English Tea Shop USA Corp v. Hall

CourtDistrict Court, N.D. Texas
DecidedMay 17, 2021
Docket3:20-cv-03453
StatusUnknown

This text of English Tea Shop USA Corp v. Hall (English Tea Shop USA Corp v. Hall) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
English Tea Shop USA Corp v. Hall, (N.D. Tex. 2021).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION ENGLISH TEA SHOP USA § CORPORATION, § § Plaintiff, § § v. § CIVIL ACTION NO. 3:20-CV-3453-B § LINNETH DELROSE HALL, § § Defendant. § MEMORANDUM OPINION AND ORDER Before the Court is Defendant Linneth Delrose Hall’s Motion to Dismiss (Doc. 9). For the reasons that follow, the Court GRANTS the motion and DISMISSES this case WITHOUT PREJUDICE based on a lack of personal jurisdiction. I. BACKGROUND1 This is a trademark-infringement action arising from the sale of tea. English Tea is a California corporation that produces and sells various organic teas under the name “Tea of Life[.]” Doc. 1, Compl., ¶¶ 1, 7. English Tea partners with brick-and-mortar retailers, as well as retailers on platforms such as Amazon.com, that sell English Tea’s products. See id. ¶¶ 1, 7, 19. Through the tea sales, English Tea nets approximately $1.28 million annually. Id. ¶ 7. English Tea alleges that it “has 1 The Court draws the facts from Plaintiff English Tea Shop USA Corporation (“English Tea”)’s complaint (Doc. 1) and the exhibits submitted along with the parties’ briefing to the extent these exhibits are relevant and unchallenged. - 1 - maintained significant sales in the Dallas, Texas, area for several years[.]” Id. ¶ 1. English Tea has multiple “affiliate compan[ies]” that sell “Tea of Life” products, including Amazon Trading PVT, LLC (“ATP”), “a Texas limited liability company,” and “Tea of Life, Inc. (‘TOL’), a Texas

corporation[.]” Id. ¶¶ 13, 16. Defendant Linneth Delrose Hall (“Hall”), a New York resident, sells “medicinal teas” under the name “Tea of Life” on platforms such as Amazon.com. Id. ¶¶ 2, 8 (emphasis omitted). Hall owns the registered trademark “TEA OF LIFE[.]” Id. ¶ 9. Accordingly, when English Tea’s affiliate, ATP, applied for trademark registration “for the mark ‘TEA OF LIFE’” in 2008, the United States Patent and Trademark Office (“USPTO”) “cited Hall’s [mark] against registration [of ATP’s mark] on the basis of potential consumer confusion between the everyday drinking tea and Hall’s medicinal tea.”

Id. ¶¶ 13–14. English Tea, however, alleges that it had been using the “Tea of Life” name “for years prior to [Hall’s] purported first use in commerce.” Id. ¶ 12 (emphasis omitted). After the denial of ATP’s application for registration, ATP’s counsel “contacted Hall[.]” Id. ¶ 15. Hall’s counsel responded and “outlined Hall’s use, confirmed Hall’s first use post-dated ATP’s prior use rights and declared amenability to a coexistence agreement.” Id. Counsel for ATP and Hall then “verbally agreed to coexist.” Id.

Years later, TOL, another affiliate of English Tea, received a letter from Hall’s counsel “claiming infringement.” Id. ¶ 16. TOL’s counsel, “the same counsel that previously communicated with Hall’s counsel in 2008,” responded. See id. ¶ 17. Further, “TOL’s counsel again extended an offer to cooperate with Hall for a mutually acceptable resolution for coexistence.” Id. A little over one month later, TOL’s counsel “sent Hall a letter outlining terms for a mutual, confidential agreement of coexistence, as previously agreed,” but “Hall’s counsel did not respond[.]” Id. ¶ 18. - 2 - English Tea, Hall, ATP, and TOL thereafter “co-existed” for over eight years. Id. Then, in September 2020, English Tea discovered that Hall submitted “takedown notices” via Amazon.com to two of English Tea’s buyer–retailers. See id. ¶¶ 19–20, 42. The first retailer

received a “trademark infringement takedown notice from Amazon.com” stating that “either [Hall] must file a retraction, or the retailer must provide supporting documentation” authorizing its use of Hall’s mark. Id. ¶ 19. The second “received a notice of infringement from Amazon.com” placing English Tea’s product “on hold” until Hall filed a retraction or the retailer provided “proof of authenticity[.]” Id. ¶ 20. Based on these takedown notices, English Tea filed an action against Hall in this Court, asserting claims for: (1) declaratory judgment of non-infringement; (2) declaratory judgment of fraud

on the USPTO; (3) cancellation of Hall’s mark; (4) tortious interference with existing business relationships; (5) tortious interference with prospective business relationships; and (6) breach of implied contract. Id. ¶¶ 23–51. English Tea also requests a preliminary and permanent injunction against Hall. Id. ¶¶ 54–57. On December 2, 2020, English Tea’s counsel emailed Hall the complaint and requested a waiver of formal service. See Doc. 14-3, Ex. B, ¶ 2; Doc. 14-4, Ex. 1, 2. When English Tea did not

receive a waiver, English Tea’s counsel asked Hall’s counsel: “Will you [be] accepting service on behalf of Ms. Hall?” Doc. 14-6, Ex. 3, 2. On December 14, 2020, Hall’s counsel responded, “Yes. We’ll accept service.” Doc. 14-7, Ex. 4, 2. Hall filed a motion to dismiss (Doc. 9) on February 1, 2021, seeking dismissal of English Tea’s complaint based on a lack of personal jurisdiction, improper venue, and English Tea’s failure to state a claim upon which relief may be granted. One day later, she filed a supplement to her motion to - 3 - dismiss (Doc. 10), along with additional evidence (Doc. 11). English Tea timely filed a response (Doc. 14) to Hall’s motion, and Hall’s deadline to file a reply brief has passed. Accordingly, Hall’s motion is ripe for review.2

II. LEGAL STANDARD A plaintiff bears the burden of establishing a trial court’s personal jurisdiction over each defendant. Stuart v. Spademan, 772 F.2d 1185, 1192 (5th Cir. 1985). A plaintiff need only establish a prima facie case of jurisdiction; proof by a preponderance of the evidence is not required. Wien Air Alaska, Inc. v. Brandt, 195 F.3d 208, 211 (5th Cir. 1999); Jones v. Petty-Ray Geophysical, Geosource, Inc., 954 F.2d 1061, 1067 (5th Cir. 1992). To satisfy its burden, the plaintiff must “present sufficient

facts as to make out only a prima facie case supporting jurisdiction” if a court rules on a motion to dismiss without an evidentiary hearing. Cunningham v. CBC Conglomerate, LLC, 359 F. Supp. 3d 471, 476 (E.D. Tex. 2019) (italics added and quotation marks omitted) (quoting Alpine View Co. v. Atlas Copco AB, 205 F.3d 208, 215 (5th Cir. 2000)). In considering a motion to dismiss for lack of personal jurisdiction, the Court takes the allegations in the plaintiff’s complaint “as true except to the extent that they are contradicted by

defendant’s affidavits.” Int’l Truck & Engine Corp. v. Quintana, 259 F. Supp. 2d 553, 557 (N.D. Tex. 2003) (citing Wyatt v. Kaplan, 686 F.2d 276, 282–83 n.13 (5th Cir. 1982)). Further, “[a]ny genuine, material conflicts between the facts established by the parties’ affidavits and other evidence are resolved in favor of plaintiff for the purposes of determining whether a prima facie case exists.” Id.

2 As explained below, the Court dismisses this case based on a lack of personal jurisdiction. Thus, it does not reach Hall’s remaining arguments for dismissal. - 4 - (citing Jones, 954 F.2d at 1067). In establishing personal jurisdiction, two preconditions must be met: (1) the nonresident defendant must be amenable to service of process under the Texas long-arm statute; and (2) the

assertion of jurisdiction over the nonresident must comport with the Due Process Clause of the United States Constitution. Jones, 954 F.2d at 1067.

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English Tea Shop USA Corp v. Hall, Counsel Stack Legal Research, https://law.counselstack.com/opinion/english-tea-shop-usa-corp-v-hall-txnd-2021.