Durnell's RV Sales, Inc. v. Jeff Couch's Campers, LLC

CourtDistrict Court, S.D. Ohio
DecidedJanuary 27, 2023
Docket1:22-cv-00242
StatusUnknown

This text of Durnell's RV Sales, Inc. v. Jeff Couch's Campers, LLC (Durnell's RV Sales, Inc. v. Jeff Couch's Campers, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Durnell's RV Sales, Inc. v. Jeff Couch's Campers, LLC, (S.D. Ohio 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO WESTERN DIVISION

DURNELL’S RV SALES, INC., et al.,

Plaintiffs, Case No. 1:22-cv-242 v. JUDGE DOUGLAS R. COLE

JEFF COUCH’S CAMPERS, LLC,

Defendant.

OPINION AND ORDER Plaintiffs Durnell’s RV Sales, Inc. and RV Wholesalers LLC claim they own the rights to, and use, the mark THE REAL RVWHOLESALERS in connection with selling recreational vehicles. Providing at least some support for that, the United States Patent and Trademark Office has in fact registered that mark to RV Wholesalers LLC. See Reg. No. 5615630. In this action, the two proceed against Defendant Jeff Couch’s Campers, LLC, for trademark infringement based on Couch’s use of a nearly identical mark—THE REAL RV WHOLESALERS. Couch, though, says it used that mark for years before Plaintiffs’ claimed first use date. And in its Answer, Couch claims it has filed (or will file) a cancellation action before the Trademark Trial and Appeal Board challenging Plaintiffs’ mark. Couch also asserts various affirmative defenses and counterclaims in this suit based on its allegedly superior rights in the mark. Among these is Counterclaim Four labeled simply “Fraud,” but which Couch now clarifies is a claim for fraud on the trademark office in connection with Plaintiffs’ efforts to register the mark. The case is now before the Court because Plaintiffs have moved to dismiss Couch’s fraud counterclaim. (Doc. 14). In particular, they say Couch has failed to state that claim with the specificity that Rule 9(b) requires. For the reasons discussed

below, the Court agrees Couch has insufficiently pled this claim. Thus, the Court GRANTS Plaintiffs’ Motion to Dismiss (Doc. 14) and DISMISSES Jeff Couch’s Campers, LLC’s Counterclaim Four WITH PREJUDICE. BACKGROUND Plaintiffs Durnell’s RV Sales, Inc. (“Durnell”) and RV Wholesalers LLC (“RVW”) sued Jeff Couch’s Campers, LLC (“Couch”), asserting trademark

infringement1 and unfair competition based on Couch’s use of Plaintiffs’ registered mark THE REAL RVWHOLESALERS. (Compl., Doc. 6). Couch does not dispute that it uses a nearly identical mark, nor does Couch dispute that it uses that mark in competing with Plaintiffs (or at least with Durnell, the entity that actually sells RVs). Rather, Couch claims it has the earlier use in commerce in this geographic area and thus holds superior rights to the mark. (Answer and Countercl., Doc. 5).

So, the Court at this stage has two competing factual narratives before it. But as Couch (the defendant) resists the Motion to Dismiss (which is directed at Couch’s Counterlaim Four), the Court for now accepts Couch’s narrative over Durnell’s and RVW’s, to the extent that they differ, when reporting the factual background. The

1 Although the Complaint labels the claim as “Federal Trademark Infringement” (Doc. 6, #69), the mark is registered (as further described below) in International Class 035, which applies to services, not goods. Consistent with that, the registration refers to the mark as a “Service Mark,” not a “Trademark.” (Doc. 6-1, #76). The distinction is not relevant to the Court’s disposition. In this Opinion, the Court refers to it simply as the “mark.” Court’s reliance on Couch’s allegations, though, comes with the typical caveat that at this point they are just that, allegations. Durnell, doing business as RVWholesalers, operates a dealership that sells and

performs maintenance on recreational vehicles, commonly called RVs. (Doc. 5, #56). RVW, a holding company, does not directly sell RVs but is affiliated with Durnell. (Id.; Doc. 6, #65). Couch also operates a dealership that sells and performs maintenance on RVs. (Doc. 5, #56). All are in Ohio, within about 100 miles of each other (Doc. 5, #56; Doc. 6, #65), and Durnell competes with Couch for business (Doc. 25, #196). All agree that RVW registered and purports to own the mark THE REAL

RVWHOLESALERS, Reg. No. 5615630 (“the mark”). (Doc. 5, #56). RVW licenses the mark to Durnell for the latter’s use in selling RVs. (Id.). RVW received its registration on November 27, 2018, from the United States Patent and Trademark Office (“USPTO”). (Id.). The registration specifies that the mark is registered in International Class 035, which generally applies to “advertising; business management; business administration; and office functions.” See Nice Agreement

Tenth Edition - General Remarks, Class Headings and Explanatory Notes - Version 2012, U.S. Patent & Trademark Office.2 As applied here, RVW describes its field of use as “Dealerships in the field of Recreational Vehicles.” (See Doc. 6-1, #76). In its application for the mark, RVW attested: “The applicant is using the mark in commerce on or in connection with the identified goods/services” and that “the

2 Available at https://www.uspto.gov/trademarks/trademark-updates-and-announcements/ nice-agreement-tenth-edition-general-remarks-class (last visited 1/22/2022). mark was first used by the applicant or the applicant’s related company … at least as early as 10/24/2017.”3 (Doc. 20, #165). But all agree that RVW itself has never used the mark in commerce—only Durnell has. (Doc. 5, #56–57). RVW is a holding

company with no operations. (Id. at #56). That said, Durnell uses the mark in a manner consistent with registration in International Class 035. (See id. at #56–57). Couch alleges it began using the phrase “THE REAL RV WHOLESALERS” on Google Ads starting in 2013. (Id. at #56). (The only apparent difference between RVW’s and Couch’s use is the space between “RV” and “WHOLESALERS.”) Although Couch never sought registration, Couch argues that its prior use created superior rights to THE REAL RVWHOLESALERS mark that RVW later registered and

licensed to Durnell. (Id.). Couch further asserts that it has filed, or “will shortly file,” a proceeding before the Trademark Trial and Appeal Board (“TTAB”) seeking cancellation of Plaintiffs’ mark.4 (Id. at #53). On January 19, 2022, Durnell and RVW sued Couch in state court for trademark infringement, unfair competition, and deceptive trade practices under both federal and state law. (Doc. 6). Couch removed to federal court.5 (Doc. 1). The

3 The Court takes judicial notice of the contents of RVW’s application to register the mark. Moran v. Edie Parker, LLC, 563 F. Supp. 3d 671, 677 (E.D. Mich. 2021) (recognizing that courts can take judicial notice of USPTO filings). 4 While Couch made that assertion on March 11, 2022, a search of the TTAB proceedings database reveals no pending or terminated TTAB proceeding involving Reg. No. 5615630. See Trademark Trial and Appeal Board Inquiry System, U.S. Patent & Trademark Office, https://ttabvue.uspto.gov/ttabvue/ (last visited 1/16/23). 5 The action was originally removed to the Western Division of the Southern District of Ohio. But, because the Logan County Court of Common Pleas is located in the Eastern Division of the Southern District of Ohio, the Clerk transferred the matter there. (See 3/11/22 Docket Entry). Couch moved for an intra-district transfer back to this Division, noting that both next day, Couch answered, asserting a host of affirmative defenses along with four counterclaims. Counterclaim Four, the claim at issue, is labeled “Fraud.” (Doc. 5, #60–61). In this counterclaim, Couch alleges Plaintiffs failed to disclose certain

materials facts to the USPTO and did so with the “inten[t] to procure a registration to which it was not entitled.” (Id. at #61). That said, the “Fraud” claim did not refer to a statute, nor did it say whether it proceeded under state or federal law. On April 15, 2022, Plaintiffs moved to dismiss Counterclaim Four. (Doc. 14). Treating Couch’s counterclaim as a state-law fraud claim, Plaintiffs argued Couch had not stated a claim upon which relief could be granted under Ohio law. (Id. at #119–20).

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Durnell's RV Sales, Inc. v. Jeff Couch's Campers, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/durnells-rv-sales-inc-v-jeff-couchs-campers-llc-ohsd-2023.