Georgia-Pacific Consumer Products LP v. Von Drehle Corp.

856 F. Supp. 2d 750, 2012 WL 1353545, 2012 U.S. Dist. LEXIS 44136
CourtDistrict Court, E.D. North Carolina
DecidedMarch 27, 2012
DocketNo. 5:05-CV-478-BO
StatusPublished
Cited by6 cases

This text of 856 F. Supp. 2d 750 (Georgia-Pacific Consumer Products LP v. Von Drehle Corp.) 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
Georgia-Pacific Consumer Products LP v. Von Drehle Corp., 856 F. Supp. 2d 750, 2012 WL 1353545, 2012 U.S. Dist. LEXIS 44136 (E.D.N.C. 2012).

Opinion

ORDER

TERRENCE WILLIAM BOYLE, District Judge.

This matter is before the Court on several motions filed by the parties following [753]*753jury trial. For the reasons discussed below, Defendant von Drehle’s Motion renewing its request for Judgment as a Matter of Law [DE 329] is granted. All other pending motions are denied as moot.

BACKGROUND

This matter has been before the Court in some manner for nearly seven years, and the Court has entered numerous orders recounting the specific facts and procedural posture of the case. The Court hereby incorporates by reference the background and facts of this case enumerated in its order entered March 21, 2011 [DE 238]. Commencing January 4, 2012, this matter proceeded to jury trial at Elizabeth City, North Carolina. The jury returned a verdict in favor of Plaintiff on January 6, 2012, awarding $791,431 in damages [DE 319]. Defendant filed a timely motion pursuant to Rule 50(b) of the Federal Rules of Civil Procedure, renewing its request for judgment as a matter of law made at trial.

DISCUSSION

Rule 50(b) provides that if a court does not grant a motion for judgment as a matter of law made at trial, the court is “considered to have submitted the action to the jury subject to the court’s later deciding the legal questions raised by the motion.” F.R.Civ.P. 50(b). Judgment as a matter of law is appropriately entered when “a reasonable jury would not have a legally sufficient evidentiary basis to find for [a] party on [an] issue.” F.R.Civ.P. 50(a)(1); see also Int’l Ground Transp., Inc. v. Mayor & City Council of Ocean City, 475 F.3d 214, 218 (4th Cir.2007). A court applies the same standard when deciding a Rule 50(b) motion for judgment as a matter of law as it would when deciding a Rule 56 motion for summary judgment. Dennis v. Columbia Colleton Medical Ctr., Inc., 290 F.3d 639, 644 (4th Cir.2002). That is, a court must decide whether a jury, when viewing the evidence in the light most favorable to the nonmoving party and drawing all reasonable inferences in its favor, could have reached the conclusion that was reached by this jury. Id. at 645.

At the heart of Defendant’s motion is its contention that Plaintiff has brought several lawsuits in different United States District Courts against various defendants, at least some of whom are distributors of Defendant, alleging trademark infringement with regard to Plaintiffs enMotion paper towel dispensers. Defendant contends that each of these lawsuits involves the same activity at issue in the instant matter — namely, the “stuffing” of Plaintiffs enMotion dispensers with paper towels made by paper towel manufacturers other than Plaintiff. The question submitted to the jury in this case was whether “plaintiff established by a preponderance of the evidence that the defendant infringed on plaintiffs valid trademark” [DE 319]. The jury responded to this question in the affirmative. However, because another court had previously decided this same question in the negative, this Court now holds that Defendant should be permitted to raise the affirmative defenses of claim and issue preclusion and that judgment as a matter of law is appropriate.

Arkansas and Ohio Cases

Prior to the commencement of trial, Defendant filed a second motion to amend its answer to include preclusion defenses and a renewed motion for summary judgment [DE 275 & 285]. The Court had earlier denied a similar request by Defendant that was based on a decision in the Western District of Arkansas. The Court’s denial of Defendant’s request was not on the merits of the underlying preclusion defense, but rather was due to Defendant’s sixteen month delay in raising the issue of [754]*754a preclusion defense and the potential for prejudice [DE 238]. The basis for Defendant’s second motion to amend, however, is a decision from the Northern District of Ohio, entered just four days before Defendant moved again in this Court to amend its answer.

In a ease involving Plaintiff and a distributor of Defendant, the Northern District of Ohio court held that Plaintiff had “fully and fairly litigated its claim in the Arkansas litigation that ‘stuffing’ its dispensers with competitors’ replacement rolls violated its trademark and related and other claims” and that dismissal on the basis of issue preclusion was justified. Georgia-Pacific Consumer Prods. LP v. Four-U-Packaging, Inc., 821 F.Supp.2d 948 (N.D.Ohio 2011). The Northern District of Ohio decision is based on the Eighth Circuit’s opinion affirming a Western District of Arkansas judgment that there is no likelihood of confusion, and therefore no trademark infringement, when Plaintiffs enMotion dispensers are stuffed with other manufacturer’s paper towels. Georgia Pacific Consumer Prods. LP v. Myers Supply, Inc., 621 F.3d 771 (8th Cir.2010).1

Claim and Issue Preclusion

“A fundamental precept of common-law adjudication, embodied in the related doctrines of collateral estoppel and res judicata, is that a right, question or fact distinctly put in issue and directly determined by a court of competent jurisdiction cannot be disputed in a subsequent suit between the same parties or their privies.” Montana v. United States, 440 U.S. 147, 153, 99 S.Ct. 970, 59 L.Ed.2d 210 (1979) (internal quotation and citation omitted). The doctrine of res judicata bars “ ‘repetitious suits involving the same cause of action’ once ‘a court of competent jurisdiction has entered a final judgment on the merits.’ ” United States v. Tohono O’odham Nation, — U.S. -, 131 S.Ct. 1723, 1730, 179 L.Ed.2d 723 (2011) (quoting Commissioner v. Sunnen, 333 U.S. 591, 597, 68 S.Ct. 715, 92 L.Ed. 898 (1948)). The doctrine of collateral estoppel provides that the actual and necessary determination of an issue by a court of competent jurisdiction is conclusive. Montana, 440 U.S. at 153, 99 S.Ct. 970. The doctrine of res judicata is an affirmative defense that is generally waived if not timely raised. F.R.Civ.P. 8(c); Arizona v. California, 530 U.S. 392, 410, 120 S.Ct. 2304, 147 L.Ed.2d 374 (2000).

Timeliness of Preclusion Defenses

As the Court has previously stated, the standard for allowing or denying amendments to pleadings under Rule 15 is [755]*755clear: “[mjotions to amend are committed to the discretion of the trial court.” Keller v. Prince George’s County, 923 F.2d 30, 33 (4th Cir.1991) (citing Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962)); F.R.Civ.P. 15.

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856 F. Supp. 2d 750, 2012 WL 1353545, 2012 U.S. Dist. LEXIS 44136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-pacific-consumer-products-lp-v-von-drehle-corp-nced-2012.