Gerffert Co. v. Dean

41 F. Supp. 3d 201, 2014 U.S. Dist. LEXIS 121606, 2014 WL 4258275
CourtDistrict Court, E.D. New York
DecidedAugust 29, 2014
DocketNo. 09-CV-266 (PKC)
StatusPublished
Cited by2 cases

This text of 41 F. Supp. 3d 201 (Gerffert Co. v. Dean) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gerffert Co. v. Dean, 41 F. Supp. 3d 201, 2014 U.S. Dist. LEXIS 121606, 2014 WL 4258275 (E.D.N.Y. 2014).

Opinion

MEMORANDUM & ORDER

PAMELA K. CHEN, District Judge.

[[Image here]]

[204]*204The main question raised by Defendants’ summary judgment motion is: were The Gerffert Company, Inc.’s catalogs2 for religious products, featuring the iconic artwork of Fratelli Bonella,3 protectable trade dress infringed upon by William J. Hirten Co., LLC’s catalogs4 for the same product line? Because the Court answers this question in the negative, it grants summary judgment in favor of Defendants on Plaintiffs’ federal Lanham Act claim, and declines to exercise supplemental jurisdiction over their state-law claims.5

I. Background6

A. The Facts7

Plaintiff The Gerffert Company, Inc. (“Gerffert”), during the time period relevant to this lawsuit, was a New York distributor of Catholic-themed religious products, including prayer cards and framed prints. (Dkt. No. 335-1 (“Panigel Deck”) ¶ 3.) As of 1984, Gerffert’s owner and president was Plaintiff Stephen Panigel (“Panigel”). (Id. ¶¶ 3, 11.) Defendant James Dean (“Dean”) was first employed by Gerffert, from 1988 to 2005, as an independent sales representative8 and then, beginning in 2005, as an actual employee. (Defs.’ 56.1 ¶ 64.) Defendant Fratelli Bonella [205]*205(“Bonella”), an Italian company, produces religious artwork. (Id. ¶ 1.) Since 2005, Bonella’s owners have been Defendant Andrea Bonella (“Andrea”) and three other members of the Bonella family. (Id.)

For approximately five decades, between the late 1950s and May 2007, Gerffert served as the sole distributor of Bonella artwork in the United States.9 (Id. ¶ 2.) In particular, Gerffert developed and sold products that incorporated Bonella artwork (“Bonella-related products”). (Id. ¶ 70; Panigel Deck ¶¶ 25-27.) According to Panigel, Gerffert also devised a “unique numbering system” for Bonella-related products, consisting of (i) a “series” identifier for the type of product (e.g., “81” for prints in 10-inch by 12-inch walnut frames; “800” for English-language laminated holy cards; “M” for non-gold micro-perforated prayer cards; “FM” for magnetic framed prints; “KC” for key chains) followed by (ii) a three-digit “image” number for the Bonella artwork.10 (Panigel Deck ¶¶ 3, 29, 32, 34, 40, 43, 45, 47-48.)

In terms of Gerffert’s marketing, Plaintiffs allege, but do not provide any evidence to establish, that Gerffert, in general, spent “in the millions of dollars” on “publicity and promotion of [its] products and services.” (Dkt. No. 1 (“Compb”) ¶¶ 112, 115.) Plaintiffs further allege that such marketing entailed “the use of catalogs, membership in trade groups and appearances at annual trade shows and conventions” by Gerffert, without indicating what portion of its advertising expenditures went toward catalogs for Bonellarelated products.11 (Id. ¶ 114.)

[206]*206Gerffert incorporated certain basic elements consistently throughout its catalogs for Bonella-related products: a decorative cover; general descriptions of the products in the series, including their dimensions and composition, atop every page; individual photographs for the products, arranged in rows on a solid background; and a series identifier and image number below each photograph. (See Defs.’ Ex. 4, at Ex. K; Pls.’ Ex. L; Pls.’ Ex. O; Pls.’ Ex. EE.)

But, in other ways, these catalogs also varied widely in their designs. First, one of these catalogs had a cover that bore the Gerffert and Bonella logos, reproduced below, and the Bonella slogan (“The World’s Very Best”) (Pis.’ Ex. EE); another only bore on its cover the Bonella logo and slogan, with no reference to Gerffert (Pis.’ Ex. 0); a different one had a cover that only bore the Gerffert logo, but referenced “The Bonella Line” (Defs.’ Ex. 4, at Ex. K); and a fourth had a cover that only bore the Gerffert logo, with no reference to Bonella (Pis.’ Ex. L).

Second, two catalogs had copyright stamps for Bonella, not Gerffert, at the bottom of every page (Pls.’ Ex. O; Pls.’ Ex. EE); another had a disclaimer of copyrights belonging to Bonella and Gerffert beneath the table of contents (Defs.’ Ex. 4, at Ex. K); and one attributed no copyrights to Bonella whatsoever (Pls.’ Ex. L).

There is no evidence of Gerffert’s success in generating sales from Bonella-related products, except for Panigel’s inapposite statement that its sales from all product lines “eventually reach[ed] over $5,000,000.00 annually.” (Panigel Decl. ¶ 50.) The evidence, in fact, belies such success. Starting in and around 2000, although Gerffert continued to send out its catalogs for Bonella-related products to customers,12 Gerffert’s sales of these products declined. For instance:

• Panigel acknowledges that there was growing concern among the Bonella family about Gerffert’s “falling sales” of Bonella-related products, beginning in “about January 2000.” (Id. ¶ 52 (emphasis added); see also Comph ¶ 27 (same).)
• In July 2004, the Bonella family stated, in a letter to Panigel, that “the survival of Fratelli Bonella itself is in danger,” citing the fact that “the business is not increasing but strongly decreasing” and that, since 1995, Bonella had “lost 70% of [its] profitability in [the] USA.” (Pis.’ Ex. Q (emphasis added).) According to this letter, with annual sales of $1.2 million in 2003, Gerffert’s line of Bonella-related products failed to generate any profit; and, with annual sales of $876,000 in 2002 and projected annual sales of $900,000 in 2004, respectively, the product line actually lost money. (Id.)
• In an e-mail later that month, the Bonella family stated that “the time of the big monthly orders [of Bonella-related products] is over” and that they, along with Gerffert, needed a [207]*207“way to substitute the decrease in our traditional products.” (Pis.’ Ex. S (emphasis added).)
• In May 2007, Panigel e-mailed the Bonella family, stating that he had endeavored to “salvage the situation” with respect to “sales of the Bonella line” which needed to be improved. (Compl., at Ex. C, at ECF 52.)

In August 2007, against this backdrop of declining, and increasingly unprofitable, sales in Bonella-related products by Gerffert, a new company, William J. Hirten Company, LLC (“New Hirten”), was created by Andrea, Dean, and Defendant Dolores King (“'King”).13 (Defs.’ 56.1 ¶ 42; Defs.’ Ex. Rl-15 ¶ 18.) According to Panigel, New Hirten began selling, and immediately replaced Gerffert as the sole distributor of, these products.14 (See Panigel Deck ¶ 76 (stating that, although Bonella “used New Hirten as its exclusive distributor in the United States” as of August 2007, Gerffert remained a “valid, existing entity ready, willing, and able to distribute Fratelli Bonella artwork”).) Indeed, in November 2007, Panigel formally instructed Bonella to bill and ship any future orders of Bonella artwork to New Hirten, instead of Gerffert. (Defs.’ 56.1 ¶¶ 50-51.)

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
41 F. Supp. 3d 201, 2014 U.S. Dist. LEXIS 121606, 2014 WL 4258275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerffert-co-v-dean-nyed-2014.