Finance Investment Co. (Bermuda) Ltd. v. Geberit Ag

165 F.3d 526, 49 U.S.P.Q. 2d (BNA) 1289, 42 Fed. R. Serv. 3d 515, 1998 U.S. App. LEXIS 31728
CourtCourt of Appeals for the Seventh Circuit
DecidedDecember 23, 1998
Docket97-2603
StatusPublished
Cited by53 cases

This text of 165 F.3d 526 (Finance Investment Co. (Bermuda) Ltd. v. Geberit Ag) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Finance Investment Co. (Bermuda) Ltd. v. Geberit Ag, 165 F.3d 526, 49 U.S.P.Q. 2d (BNA) 1289, 42 Fed. R. Serv. 3d 515, 1998 U.S. App. LEXIS 31728 (7th Cir. 1998).

Opinion

165 F.3d 526

49 U.S.P.Q.2d 1289

FINANCE INVESTMENT CO. (BERMUDA) LTD., et al.,
Plaintiffs-Appellants-Cross-Appellees,
and
Andrew J. Goodman and Frederick Eichhorn, Appellants-Cross-Appellees,
v.
GEBERIT AG, et al., Defendants-Appellees-Cross-Appellants.

Nos. 95-2871, 97-2603, 97-2685.

United States Court of Appeals,
Seventh Circuit.

Argued April 2, 1998.
Decided Dec. 23, 1998.

Andrew J. Goodman (argued), Marianne F. Murray, Rosner & Goodman, New York, NY, for Financial Inv. Co., Closomat, Inc., and Joseph Muller Corp. Zurich, in No. 95-2871.

R. Clifford Potter (argued), Freeborn & Peters, Julius Pohlenz, Potter & Thorelli, Chicago, IL, for Geberit AG, Geberit, Inc., and Faenza Editrice Iberica S.L. in Nos. 95-2871 and 97-2685.

Andrew J. Goodman (argued), Rosner & Goodman, New York, NY, for Financial Inv. Co., Closomat, Inc., and Joseph Muller Corp. Zurich, in Nos. 97-2603 and 97-2685.

R. Clifford Potter (argued), Freeborn & Peters, Chicago, IL, John J. Lorber, May, Oberfell & Lorber, South Bend, IN, for Geberit AG and Geberit Mfg., Inc. in No. 97-2603.

Marianne F. Murray, Rosner & Goodman, New York, NY, for Andrew J. Goodman and Frederick Eichhorn in No. 97-2603.

Frederick Eichhorn, Hammond, IN, pro se, in No. 97-2603.

Andrew J. Goodman, Rosner & Goodman, New York, NY, for Frederick Eichhorn and Andrew J. Goodman in No. 97-2685.

Before MANION, ROVNER, and DIANE P. WOOD, Circuit Judges.

DIANE P. WOOD, Circuit Judge.

Almost the only thing left of this case, which originally involved a dispute about trademark rights, is a peripheral fight over sanctions and attorneys' fees. The present appeals are from an order granting $100,000 in sanctions against three plaintiffs and holding the plaintiffs' lead counsel jointly liable for 25% of that amount. The plaintiff-appellants have also made a perfunctory argument that the district court should not have granted summary judgment to the defendant, but those arguments, which consume exactly eight lines of a 45-page brief, are undeveloped and therefore waived. Colburn v. Trustees of Indiana Univer., 973 F.2d 581, 593 (7th Cir.1992). The defendants have cross-appealed, seeking to have the plaintiffs' lead counsel (and his law firm) held jointly liable for the full amount of the sanctions, to have the amount of sanctions increased to $800,000, and to subject the plaintiffs' local counsel to some amount of sanctions as well. We find no abuse of discretion in the district court's decision to grant sanctions, and we therefore affirm its decision on the appeal. Because the judge did not offer any explanation for the amount he chose, however, we remand for his further consideration of that point.

* Hans Maurer AG ("Maurer") is a Swiss company that holds the patent and trademark rights to the CLOSOMAT brand of toilet designed for "paperless" use. Maurer licensed its invention to one of the plaintiffs, the Finance & Investment Company ("FIC"). The other two plaintiffs in this lawsuit--Closomat U.S. ("Closomat") and the Joseph Muller Corporation Zurich ("JMCZ")--were authorized distributors of the CLOSOMAT toilet (not, it may be worth noting, sublicensees). Joseph Muller controlled all three of the plaintiff companies, but Muller himself is not a party to this lawsuit. For the sake of simplicity, we will refer to the plaintiffs collectively as the Muller companies. Evidently, Maurer's effort to develop and sell a "paperless" toilet was not purely quixotic. The defendant companies, Geberit Manufacturing Inc. and its parent Geberit AG (collectively, "Geberit," which is a large Swiss manufacturer of plumbing equipment), apparently hold the rights to a competing "paperless" toilet of their own. In fairness to the concept of "paperless" toilets--which some skeptics have likened to the elusive "paperless office," see David Harrison, The Observer, Oct. 5, 1997--we note the existence of a niche market for the physically disabled, see Eric Rich, State of the Art House Accommodates Age-Related Disabilities, Hartford Courant, June 21, 1998, and the fact that there is apparently a growing market outside the United States for these devices. See Harry Bruce, Ottawa Citizen, Jan. 21, 1989 (stating that the $5,000 toilets are "getting popular" in Europe).

The trouble giving rise to this lawsuit began with an article that appeared in the March 1989 issue of Sala Bano, a bathroom fixtures trade magazine distributed mostly in Europe but with a small circulation in the United States. The article pictured a Geberit toilet but repeatedly and incorrectly referred to it as a "Geberit, series 'Closomat' " device. When Muller learned of the article's misidentification of the Geberit product, he complained to the editors of Sala Bano, who apologized in a letter. Unmollified, Muller caused FIC, Closomat, and JMCZ to sue Geberit and the publishers of Sala Bano, Faenza Editrice Iberica S.L. ("Faenza"), in January 1992 in the U.S. District Court for the Southern District of Florida. The Florida complaint alleged that Geberit (with Faenza's negligent assistance) had violated various provisions of the Lanham Act. The Muller companies sought injunctive relief and damages of "no less than" $12,000,000 plus treble damages and attorneys' fees. Lead counsel Andrew Goodman signed these pleadings for the plaintiffs.

Geberit officials filed uncontested affidavits at summary judgment swearing that they had nothing to do with the Sala Bano article. In December 1992, the Florida court entered summary judgment in favor of Geberit. It found that the plaintiffs' failure to controvert the Geberit affidavits left nothing in the record suggesting that the company had committed a tort in the state of Florida, and thus it concluded that the court lacked in personam jurisdiction over Geberit. The plaintiffs filed a motion for reconsideration under Fed.R.Civ.P. 60(b); Geberit responded with a motion for sanctions and entry of judgment under Fed.R.Civ.P. 54(b). In February 1993, the court denied the plaintiffs' Rule 60(b) motion, granted Geberit's Rule 54(b) motion, and denied the motion for sanctions. The plaintiffs appealed the Rule 54(b) final judgment to the Eleventh Circuit, which affirmed per curiam without opinion. Finance & Investment Co. v. Geberit, 11 F.3d 167 (11th Cir.1993). The Florida district court did not enter a judgment on the plaintiffs' claims against Faenza.

In April 1993, a few months after the Florida court granted summary judgment, the same Muller companies filed a substantially identical complaint against Geberit in the U.S. District Court for the Northern District of Indiana. (One of the Geberit companies maintains its principal place of business in Indiana.) Again, lead counsel Goodman signed the complaint, though he was joined this time by local counsel Frederick Eichhorn.

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165 F.3d 526, 49 U.S.P.Q. 2d (BNA) 1289, 42 Fed. R. Serv. 3d 515, 1998 U.S. App. LEXIS 31728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/finance-investment-co-bermuda-ltd-v-geberit-ag-ca7-1998.