Gibson, Inc. v. Armadillo Distribution Enterprises, Inc.

District Court, E.D. Texas·Decided July 24, 2020·No. 4:19-cv-00358·Unknown

Opinion

United States District Court EASTERN DISTRICT OF TEXAS SHERMAN DIVISION

GIBSON BRANDS, INC. § Plaintiff, § v. § Civil Action No. 4:19-CV-00358 § Judge Mazzant ARMADILLO DISTRIBUTION § ENTERPRISES, INC.; CONCORDIA § INVESTMENT PARTNERS, LLC. § Defendants. § §

MEMORANDUM OPINION AND ORDER Pending before the Court is Armadillo Distribution Enterprises, Inc.’s Motion to Strike Gibson Brands, Inc.’s Affirmative Defenses of Laches and Estoppel (Dkt. #96) and Concordia Investment Partners, LLC’s Motion to Strike Gibson Brands, Inc.’s Affirmative Defenses of Laches and Estoppel (Dkt. #112). Having considered the motions and the relevant pleadings, the Court finds that Defendants’ Motions should be DENIED. BACKGROUND Plaintiff Gibson Brands, Inc. (“Gibson”) accuses Armadillo Distribution Enterprises, Inc. (“Armadillo”) and Armadillo’s investment licenser, Concordia Investment Partners, Inc. (“Concordia”) (collectively, “Defendants”), of counterfeiting seven Gibson trademarks (Dkt. #74). The Court granted Gibson’s Motion to Amend its Second Amended Complaint on December 2, 2019 (Dkt. #75). In Plaintiff’s Amended Complaint, Gibson alleges Defendants copied the “Flying V Body Shape” Trademark (U.S. Reg. No. 2051790), “Explorer Body Shape” Trademark (U.S. Reg. No. 2053805), “SG Body Shape” Trademark (U.S. Reg. No. 2215791), “Dove Wing Headstock” Trademark (U.S. Reg. No. 1020485), “HUMMINGBIRD” Trademark (U.S. Reg. No. 1931670), “FLYING V” Trademark (U.S. Reg. No. 1216644), and “MODERNE” Trademark (U.S. Reg. No. 3588609) (collectively, “Gibson Trademarks”) (Dkt. #74). In its Amended Complaint, Gibson claims Defendants are, or have been, advertising “Unauthorized Products” bearing the Gibson Trademarks through websites, distributors, and catalogs in violation of the Lanham Act (Dkt. #74). On December 16, 2019, Armadillo filed its Answer to Gibson’s Second Amended

Complaint, Affirmative Defenses, and Counterclaims (Dkt. #77). Gibson responded, on December 30, 2019, by filing its Partial Answer and Affirmative Defenses (Dkt. #85). On December 16, 2019, Concordia filed its Answer to Gibson’s Second Amended Complaint, Affirmative Defenses, and Counterclaims (Dkt. #80). Concordia and Armadillo both plead counterclaims for cancellation of Gibson’s “Flying V,” “Explorer,” “ES-335,” and “SG” trademark registrations on the grounds that those shapes are commonplace and generic (Dkt. #77; Dkt. #80). Gibson responded, on January 6, 2020, by filing its Answer and Affirmative Defenses (Dkt. #92). In Gibson’s Answers to Defendants, Gibson pleads the affirmative defenses of laches and estoppel for Defendants’ counterclaims for cancellation (Dkt. #85); (Dkt. #92). Gibson asserts

that Defendants have unreasonably delayed “in asserting that the Gibson Trademarks are generic” (Dkt. #85; Dkt. #92). On January 1, 2020, Armadillo filed its Motion to Strike Gibson’s Affirmative Defenses of Laches and Estoppel (Dkt. #96). On January 27, 2020, Concordia filed its Motion to Strike Gibson’s Affirmative Defenses of Laches and Estoppel (Dkt. #112). Defendants assert that the defenses of laches and estoppel are invalid as a matter of law against genericness claims under § 1064(3) of the Lanham Act because the “at any time” language acts as a bar to equitable defenses (Dkt. #96; Dkt. #112). Gibson replied to Armadillo’s Motion on January 24, 2020 by filing its Opposition to Armadillo’s Motion to Strike Gibson’s Affirmative Defenses of Laches and Estoppel (Dkt. #105). On February 10, 2020, Gibson also replied to Concordia’s Motion when it filed its Opposition to Concordia’s Motion to Strike Gibson’s Affirmative Defenses of Laches and Estoppel (Dkt. #124). Gibson argues that Defendants are incorrect in their assertion that laches and estoppel are invalid

as a matter of law against genericness claims (Dkt. #105; Dkt. #124). Specifically, Gibson argues that to interpret § 1064(3) as invalidating laches as a matter of law would be to negate § 1069 of the Lanham Act (Dkt. #105; Dkt. #124). Moreover, Gibson proffers that the disputed language— at any time—found within § 1064 is in reference to statute of limitations and not in reference to equitable defenses (Dkt. #105; Dkt. #124). On February 6, 2020, Armadillo filed its Reply in Support of Its Motion to Strike Gibson’s Affirmative Defenses of Laches and Estoppel (Dkt. #120). On February 14, 2020, Concordia filed its Reply in Support of Its Motion to Strike Gibson’s Affirmative Defenses of Laches and Estoppel (Dkt. #126). Defendants argue that the cases cited by Gibson do not comport with the current fact

pattern, as none of them are applying laches or estoppel to genericness claims (Dkt. #120) (Dkt. #126). On February 12, 2020, Gibson filed its Sur-Reply in Opposition to Armadillo’s Motion to Strike Gibson’s Affirmative Defenses of Laches and Estoppel (Dkt. #125). On February 21, 2020, Gibson filed its Sur-Reply in Opposition to Concordia’s Motion to Strike Gibson’s Affirmative Defenses of Laches and Estoppel (Dkt. #127). LEGAL STANDARD Rule 12 of the Federal Rules of Civil Procedure provides “the court may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.” FED. R. CIV. P. 12(f). The Court has the authority to act on its own or pursuant to a “motion made by a party either before responding to the pleading or, if a response is not allowed, within 21 days after being served with the pleading. FED. R. CIV. P. 12(f)(1)–(2). The Fifth Circuit has stated that motions to strike are generally disfavored. See Kaiser Aluminum & Chem. Sales, Inc. v. Avondale Shipyards, 677 F.2d 1045, 1058 (5th Cir. 1982). They are viewed with disfavor and infrequently

granted, both because striking portions of pleadings is a drastic remedy and because it is often sought by a movant simply as a dilatory tactic. See Bailey Lumber & Supply Co. v. Georgia- Pacific Corp., 2010 WL 1141133, at *4–5 (S.D. Miss. Mar. 19, 2010) (citing FDIC v. Niblo, 821 F. Supp. 441 (N.D. Tex. 1993)). Although motions to strike are disfavored and infrequently granted, striking certain allegations can be appropriate when they have no possible relation to the controversy and may cause prejudice to one of the parties. Jefferson Par. Consol. Garbage Dist. No. 1 v. Waste Mgmt. of La., 2010 WL 1731204, at *5 (E.D. La. Apr. 28, 2010) (citing Boreri v. Fiat S.p.A., 763 F.2d 17, 23 (1st Cir. 1985); Berry v. Lee, 428 F. Supp. 2d 546, 563 (N.D. Tex. 2006); McInerney v. Moyer Lumber & Hardware, Inc., 244 F. Supp. 2d 393, 401 (E.D. Pa. 2002)).

The Court possesses considerable discretion in ruling on a motion to strike. Bailey, 2010 WL 1141133, at *4–5 (citing Niblo, 821 F. Supp. at 449). ANALYSIS The Court is presented with Armadillo’s Motion to Strike Gibson’s Affirmative Defenses of Laches and Estoppel (Dkt. #96) and Concordia’s Motion to Strike Gibson’s Affirmative Defenses of Laches and Estoppel (Dkt. #112). According to Defendants, the language “at any time” found in § 1064(3) of the Lanham Act expressly prohibits any equitable defense being used in a cancellation petition based on a mark’s genericness. Gibson counters that this language was not meant as a barrier to equitable defenses but instead the language demonstrates that § 1064(3), unlike the first two subsections, is not subject to a statute of limitations.

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Gibson, Inc. v. Armadillo Distribution Enterprises, Inc., (E.D. Tex. 2020).

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