Jascar Ents., L.L.C. v. Body by Jake Ents., L.L.C.

2015 Ohio 3281
Ohio Court of Appeals·Decided August 17, 2015·No. 14AP0006·Published·Cited by 2 cases

Opinion

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF WAYNE )

JASCAR ENTERPRISES, LLC C.A. No. 14AP0006 Appellant

v. APPEAL FROM JUDGMENT ENTERED IN THE

BODY BY JAKE ENTERPRISES, LLC, et al. COURT OF COMMON PLEAS COUNTY OF WAYNE, OHIO

Appellees CASE No. 10-CV-0790

DECISION AND JOURNAL ENTRY Dated: August 17, 2015

HENSAL, Presiding Judge.

{¶1} Jascar Enterprises, LLC appeals a judgment of the Wayne County Court of Common Pleas that granted summary judgment to Body by Jake Enterprises, LLC, Body by Jake Global, LLC, BodybyJake.com, Inc., Body by Jake Enterprises, Inc., and Body by Jake, Inc. (collectively “Body by Jake”) on its defamation, deceptive trade practices, false advertising, intentional interference with contract, negligence, and interference with a prospective economic advantage claims. For the following reasons, this Court affirms in part and reverses in part.

I.

{¶2} Jascar is a single-member limited liability company operated by Jason Carrick. It resells goods that it buys in lots from a wholesale distributor, GENCO, which obtains the items from several retailers, including Sears. The items are a mix of overstocks, customer returns, open boxes, and floor models. According to Mr. Carrick, although he can specify the categories of goods that he buys from GENCO, he does not know what items a lot will contain until he

receives it. The lots sometime contain exercise equipment, including Body by Jake’s Tower 200 Full-Body Exercise Gym. Jascar sells some of the items it acquires from GENCO through a retail store and others online through eBay.

{¶3} Body by Jake designs and manufacturers exercise equipment, which it sells through its authorized retailers, Sears and Kmart. Concerned about counterfeit products and other violations of its intellectual property rights, Darcy Dominguez, Body by Jake’s former vice-president of direct response, began monitoring eBay and other websites on a daily basis. She also registered Body by Jake in eBay’s verified rights owner (“VeRO”) program, which allows manufacturers to report suspected intellectual property right infringements to eBay through a “Notice of Claimed Infringement.”

{¶4} According to Ms. Dominguez, in March 2010, she noticed that Jascar, using the name Wesaveyou$, had created a few listings on eBay for “brand new” Tower 200 models. Knowing that none of Body by Jake’s authorized retailers was allowed to sell Tower 200 models online, she reported the listings to eBay through the VeRO program. In her infringement notice, Ms. Dominguez declared that she had a good faith belief that Jascar had unlawfully copied Body by Jake’s copyrighted text and images. After reviewing the listings, however, eBay responded that it did not think that she had reported an intellectual property infringement.

{¶5} Dissatisfied with eBay’s response, Ms. Dominguez replied to the message eBay sent her, claiming that Jascar had “scammed the system[.]” According to Ms. Dominguez, while Jascar had previously listed “dozens” of items as new, after she submitted her infringement notice, it had changed its description of the items to used. She assumed that eBay had gotten in touch with Jascar, which prompted Jascar to alter its listings. She accused Jascar of scamming the system because “[c]learly no one would have this many used Tower 200 units.”

{¶6} eBay replied to Ms. Dominguez’s email, explaining that it would not disclose actions it had taken regarding a user and that, if she thought a listing infringed Body by Jake’s intellectual property rights, she should submit a Notice of Claimed Infringement. eBay also explained how she could check a seller’s feedback profile. In response, Ms. Dominguez wrote:

Their feedback profile has nothing to do with the illegal activities they are committing against our company.

Of course the feedback will be positive from the person buying it, they are buying counterfeit product at a cheaper price so of course the buyer will feel good about the transaction.

This whole process needs a severe overhaul, I know our brand is only one of thousands of brands who are battling this same issue.

The record does not indicate whether eBay responded to Ms. Dominguez’s email. A week later, however, eBay notified Jascar that it was removing four of its listings because they had been reported as “fake or counterfeit through eBay’s VeRO Program.” eBay gave Jascar Ms. Dominguez’s contact information and encouraged it to contact her if it had any questions. eBay also informed anyone who had bid-on or won the items that the listings had been cancelled.

{¶7} After receiving eBay’s removal notice, Mr. Carrick wrote Ms. Dominguez, claiming that the items Jascar had attempted to sell were not counterfeit and that it had purchased them from Sears. When Ms. Dominguez requested proof, Mr. Carrick sent her a heavily redacted purchase agreement, which indicated that the supplier of the items was “Sears National Accounting Center.” Mr. Carrick did not disclose Jascar’s relationship with GENCO to Ms. Dominguez because he believed that he was prohibited from revealing it under a confidentiality agreement. Ms. Dominguez reviewed the purchase agreement but found it inadequate. Not only was it heavily redacted, it was from March 25, 2010, which was two weeks after Jascar had listed the items on eBay. She explained in an email to Mr. Carrick that she had contacted Sears, and

that it had no record of selling items to Jascar. When Body by Jake refused to retract its complaint, eBay sanctioned Jascar by removing Jascar from its platinum power seller program for one year. Jascar subsequently sued Body by Jake for defamation, deceptive trade practices, false advertising, intentional interference with contract, negligence, and interference with a prospective economic advantage, alleging that its eBay sales had declined as a result of Body by Jake’s statements.

{¶8} Body by Jake filed a counterclaim against Jascar, which it later dismissed.

Following discovery, both sides moved for summary judgment on Jascar’s claims. The trial court granted summary judgment to Body by Jake. It determined that Jascar’s defamation claim failed because the statements Ms. Dominguez made in her March 12, 2010, infringement notice were privileged and Jascar had not presented any evidence that she made them with actual malice. It determined that Jascar’s deceptive trade practices claim failed because Ms. Dominguez’s statements were protected opinions. It determined that Jascar’s false advertising claim failed because Ms. Dominguez did not make any of her statements to eBay customers. Finally, it determined that Jascar’s negligence claim failed because Ms. Dominguez did not owe Jascar a duty. Jascar has appealed the trial court’s ruling, assigning five errors. This Court will address some of the assignments of error together for ease of consideration.

II.

ASSIGNMENT OF ERROR I

THE TRIAL COURT ERRONEOUSLY GRANTED APPELLEE’S MOTION FOR SUMMARY JUDGMENT BECAUSE IT FAILED TO RENDER JUDGMENT ON ALL OF THE CLAIMS IN THE FIRST AMENDED COMPLAINT.

{¶9} Jascar argues that the trial court erred because it rendered judgment on only four of Jascar’s six claims. Specifically, Jascar argues that the court failed to rule on its intentional interference with a contract or its interference with a prospective economic advantage claims.

{¶10} Although the trial court only included its reason for denying four of Jascar’s claims in its judgment entry, it disposed of all of Jascar’s claims in the entry, writing that Body by Jake is “entitled to summary judgment on all of [Jascar’s] claims.” The trial court was not required to explain its reason for denying each claim. Civ.R. 52 (“Findings of fact and conclusions of law * * * are unnecessary upon all other motions including those pursuant to * * * [Rule] 56.”); Copeland v. Rosario, 9th Dist. Summit No. 18452, 1998 WL 46768, *3 (Jan. 28, 1998). Accordingly, Jascar’s first assignment of error is overruled.

ASSIGNMENT OF ERROR III

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Jascar Ents., L.L.C. v. Body by Jake Ents., L.L.C., 2015 Ohio 3281 (Ohio Ct. App. 2015).

2015 Ohio 3281 (Jascar Ents., L.L.C. v. Body by Jake Ents., L.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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