Coach, Inc. v. Sapatis

27 F. Supp. 3d 239, 2014 DNH 140, 111 U.S.P.Q. 2d (BNA) 1847, 2014 WL 2815746, 2014 U.S. Dist. LEXIS 84984
District Court, D. New Hampshire·Decided June 23, 2014·No. Civil No. 12-cv-506-PB·Published·Cited by 9 cases

Opinion

MEMORANDUM AND ORDER

PAUL BARBADORO, District Judge.

This case arises from the sale of counterfeit goods by third party vendors at a flea market in Londonderry, New Hampshire. Coach, Inc. and Coach Services, Inc.,1 purveyors of designer handbags and other personal goods, have sued Peter J. Sapatis, Londonderry Marketplace, LLC, Alaina E. Paul, and TABA Enterprises, LLC, seeking injunctive relief and damages based on alleged violations of federal trademark and copyright law. Paul and TABA moved for summary judgment. I deny the motion.

I. BACKGROUND

A detailed background of this case is provided in a previous order, Coach, Inc. v. Sapatis, 2014 DNH 021, 994 F.Supp.2d 192, 2014 WL 347712. I thus limit my discussion to those facts that are relevant to Paul’s motion for summary judgment.

Paul is the owner, manager, and sole member of TABA, a limited liability corporation that has both owned the Londonder-ry Flea Market and leased the land upon which it operates since 2008. Doc. No. 30-5. All vendors at the Flea Market contract exclusively with TABA to rent space for their booths. Doc. No. 30-2. Paul exercises direct control over all of TABA’s employees, delegates certain duties to them, and retains ultimate authority over them.2 Doc. Nos. 30-2, 47-4. Paul also retains sole responsibility for TABA’s anti-counterfeiting efforts. Doc. No. 47-4.

Since 2008, Paul has been present at the Flea Market every day that it has been open. Id. Although the bulk of Paul’s day-to-day activities are devoted to the operation of the concession stand, she admits that she is “responsible for everything” at the Flea Market. Doc. No. 42-11. Paul personally participates in activities such as “checking in vendors who want to rent space, assigning them [to their spaces], listening to vendors[’] ... suggestions, checking on vendors, especially now to [242] make sure that they’re following policies[, and].... helping] customers.” Id. In addition, Paul collaborates with Sapatis and Morrow to create and revise the Flea Market’s vendor policies, which include a prohibition on the sale of counterfeit goods. Id.

Paul also controls the Flea Market’s email account, londonderryfleamarket@ gmail.com, which is used to communicate with customers and vendors. Doc. Nos. 47-7, 47-8. Between February 2011 and December 2012, 655 of the email messages sent from this account identified Sapatis as the sender, 45 identified Paul as the sender, and an indefinite number of messages failed to identify a sender. Doc. No. 36. Nevertheless, Paul alleges that she is the only person with access to the account and is the only individual who has ever sent messages from it. Doc. No. 47-7. She explained that she wrote Sapatis’s name on email messages “[bjecause he has more knowledge than me, in certain instances. I don’t have a cell phone. People can’t get ahold of me. If they are going to call the office, they would call [Morrow] or him.” Id.

No email message sent or received since 2008 expressly references Coach products, whether authentic or counterfeit.3 See Doc. No. 47-8. Nonetheless, Paul responded to a number of messages from customers who expressed a general interest in purchasing counterfeit goods at the Flea Market, including the types of products that Coach manufactures. For example, on May 16, 2011, a customer asked whether the Flea Market “ha[s] vendors with knockoff purses.” Paul responded later that day that “[t]here are so many sellers / vendors at this flea market & a WIDE selection of items.... You will find MANY bargains — I’d say come & visit, with cash in your pocket!” Another customer inquired on July 14, 2011 whether “your flea market offer[s] knock off bags.” Later that day, Paul responded that “[t]here are so many items to look at & buy; including handbags / pocketbooks. You most likely will be satisfied with visiting.” 4 Another customer’s email message referenced the “1st 3-4 rows of vendors ... selling the pocketbooks” — rows purportedly including the vendors selling counterfeit Coach goods. Additional messages inquired into whether counterfeit goods imitating other designer brands eould be purchased at the Flea Market. Id.

On June 26, 2011, two private investigators working for Coach inspected the Flea Market, purchased a number of counterfeit Coach products from vendors, and served approximately thirty vendors selling such merchandise with cease and desist letters. Doc. No. 53r3. Paul claims that she was working at the concession stand during the inspection and learned of the inspection afterward from Morrow, who had accompanied the investigators. Doc. No. 42-11. The investigators returned to inspect the Flea Market on multiple occasions over the next year. They identified a number of vendors who were selling counterfeit Coach goods during several visits and informed Sapatis of that fact immediately following at least one of the inspections. Doc. No. 53-3.

[243] On or about August 2, 2011, Paul received a letter from Coach alleging that counterfeit Coach products were being sold by Flea Market vendors and that those responsible for the Flea Market’s operations could be held liable if they failed to stop this activity. Doc. Nos. 36-1, 47-4. Paul received a similar letter on or about May 14, 2012. Doc. No. 36-3, 47-4. Neither Paul nor any TABA employee ever communicated with Coach or any of its representatives prior to Coach suing Paul and TABA in June 2013. Doc. No. 36-2.

II. STANDARD OF REVIEW

Summary judgment is appropriate when the record reveals “no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a). An issue is considered genuine if the evidence allows a reasonable jury to resolve the point in favor of the nonmoving party, and a fact is considered material if it “is one ‘that might affect the outcome of the suit under the governing law.’ ” United States v. One Parcel of Real Prop. with Bldgs., 960 F.2d 200, 204 (1st Cir.1992) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)). In ruling on a motion for summary judgment, I examine the evidence in the light most favorable to the nonmoving party. Navarro v. Pfizer Corp., 261 F.3d 90, 94 (1st Cir.2001).

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Coach, Inc. v. Sapatis, 27 F. Supp. 3d 239, 2014 DNH 140, 111 U.S.P.Q. 2d (BNA) 1847, 2014 WL 2815746, 2014 U.S. Dist. LEXIS 84984 (D.N.H. 2014).

27 F. Supp. 3d 239 (Coach, Inc. v. Sapatis) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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