John Wiley & Sons, Inc. v. Book Dog Books, LLC

126 F. Supp. 3d 413, 2015 U.S. Dist. LEXIS 118368, 2015 WL 5172842
CourtDistrict Court, S.D. New York
DecidedSeptember 4, 2015
DocketNo. 13 Civ. 816(WHP)(GWG)
StatusPublished
Cited by26 cases

This text of 126 F. Supp. 3d 413 (John Wiley & Sons, Inc. v. Book Dog Books, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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John Wiley & Sons, Inc. v. Book Dog Books, LLC, 126 F. Supp. 3d 413, 2015 U.S. Dist. LEXIS 118368, 2015 WL 5172842 (S.D.N.Y. 2015).

Opinion

OPINION AND ORDER

GABRIEL W. GORENSTEIN, United States Magistrate Judge.

John Wiley & Sons, Inc., Cengage Learning, Inc. (“Cengage”), and Pearson Education, Inc. (“Pearson”) brought this suit against Book Dog Books, LLC (“BDB”) and Philip Smyres alleging copyright infringement, trademark infringement, and other claims relating to defendants’ purported distribution of counterfeit textbooks. Plaintiffs have filed a motion to disqualify Neil B. Mooney as counsel for [416]*416defendants.1 For the reasons stated below, plaintiffs’ motion is denied.

I. BACKGROUND

We provide a limited chronology of the history of the parties’ disputes, with an emphasis on describing, instances where Mooney has given testimony or submitted statements to a court.

Plaintiffs are publishing companies that provide a wide range of educational products for students and professionals. See Second Amended Complaint, filed May 27, 2015 (Docket # 263) (“SAC”), ¶ 1. BDB is a company that buys and sells textbooks, including some textbooks published by plaintiffs. Id. ¶ 2. Smyres is the owner of BDB. Id. ¶¶ 14, 26; Answer to Second Amended Complaint, filed June 10, 2015 (Docket # 264), ¶ 14.

In October 2007, plaintiffs filed a lawsuit against Smyres and others for copyright infringement. Id. ¶¶ 3, 30; see Complaint, filed Oct. 2, 2007 (Docket # 1 in Cengage Learning Inc. et al. v. Buckeye Books et al., No. 07 Civ. 8540 (S.D.N.Y.) (the “2007 Action”)). The parties settled the 2007 Action through written agreement. See Settlement and Mutual Releases, dated July 11, 2008 (annexed as Ex. 1 to Declaration of Julie C. Chen, filed Jan. 26, 2015 (Docket # 204)) (“Settlement Agreement”), ¶ 4.

A. Mooney’s Testimony in the Ohio Action

On December 18, 2012, the defendants in this case filed a lawsuit against the plaintiffs in this case in the Southern District of Ohio.2 See Complaint, filed Dec. 18, 2012 (Docket # 1 in Book Dog Books, LLC v. Cengage Learning, Inc. et al., No. 12 Civ. 1165 (S.D.Ohio) (the “Ohio Action”)). Defendants also sought a temporary restraining order (“TRO”) that would require plaintiffs to “allow [defendants] to order/purchase publications from [plaintiffs] under the status quo of how that supply relationship has been operating up until July 2012.” Plaintiffs’ Motion for a Temporary Restraining Order, filed Dec. 18, 2012 (Docket # 2 in the Ohio Action), at 1. The court held an evidentiary hearing on December 28, 2012. See Minute Entry for Proceedings Held Before Judge James L. Graham, filed Dec. 28, 2012 (Docket # 18 in the Ohio Action); TRO/Preliminary Injunction Hearing, filed Feb. 6, 2013 (Docket # 19 in the Ohio Action) (“TRO Hr’g Tr.”); TRO/Preliminary Injunction Hearing, dated Dec. 28, 2012 (annexed in part as Ex. 5 to Oppenheim Decl.) (“TRO Hr’g Excerpts”). Mooney appeared as the sole witness for defendants at the hearing. See TRO Hr’g Tr. at 2. In the excerpts of the hearing supplied by plaintiffs, Mooney testified about the defendants’ “conversa[417]*417tions” in response to a letter from plaintiffs regarding the defendants’ alleged sale of counterfeit books, TRO Hr’g Excerpts at 35-36; the content of various provisions of the 2008 Settlement Agreement, id. at 53-56; and an email — apparently from Mooney to plaintiffs — that was sent in response to a August 30, 2011 letter from plaintiffs and that discussed “what books [defendants] supplied to whom and where they came from,” whether the books were “checked against 2008 suppliers,” and the defendants’ conclusion that none of the allegedly counterfeit titles came from parties who had supplied the books at issue in the 2007 Action, id. at 73-74. Following the hearing, the court denied defendants’ request for a TRO. See Opinion and Order, filed Jan. 4, 2013 (Docket # 15 in the Ohio Action), at 1.

B. Mooney’s Testimony Regarding the Disclosure Required by the Settlement Agreement

Plaintiffs filed the instant action on February 4, 2013. See Complaint, filed Feb. 4, 2013 (Docket # 1). In their second amended complaint, plaintiffs allege claims for copyright infringement, SAC ¶¶ 59-69; trademark infringement, id. ¶¶ 70-76; trademark counterfeiting, id. ¶¶ 77-80; illegal importation of goods bearing infringing trademarks or names, id. ¶¶ 81-84; trademark dilution, id. ¶¶ 85-89; unfair competition and false designation of origin, id. ¶¶ 90-96; and breach of contract, id. ¶¶ 97-102. Pearson also alleges a claim for conspiracy to commit fraud. Id. ¶¶ 103-09.

One of the issues that has arisen in this litigation relates to a provision of the Settlement Agreement that required defendants to disclose to plaintiffs the foreign and domestic sources of any pirated copies of plaintiffs’' textbooks, including “the name and location of the entity from whom such books were purchased, the types of books purchased, and the year(s) that [defendants] purchased such books.” Settlement Agreement ¶ 10. Pursuant to this provision, defendants disclosed that a company in Thailand named Best Books World was the supplier of “most if not all” of the counterfeit books purchased by defendants. See Email, dated Sept. 10, 2008 (annexed as Ex. 2 to Plaintiffs’ Memorandum in Support of Their Motion to Compel Production of Documents and Testimony, filed Mar. 26, 2014 (Docket # 109) (“Docket # 109”)) (the “Disclosure”), at BP-SMY-025504; Opinion and Order, filed May 7, 2014 (Docket # 130) (“May 7 Order”), at 2.

At Smyres’s deposition on November 20, 2013, plaintiffs’ counsel showed Smyres a copy of the Disclosure. See Deposition of Philip Smyres, dated Nov. 20, 2013 (annexed in part as Ex. 5 to Docket # 109) (“Smyres Dep.”), at 195-96. When asked if he had ever seen this document, Smyres responded, “Maybe years ago. I don’t know.” Id. at 196. Although Smyres did not remember the Disclosure, he did not deny that he “may have prepared” it. Id. However, Smyres testified that he had “always ... thought it was communicated that Wirat Education was the source of most of the counterfeits].” Id. Later, he testified that he was “100 percent sure” he communicated to Mooney “that Wirat Education was the source of almost all of the counterfeits],” id. at 198, and that he thought he had directed Mooney to disclose that Wirat Education, not Best Books World, was the major source, see id. at 202.

The Court then granted plaintiffs’ motion to take a deposition of Mooney limited to the issue of his communications with Smyres on this topic. See May 7 Order at 6-10. The deposition took place on May 30, 2014. See Deposition of Neil Mooney, [418]*418dated May 30, 2014 (annexed in part as Ex. 4 to Oppenheim Decl.) (“Mooney Dep.”). In the limited pages provided with plaintiffs’ motion papers, the Court is able to discern that Mooney testified that he negotiated and drafted the Settlement Agreement, see id. at 35, and that he understood paragraph 10 of the agreement to obligate defendants “[t]o provide the sources of’ counterfeit books, id. at 54.

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126 F. Supp. 3d 413, 2015 U.S. Dist. LEXIS 118368, 2015 WL 5172842, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-wiley-sons-inc-v-book-dog-books-llc-nysd-2015.