Domino's Pizza PMC v. Caribbean Rhino, Inc.

453 F. Supp. 2d 998, 2006 U.S. Dist. LEXIS 67216, 2006 WL 2645002
CourtDistrict Court, E.D. Michigan
DecidedSeptember 13, 2006
DocketCivil 05-40305
StatusPublished
Cited by6 cases

This text of 453 F. Supp. 2d 998 (Domino's Pizza PMC v. Caribbean Rhino, Inc.) 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
Domino's Pizza PMC v. Caribbean Rhino, Inc., 453 F. Supp. 2d 998, 2006 U.S. Dist. LEXIS 67216, 2006 WL 2645002 (E.D. Mich. 2006).

Opinion

ORDER

GADOLA, District Judge.

Plaintiff Domino’s Pizza PMC, Inc. filed a complaint on September 30, 2005, for trademark infringement, alleging that Defendants Jeffrey Martineau, Caribbean Rhino, Inc., and Buy for Charity, LLC, used Plaintiffs trademarks to sell unauthorized “pizza cards” over the internet. Now before this Court is a motion filed on December 13, 2005 by Defendants Caribbean Rhino, Jeffrey Martineau, and Buy for Charity seeking dismissal for lack of personal jurisdiction, pursuant to Federal Rules of Civil Procedure 12(b)(2); dismissal for improper venue, pursuant to 28 U.S.C. § 1406; and, in the alternative, a transfer of venue to the Western District of Texas, Austin Division, pursuant to 28 U.S.C. § 1404. Plaintiff filed a response to Defendants’ motion on March 2, 2006, and Defendants filed a reply on March 10, 2006. For the reasons stated below, this Court will deny Defendants motion.

I. FACTUAL BACKGROUND

Plaintiff Domino’s Pizza PMC (“Domino’s”) is a Michigan corporation, located in Ann Arbor, Michigan, with its principal place of business in Michigan. Defendant Jeffrey Martineau (“Martineau”) is an Alabama resident. Defendant Caribbean Rhino, a company started by Martineau, is an Alabama corporation and Defendant Buy for Charity, LLC (“Buy for Charity”), is a Texas limited liability company with its principal place of business in Austin, Texas. Defendant Martineau initially started the business related to the sale of allegedly infringing discount pizza cards, later incorporating as Caribbean Rhino, Inc. Mar-tineau later sold the business assets of Caribbean Rhino to Defendant Buy for Charity who allegedly continued to use the name and trademark of Domino’s Pizza, PMC. Plaintiffs complaint alleges trademark infringement and unfair competition pursuant to 15 U.S.C. § 1051 et seq., and specifically, 15 U.S.C. §§ 1114, 1117 and 1125(a) of the Lanham Act. The Court notes that subject matter jurisdiction is proper based upon the claims pursuant to 15 U.S.C. § 1121, 28 U.S.C. § 1331, and 28 U.S.C. § 1338(a).

Defendant Martineau initially began his business by soliciting pizza franchisees by telephone and internet websites to participate in his pizza card program. Defendant used websites that allegedly displayed the Domino’s name and logo to give the impression that the program was sponsored by the Domino’s corporation. Defendant then negotiated and contracted with individual Domino’s franchisees, including Michigan franchisees, to redeem the pizza cards at their individual stores. Not only did Defendant use the websites to solicit franchisees willing to participate in the program, he also used the websites to advertise and sell the pizza cards to various groups seeking to conduct fund-raising activities. These cards also prominently displayed the “Domino’s Pizza” name and logo. The essence of the pizza card program was that the cards were offered for sale for three dollars each. The purchasers were then instructed to sell the cards to individuals in their community for ten dollars each, creating a seven-dollar per-card profit for the fund-raising group. These pizza cards entitled the bearer to redeem the cards at participating locations for the discount that had been previously negotiated with Martineau, frequently offering a buy-one-get-one-free pizza deal.

Initially Martineau began the business on his own, contacting and negotiating with the franchisees to set up a network of participating locations. As the operation grew however, Defendant incorporated as *1001 Caribbean Rhino, Inc., an Alabama corporation. After continued growth, in April of 2005, Defendant Buy for Charity purchased the business assets of Caribbean Rhino. The sale of the pizza card business included the www.KrazyKard.com website used to market and sell the cards, the individual contracts negotiated with the franchisees, and the databases associated with the card sales. Buy for Charity continued to operate the pizza card scheme, marketing and selling the allegedly infringing cards on its website, www. buyforcharity.com, and others. In addition to selling the allegedly infringing cards, these websites allegedly displayed the Domino’s name and trademark.

Defendants deny any trademark infringement and claim in their defense that they entered into written or oral contracts with approximately 800 Domino’s franchisees. Those contracts, they argue, explicitly authorized Defendants to sell the pizza cards. Defendants claim that each contract with the Domino’s franchisees was negotiated, drafted, and entered into from Defendants’ offices in Austin, TX. Defendants further assert that all business transactions including sales, marketing and website maintenance occurred in Austin, Texas. Defendant does not clearly set forth whether, and if so, how, Alabama resident Martineau and Alabama corporation Caribbean Rhino, conducted these operations in Austin, Texas.

All Defendants now move to dismiss this action for lack of personal jurisdiction and improper venue. In the alternative, Defendants move to transfer the case to Austin, Texas “for the convenience of the parties and in the interest of justice.” 28 U.S.C. § 1404(a).

II. MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION

Defendants filed one motion and brief on behalf of all defendant parties. The motion and brief consistently intermingle arguments relating to dismissal for lack of personal jurisdiction and dismissal for lack of venue, without distinction. Additionally, although the arguments set forth in Defendants’ motion initially appear to be asserting claims as to all defendants, the eviden-tiary support provided frequently relates to only Defendant Buy for Charity. While this Court need not take up arguments insufficiently developed or ambiguously asserted by counsel, in the interests of justice the Court will address the arguments in turn with respect to all defendants, first taking up the lack of personal jurisdiction claim, later turning to the lack of venue claim, and finally to the change of venue argument.

A. Legal Standard

To establish personal jurisdiction, Plaintiff “must show that (1) the Michigan long-arm statute supports the Court’s exercise of personal jurisdiction and (2) the exercise of jurisdiction would not violate the Due Process Clause of the Fourteenth Amendment.” Viches v. MLT, Inc.,

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Bluebook (online)
453 F. Supp. 2d 998, 2006 U.S. Dist. LEXIS 67216, 2006 WL 2645002, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dominos-pizza-pmc-v-caribbean-rhino-inc-mied-2006.