Supplemental Actual and Enhanced Damages must be GRANTED IN PART AND DENIED IN PART WITHOUT PREJUDICE TO REFILING;
6) Clearline’s Motion for Award of Interest must be GRANTED IN PART AND DENIED IN PART;
7) Clearline’s Motion for Permanent Injunction must be GRANTED IN PART AND DENIED IN PART;
[697]*6978) Clearline’s Motion for Attorney’s Fees and Costs must be DENIED.

I. BACKGROUND

This case involves claims of trade dress and trademark infringement. Clearline contends that Cooper’s DURA-BLOK™ rooftop support products infringe on its C-PORT® products. At trial, Clearline argued that Cooper infringed on two aspects of its trade dress: a yellow reflective stripe and a yellow and black color scheme. It also argued the Cooper infringed on Clearline’s C-PORT® trademark by using it in the meta-tags on Cooper’s website and in a tradeshow catalog.

The jury returned a split verdict. (Doc. No. 151.) With regard to Clearline’s trade dress claims, the jury found that the use of reflective yellow striping was not non-functional, and did not create a likelihood of confusion as to the source, affiliation, or sponsorship of Cooper’s product, two independent reasons for finding no trade dress infringement as to the yellow reflective stripe. (Id. at 2, 4.) As to the yellow and black color scheme, the jury determined that the color scheme was non-functional, had acquired a secondary meaning, and created a likelihood of confusion as to the source, affiliation, or sponsorship of Cooper’s product. (Id. at 2-4.) These conclusions constitute a finding of trade dress infringement as to use of the yellow and black color scheme. Furthermore, the jury concluded that Cooper’s actions relating to its trade dress infringement were done willfully. (Id. at 5.) It awarded Clearline $2,660,000 in lost profits, and $3,200,000 in profit disgorgement damages for Cooper’s trade dress infringement. (Id. at 6-7.)

As to Clearline’s trademark infringement claims, the jury found that Cooper’s use of the C-PORT® trademark in meta-tags on its website did not create a likelihood of confusion as to the source, affiliation, or sponsorship of Cooper’s product. (Id. at 8.) It found that Cooper’s use of the C-PORT® trademark in a tradeshow catalog, however, did create a likelihood of confusion as to the source, affiliation, or sponsorship of Cooper’s product, a finding that was sufficient to find trademark infringement, as none of the other elements of a trademark infringement claim were contested. (Id.) Nonetheless, the jury concluded that this trademark infringement did not entitle Clearline to any amount of lost profits or profit disgorgement. (Id. at 10-11.)

Both parties have now filed numerous post-trial motions. The Court will first turn to Clearline’s Motion for Pleading Amendment. It will then address the motions for JMOL filed by both sides. Finally, the Court will address the motions regarding remedies, starting with damages.

II. PLEADING AMENDMENT

A. Legal Standard

Rule 15(b) provides in relevant part:
When issues not raised by the pleadings are tried by express or implied consent of the parties, they shall be treated in all respects as if they had been raised in the pleadings____[FJailure so to amend [the pleadings] does not affect the result of the trial of these issues.

Fed.R.Civ.P. 15(b). “The purpose of the rule is to allow the course of the trial, rather than the formal pleadings, to control the outcome.” Flannery v. Carroll, 676 F.2d 126, 131 (5th Cir.1982). However, “it is not often that amendments are allowed after the close of evidence, since the opposing party may be deprived of a fair opportunity to defend and to offer any additional evidence.” Triad Elec. & Controls, Inc. v. Power Sys. Eng’g, Inc., 117 F.3d 180, 193-94 (5th Cir.1997) (citing T.J. Stevenson & Co., Inc. v. 81,193 Bags of [698]*698Flour, 629 F.2d 338, 370 (5th Cir.1980)) (emphasis in original). Accordingly, “trial of unpled issues by implied consent is not lightly to be inferred under Rule 15(b), [and] such inferences are to be viewed on a case-by-case basis and in light of the notice demands of procedural due process.” Triad, 117 F.3d at 193-94 (citing Jimenez v. Tuna Vessel Granada, 652 F.2d 415, 422 (5th Cir.1981)).

“[T]rial by implied consent turns on: whether the parties recognized that the unpleaded issue entered the case at trial, whether the evidence that supports the unpleaded issue was introduced at trial without objection, and whether a finding of trial by consent prejudiced the opposing party’s opportunity to respond.” Portis v. First Nat’l Bank of New Albany, 34 F.3d 325, 332 (5th Cir.1994) (citing United States v. Shanbaum, 10 F.3d 305, 312-13 (5th Cir.1994)). A party does not consent to try “a new issue by introducing evidence or failing to object to evidence when the evidence is relevant to pleaded issues in the case.” Moody v. FMC Corp., 995 F.2d 63, 66 (5th Cir.1993) (citing Jimenez, 652 F.2d at 422; Int’l Harvester Credit Corp. v. E. Coast Truck, 547 F.2d 888, 890 (5th Cir.1977)).

B. Analysis

Clearline seeks leave to amend its complaint to add a claim that Cooper used its C-PORT® trademark in its internet website code. (Doc. No.

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948 F. Supp. 2d 691, 2013 WL 2422581, 2013 U.S. Dist. LEXIS 77710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clearline-technologies-ltd-v-cooper-b-line-inc-txsd-2013.