Eastpointe DWC, L.L.C. d/b/a Detroit Wing Company v. Wing Snob Inc.

CourtDistrict Court, E.D. Michigan
DecidedSeptember 30, 2021
Docket2:19-cv-13768
StatusUnknown

This text of Eastpointe DWC, L.L.C. d/b/a Detroit Wing Company v. Wing Snob Inc. (Eastpointe DWC, L.L.C. d/b/a Detroit Wing Company v. Wing Snob 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
Eastpointe DWC, L.L.C. d/b/a Detroit Wing Company v. Wing Snob Inc., (E.D. Mich. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

EASTPOINTE DWC, LLC d/b/a DETROIT WING COMPANY,

Plaintiff, No. 19-13768

v. Hon. Nancy G. Edmunds

WING SNOB INC., and WING SNOB FRANCHISING, LLC,

Defendants. _______________________________________/

OPINION AND ORDER DENYING IN PART AND GRANTING IN PART DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT [71]

Plaintiff Eastpointe DWC, LLC d/b/a Detroit Wing Company (“DWC”) filed suit against Defendants Wing Snob Inc. and Wing Snob Franchising, LLC (collectively referred to as “Wing Snob”), bringing claims of trademark and trade dress infringement, unfair competition, and false advertising under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), as well as claims of trademark infringement and unfair competition under Michigan common law, unfair and deceptive trade practices under the Michigan Consumer Protection Act (“MCPA”), and copyright infringement under the Copyright Act, 17 U.S.C. §§ 101-1401. (ECF No. 3.) The Court previously denied Plaintiff’s motion for preliminary injunction on its trade dress and trademark infringement and copyright infringement claims. (ECF No. 44.) The matter is now before the Court on Defendants’ motion for summary judgment. (ECF No. 71.) Plaintiff opposes the motion. (ECF Nos. 75, 76, 77.) Defendants have filed a reply. (ECF Nos. 84, 85.) Plaintiff has also filed a supplemental brief, (ECF No. 98), which Defendants have responded to, (ECF No. 99). The Court finds that the facts and legal arguments are adequately presented in the motions and briefs and that the decision process would not be significantly aided by oral argument. Therefore, pursuant to Eastern District of Michigan Local Rule 7.1(f)(2), Defendants’ motion will be resolved without oral argument. For the reasons discussed below, the Court DENIES IN PART and GRANTS IN PART Defendants’ motion for

summary judgment. I. Background Plaintiff opened its first restaurant, specializing in chicken wings, in the Detroit area in 2015. (ECF No. 10-2.) In 2017, Defendants’ owners, Brian Shunia and Jack Mashini, approached Plaintiff regarding whether it would consider selling franchises. They were given a tour by Gus Malliaras, but Plaintiff indicated it was not interested in selling franchises and declined the offer. After finding an old pizza shop in Livonia, Mr. Shunia once again approached and asked Plaintiff if it would be interested in selling a franchise, but Plaintiff declined. Several weeks later, Mr. Shunia contacted Plaintiff for a third time.

According to Plaintiff, Mr. Shunia stated that he signed a lease and was moving forward with opening a similarly-themed, chicken wing restaurant. He asked Plaintiff if it would be its consultant, but Plaintiff refused to help him. According to Mr. Malliaras’ affidavit, “after [he] declined to assist Mr. Shunia, he told [him] he was just going to open a similar chicken wing restaurant.” See id. Mr. Malliaras understood this to mean that “he was going to intentionally copy [Plaintiff]’s business.” Id. Discovery has revealed that on the same day of the tour, earlier in the day, Mr. Shunia had sent a message to John Tiley, who owns and operates the branding and advertising company utilized by Defendants, informing him that “We’re gonna start from scratch. Need, menu design, logo design, website, online ordering . . . .” (ECF No. 76, PageID.2397.) Along with this message was a picture of a handwritten menu that matched Plaintiff’s wing items and prices. Later that day, after the tour, Mr. Shunia texted Mr. Tiley, stating “going with the wings menu concept. Period.” (Id. at PageID.2410.) After Defendants opened their first location, Mr. Malliaras visited it with his

marketing agent. (ECF No. 10-2; see also ECF No. 10-3.) They state that they noticed the same colors, similar logos, and similar horizontal wood slats on the wall. They further state that they heard Defendants’ owner tell a customer that all of Defendants’ sauces were made from scratch, but after the customer left, Mr. Shunia admitted that he does not make the sauces from scratch but rather uses bottled sauces. Plaintiff also states that they noticed that Defendants had copied its menus, its menu’s trade dress, and its online ordering method. Mr. Shunia has testified that although he met with Mr. Malliaras and toured his restaurant, he “never represented to him an intent to copy his business in any way.” (ECF

No. 20-2; see also ECF No. 60-1, PageID.1238.) He also states that the current four Wing Snob locations are in rented spaces and therefore Defendants did not design the exterior. He also attests that the chicken art logo was designed by a third party prior to Plaintiff filing its copyright application, and that Defendants in fact had no prior knowledge of this chicken logo until the filing of this lawsuit. Mr. Shunia also states that Mr. Tiley designed the Wing Snob circular logo. Mr. Shunia notes the differences between the logos as well as the interior décor of the restaurants. Plaintiff alleges that customers were and continue to be confused about whether Plaintiff is affiliated with Defendant. In support of this assertion, Plaintiff cites to statements from Plaintiffs principal, Mr. Malliaras, as well as store owners describing instances of confusion. Employees have also indicated there were instances during which food delivery workers came to Plaintiff's restaurant and asked for food orders that were made for Defendant's restaurants. (ECF No. 22-3.) Another employee interacted with two customers who expressed confusion between the two. (ECF No. 22-4.) There are also social media posts from confused customers. (ECF No. 36.) For example, in one tweet, an individual asked, “So wing snob and Detroit Wing Company is the same thing?” The logos at issue are the following: Plaintiff's circular logo: Defendants’ circular logo:

Sssoll ay ‘SF STE mit re) □□ AL SS

Plaintiff's chicken logo: Defendants’ chicken logo:

oo Aa ot Ml A aw Ch 3 Tt Lalo j= { fe ee ar rie ute) 2: coo i SWEET HEAT □□ \ BUFFALO! y vide NR ATS ne ee ms, oy ES eae

Plaintiff’s trademark for its circular logo was registered on November 24, 2020. (ECF No. 75-2, PageID.2289.) And Plaintiff’s trademark for its chicken logo was registered on June 1, 2021. (ECF No. 98-2, PageID.2833.) Plaintiff’s copyright in its chicken logo was registered on December 9, 2019. (ECF No. 3-1.) As the basis for its false advertising claim, Plaintiff points to a Facebook posting in

which Defendants state they offer “Famous house made Sauces” and “24hr marinated chicken.” Plaintiff notes that according to the testimony, Defendants do not make their sauces from scratch, as it does, nor do they marinate their chicken for twenty-four hours. II. Legal Standard Summary judgment under Federal Rule of Civil Procedure 56(a) is proper when “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” When reviewing the record, “‘the court must view the evidence in the light most favorable to the non-moving party and draw all reasonable inferences in its favor.’” United States S.E.C. v. Sierra Brokerage Servs., Inc., 712 F.3d 321, 327 (6th Cir.

2013) (quoting Tysinger v. Police Dep’t of Zanesville, 463 F.3d 569, 572 (6th Cir. 2006)).

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Eastpointe DWC, L.L.C. d/b/a Detroit Wing Company v. Wing Snob Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/eastpointe-dwc-llc-dba-detroit-wing-company-v-wing-snob-inc-mied-2021.