Exclaim Marketing, LLC v. DirecTV, LLC

134 F. Supp. 3d 1011, 2015 U.S. Dist. LEXIS 132935, 2015 WL 5773586
CourtDistrict Court, E.D. North Carolina
DecidedSeptember 30, 2015
DocketNo. 5:11-CV-684-FL
StatusPublished
Cited by6 cases

This text of 134 F. Supp. 3d 1011 (Exclaim Marketing, LLC v. DirecTV, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Exclaim Marketing, LLC v. DirecTV, LLC, 134 F. Supp. 3d 1011, 2015 U.S. Dist. LEXIS 132935, 2015 WL 5773586 (E.D.N.C. 2015).

Opinion

■ORDER

LOUISE W. FLANAGAN, District Judge.

This matter is before the court on defendant’s second motion for judgment as a matter of law, made pursuant to Federal Rule of Civil Procedure 50(b), or in the alternative for a new trial on the question of damages. (DE 209). Also pending before the court is defendant’s first motion for judgment as a matter of law, (DE 175), and plaintiffs oral motion for judgment as a matter of law, both made pursuant to Federal Rule of Civil Procedure 50(a) and preserved for decision pursuant to Federal Rule of Civil Procedure 50(b). The issues raised have been briefed fully and in this posture are ripe for ruling. For the reasons stated more specifically herein, plaintiffs oral motion is denied, defendant’s second motion for judgment as a matter of law is granted, and the jury’s award of damages to plaintiff is vacated.1

BACKGROUND

On October 28, 2011, plaintiff, a marketing company engaged in the business of connecting consumers with retailers of satellite television, filed complaint in the Wake County, North Carolina, Superior Court, against defendant, a provider of satellite television, alleging numerous causes of action arising out of defendant’s attempts to interfere with plaintiffs business relationships with its clients. Plaintiff asserted common law causes of action for tortious interference with contract, tor-tious interference with business relationships and prospective business advantage, and defamation, as well as a statutory cause of action for violation of the North Carolina Unfair and Deceptive Practices Act (“UDPA”), N.C. Gen.Stat. § 75-1.1 et [1016]*1016seq. Plaintiffs UDPA claim rested on various grounds including numerous allegedly false or misleading statements or categories of statements made by defendant to plaintiffs clients, as well as the fact defendant, through its agents or employees, made in excess of 175 phone calls to plaintiffs call center, sometimes using false names, over the course of six years. On December 1, 2011, defendant removed the matter to this court, pursuant to 28 U.S.C. § 1441, invoking the court’s diversity of citizenship jurisdiction under 28 U.S.C. § 1332, where the parties are business entities organized under the laws of different states, with their principal places of business in different states, and the amount in controversy exceeded $75,000.00. Thereafter, defendant answered and asserted various counterclaims against plaintiff. As relevant to the instant analysis, defendant alleged plaintiff willfully infringed on its trademark, the name “DirecTV,” in violation of 15 U.S.C. § 1114.

The facts pertinent to the present motion, drawn from the court’s order on summary judgment, supplemented through testimony received at trial, may be summarized as followed. Plaintiff is a marketing company that provides its clients, including consumer satellite television retailers (“retailers”), marketing services through telephone numbers (“listings”) published throughout the United States. When consumers call a listing, a telemarketer screens the call and determines what the customer wants to purchase, then the telemarketer forwards the call to one of plaintiffs clients. Plaintiffs clients pay for each call forwarded.

Defendant provides satellite television services throughout the United States. One way in which it gains new customers is through use of various retailers who market, advertise, and promote defendant’s products and services. Defendant has the discretion to choose its affiliated retailers. Once it does so, defendant enters into a contract with those affiliated retailers that imposes certain restrictions on the individual retailer’s marketing services, including a restriction that requires the retailers obtain written approval before using third parties, such as plaintiff, to market defendant’s products. In 2005, plaintiff approached defendant seeking written approval to act in that capacity. Defendant neither retained plaintiffs services nor gave plaintiff written approval to act as a third-party marketing service for its retailers. Despite that fact, as early as 2007, plaintiff had purchased a number of phone book listings, associated with approximately 30 unique number, under defendant’s trademark, “DirecTV,” or some variant thereof (“infringing” or “branded” listings). These branded listings made up a small portion of plaintiffs total listings, most of which were “generic” advertisements for “satellite television.” The generic listings did not use defendant’s trademark.

Defendant, upon learning of these branded listings, believing that they were in violation of its trademark, began calling the numbers in an effort to identify who purchased them., Those calls were made by two parties. At first, defendant used Ketchum Marketing (“KDA”), a third-party agency, to investigate the listings. After a period of time Kristin Haley (“Haley”), one of defendant’s employees, also began making calls to various listings. Around that same time, KDA and Haley also began calling some “generic” listings, several of which also belonged to plaintiff. Of those generic listings plaintiff owned, which also were called by KDA or Haley, the listing contained no evidence of plaintiffs ownership. In any case, during some of these calls to branded and generic listings, either KDA or Haley gave the telemarketer handling the call a false name. Occasionally, either KDA or Haley would [1017]*1017stay on the call long enough to be transferred to one of plaintiffs retailer clients. Defendant never purchased satellite television services from those retailers. Rather, each time defendant would hang up without buying anything.

Through the progress of this case, plaintiffs claims have been parred down or otherwise refined for purposes of trial. On July 24, 2012, the court entered order granting in part and denying in part a motion to dismiss filed by defendant, made pursuant to Federal Rule of Civil Procedure 12(b)(6). The court dismissed plaintiffs tortious interference claims, but otherwise allowed the complaint to progress. Later, on March 31, 2014, the court entered order on the parties’ cross-motions for summary judgment. As pertinent to the instant analysis, the court granted summary judgment in favor of defendant on plaintiffs defamation claim, holding that action was barred by the applicable one-year statute of limitations. However, the court granted in part and denied in part defendant’s motion for summary judgment as to plaintiffs UDPA claim. The court held that six of the allegedly false statements or categories of statements potentially were actionable.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

JTH Tax LLC v. Serbus
E.D. North Carolina, 2022
Laschkewitsch v. Legal & General America, Inc.
247 F. Supp. 3d 710 (E.D. North Carolina, 2017)
Exclaim Marketing, LLC v. DIRECTV, LLC
674 F. App'x 250 (Fourth Circuit, 2016)
Davis v. State Farm Life Insurance
163 F. Supp. 3d 299 (E.D. North Carolina, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
134 F. Supp. 3d 1011, 2015 U.S. Dist. LEXIS 132935, 2015 WL 5773586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exclaim-marketing-llc-v-directv-llc-nced-2015.