Jimdi, Inc. v. TWIN BAY DOCKS AND PRODUCTS, INC.

501 F. Supp. 2d 993, 2007 U.S. Dist. LEXIS 33578, 2007 WL 1343664
CourtDistrict Court, W.D. Michigan
DecidedMay 8, 2007
Docket1:07-cv-209
StatusPublished
Cited by2 cases

This text of 501 F. Supp. 2d 993 (Jimdi, Inc. v. TWIN BAY DOCKS AND PRODUCTS, INC.) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jimdi, Inc. v. TWIN BAY DOCKS AND PRODUCTS, INC., 501 F. Supp. 2d 993, 2007 U.S. Dist. LEXIS 33578, 2007 WL 1343664 (W.D. Mich. 2007).

Opinion

OPINION

QUIST, District Judge.

Plaintiff, Jimdi, Inc. (“Jimdi”), filed its complaint in this case on March 5, 2007, alleging that Defendants, Twin Bay Docks and Products, Inc. (“Twin Bay”) and Robert Serschen 1 (“Serschen”) are using its federally-registered trademark in violation of the Lanham Act, 15 U.S.C. § 1051, et seq., and the common law. Jimdi also alleged various other state law claims for violation of the Michigan Consumer Protection Act, M.C.L.A. § 445.901 et seq., breach of contract, tortious interference with contractual relations, business defamation, unjust enrichment, and conversion. Jimdi moved for a temporary restraining order and a preliminary injunction. On March 7, 2007, the Court entered an order denying the motion for a temporary restraining order and setting a hearing on the motion for preliminary injunction. The Court held a hearing on the motion for preliminary injunction on March 26, 2007. At the conclusion of the hearing the Court took the matter under advisement and granted Jimdi the opportunity to file a reply brief, which it has done. For the reasons set forth below, the Court will deny the motion.

I. Facts

Jimdi is a Michigan corporation engaged in the business of designing, manufacturing, and selling injection-molded modular deck flooring panels for use in the animal nursery and farrowing industry. These panels contain a herringbone or chevron-shaped pattern of slots. Examples of this pattern are shown in Jimdi’s exhibits 2a-2c and 5. Jimdi has sold these panels under various names from 1989 through the present. From 1989 until 1996, Jimdi sold deck flooring panels exemplified by exhibit 2b to the public under the name “Poly‘T’ ” brand. From 1990 though the present, Jimdi has manufactured and sold deck flooring panels exemplified by exhibit 2a to distributors for resale to the public under *999 the “Sure Step” brand. From about 1999 through the present, Jimdi has manufactured and sold panels exemplified in exhibit 5 to resellers for sale to the public throughout the country. On March 24, 1998, the United States Patent and Trademark Office granted Jimdi’s application for registration of its herringbone pattern for floor panels on the principal register, evidenced by registration no. 2,145,723. Since 1998, Jimdi has included the registered trademark symbol ®, its common law trademark “Sure Step”, and a notice of protection under United States Patent No. D 395,713 on all of the panels it has manufactured bearing the herringbone design.

Twin Bay has been engaged in the manufacture of various products relating to the boating industry, including dock flooring, dock components, and dock accessories, since approximately 1989. Twin Bay initially manufactured dock flooring with cedar and later added a vinyl flooring product manufactured by Thru-Flow, Inc. of Canada. When Twin Bay became dissatisfied with the dock panels that Thru-Flow produced, Serschen, Twin Bay’s president, approached Jimdi about manufacturing dock flooring for Twin Bay. Because the dock panels would be of a different length and width than other panels Jimdi manufactured, a new plastic injection-molding tool (“Tool”) was required to make the panels. The parties agreed that Jimdi would build the Tool and that Twin Bay would make a financial investment in the Tool in order to ensure Twin Bay’s commitment to ordering the product.

The remaining details regarding the manufacture and rights to use the Tool are somewhat in dispute. According to Richard Schrotenboer, Jimdi’s president, the parties agreed that Jimdi would reduce the per-piece cost of each panel that Jimdi produced for Twin Bay, so that over time, Twin Bay would fully recoup its investment in the Tool. (Schrotenboer Aff. ¶ 18.) Schrotenboer states that Jimdi did not agree that it was restricted to making dock panels using the Tool exclusively for Twin Bay and that it was never restricted in manufacturing and selling dock flooring panels with its trademarked pattern to other retailers besides Twin Bay. (Id. ¶¶ 19-20.) Schrotenboer also states that on at least two occasions prior to April 5, 2004, Serschen claimed that Serschen and/or Twin Bay owned the tool and that Jimdi always refuted these assertions until Jimdi became concerned about losing Twin Bay’s business. (Id. ¶¶ 24-25.)

Serschen’s version differs in some respects. He states that when the parties first began discussing Twin Bay’s purchase of flooring, he gave Schrotenboer a sample of Thru-Flow’s unpatented pattern to use in building the Tool because Schrotenboer told him that the herringbone pattern in Jimdi’s panels was trademarked, however, when Jimdi built the Tool, it used Jimdi’s herringbone design rather than the Thru-Flow design. (Serschen Aff. ¶¶ 11, 16.) He says that the parties reached an agreement in January 2001 whereby Jimdi would build the Tool, Twin Bay would make the monetary investment to build the Tool, and Jimdi would give Twin Bay discounted pricing on panels that Jimdi produced for Twin Bay and rebates on panels that Jimdi manufactured and sold to its other customers using the Tool. (Id. ¶¶ 12-13.) Serschen states that he told Schro-tenboer that he wanted to purchase the Tool so that Twin Bay could manufacture its own panels or could contract with another company to make them at some point in the future, and that he never agreed that Twin Bay could not use the Tool. (Id. ¶¶ 14-15.) Finally, Serschen states that after almost five years had gone by, he wanted to take possession of the Tool in order to have another manufacturer produce the dock panels but that Schrotenboer objected to Twin Bay remov *1000 ing the Tool from Jimdi’s facility. (Id. ¶¶ 17-18.)

On April 5, 2004, the parties entered into a two-page agreement captioned “Purchase Agreement Between Robert Ser-schen and Jimdi, Inc.” (the “Agreement”). The Agreement provided, among other things, that Serschen would purchase the Tool and a “Dock Cleat tool” for the amounts of $53,000 and $12,000, respectively, and that Serschen agreed to remove the name “Sure-Step” and the Patent Number from the Tool, the cost of which would be split evenly by Jimdi and Ser-schen. The Agreement also provided that Jimdi could purchase dock flooring from Serschen at $.50 over Serschen’s cost through January 1, 2005, and at the rate of $1.00 over Serschen’s cost for two. years thereafter. The Agreement is silent on the issue of Jimdi’s trademark rights. It is also silent on the issue of possession of the Tool, although Schrotenboer, who drafted the Agreement, states that Jimdi agreed to sell Serschen the Tool “provided that the Tool remained in Jimdi’s possession and that Jimdi produce private label deck flooring panels for Serschen.” (Schrotenboer Aff. ¶ 26.) Serschen, on the other hand, says that he wanted to take possession of the Tool because he desired to contract with another manufacturer to produce the dock panels and because Jimdi did not have the capability to manufacture a new product that Serschen wanted to manufacture, and he preferred to have the same manufacturer produce both products. (Serschen Aff.

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Bluebook (online)
501 F. Supp. 2d 993, 2007 U.S. Dist. LEXIS 33578, 2007 WL 1343664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jimdi-inc-v-twin-bay-docks-and-products-inc-miwd-2007.