John Labatt Ltd. v. Molson Breweries

853 F. Supp. 965, 1994 U.S. Dist. LEXIS 6235, 1994 WL 184403
CourtDistrict Court, E.D. Michigan
DecidedApril 28, 1994
Docket93-75004
StatusPublished
Cited by17 cases

This text of 853 F. Supp. 965 (John Labatt Ltd. v. Molson Breweries) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Labatt Ltd. v. Molson Breweries, 853 F. Supp. 965, 1994 U.S. Dist. LEXIS 6235, 1994 WL 184403 (E.D. Mich. 1994).

Opinion

MEMORANDUM AND ORDER DENYING DEFENDANTS’ MOTION TO DISMISS

COHN, District Judge.

I.

This is a trademark and unfair competition case. 15 U.S.C. §§ 1051 et seq. and pendent state claims. Plaintiffs (collectively, “La-batt”), bring this action against defendants (collectively, “Miller”) * alleging false designation of origin, false advertising, and unfair competition in violation of the Lanham Act, unfair trade practices under the Michigan Consumer Protection Act, common law unfair competition, tortious interference with prospective business advantage, and injurious falsehood. Now before the Court is Miller’s motion under Fed.R.Civ.Proc. 12(b)(6) to dismiss the claim based on the Michigan Consumer Protection Act. 1 For the reasons that follow, the motion will be denied.

II.

A.

Labatt and Miller are both in the business of importing, marketing and selling beer. Labatt and Molson are both Canadian corporations, with American subsidiaries or partners. Labatt imports and sells its beer in the United States. Miller sells domestic beer and imports and sells Molson products through its subsidiaries.

B.

For the purposes of this motion, the following factual allegations of Labatt are taken as true.

In 1992, Labatt invented a unique process to make what it called ICE BEER. It identified the process as ICE BREWING and the beer which the process makes as ICE BREWED and ICE BEER. Labatt has filed an application in the United States for a patent on the process. Labatt has also applied to register in the United States the marks: LABATT ICE BEER, ICE BEER, ICE, ICE BREWING, and ICE BREWED. No one ever used the marks ICE BEER, ICE BREWED, or ICE BREWING, or developed the process by which ICE BEER is made before Labatt.

Molson and Miller now market their own “ice beers,” using in their advertising the terms ICE BEER and ICE BREWED. Molson identifies its products MOLSON CANADIAN ICE DRAFT, BLACK ICE, and CARLING ICE BEER in Canada, and MOLSON ICE in the United States, as ICE BREWED. Miller has introduced a beer called ICEHOUSE which is claimed in advertisements, labels, and packaging to be ICE BREWED. The beers sold under the Miller and Molson names are not made with the Labatt process.

*967 III.

Labatt makes the following claims in its complaint:

Count II 2 : False Designation in Violation of the Lanham Act
Count III: False Advertising in Violation of the Lanham Act
Count IV: Unfair Competition in Violation of the Lanham Act and the Paris Convention
Count V: Unfair Trade Practices under Michigan Consumer Protection Act
Count VI: Common Law Unfair Competition
Count VII: Tortious Interference with Prospective Business Advantage
Count VII 3 : Injurious Falsehood.

IV.

Miller has moved under Fed.R.Civ.P. 12(b)(6) for dismissal of Count V for failure to state a claim upon which relief can be granted. Miller says the claim, based on the Michigan Consumer Protection Act (MCPA), Public Act 331, 1976, p. 1164 (amended by Public Act 91, 1984, p. 188) (codified at MSA §§ 19.418(1)-19.418(22)), 4 must be dismissed because Labatt as a competitor lacks standing to bring an action under the MCPA. The MCPA, Miller says, is a consumer protection statute, under which only consumers, 5 as opposed to corporate competitors, have standing to sue. Because Labatt is not suing as a consumer of Miller’s products, Miller says, Labatt has no standing to pursue an action under the MCPA.

Labatt responds that it does have standing under the plain language of the MCPA. The MCPA, Labatt says, renders unlawful “unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce,” MSA § 19.418(3), and provides that “a person may bring an action to ... [ejnjoin ... a person who is engaging or about to engage in” an unlawful method, act, or practice, and may recover actual or statutory damages and reasonable attorneys’ fees. MSA §§ 19.418(H)(1)(b), 19.418(H)(2) (emphasis added). “Person” is defined as “a natural person, corporation, trust, partnership, incorporated or unincorporated association, or other legal entity.” MSA § 19.-418(2)(c). Labatt says that since it falls under the statutory definition of “person,” and because the conduct of which it complains is of the sort contemplated by the statute, 6 it has standing to sue under the MCPA. 7

1.

Miller’s argument that Labatt does not have standing to sue under the MCPA is based primarily on Wynn Oil Co. v. American Way Service Corp., 736 F.Supp. 746 (E.D.Mich.1990), aff'd in part, rev’d in part on other grounds, 943 F.2d 595 (6th Cir.1991). In Wynn, the district court specifically found that a business competitor did not have standing to sue under the MCPA:

*968 Defendant counters that Plaintiff has no cause of action under the Act because Plaintiff is not a consumer, but a business. Defendant argues that the Act does not create a private right of action for a business entity in the marketplace seeking to advance its own competitive interests. Plaintiff cites no Michigan case which found a cause of action under circumstances similar to those in the present case, and the Court is unable to find any after careful research. Indeed, one of the few Michigan cases interpreting the Act states:
We are satisfied that a clear legislative intent in enacting the Michigan Consumer Protection Act was to protect consumers in their purchases of goods, which are primarily used for personal, family, or household purposes.

Wynn, 736 F.Supp. at 757 (quoting Noggles v. Battle Creek Wrecking, Inc., 153 Mich. App. 368, 367, 395 N.W.2d 322 (1986). Wynn in turn relied primarily on the opinion of the Court of Appeals of Michigan in Noggles, as well as a number of cases from other states with statutes similar to the MCPA. The Court is not persuaded by Wynn

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Bluebook (online)
853 F. Supp. 965, 1994 U.S. Dist. LEXIS 6235, 1994 WL 184403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-labatt-ltd-v-molson-breweries-mied-1994.