King Aerospace, Inc. and King Aerospace Commercial Corporation, Inc. v. Randy King D/B/A King Aviation Dallas

Court of Appeals of Texas·Decided April 30, 2020·No. 05-19-00245-CV·Published

Opinion

AFFIRMED and Opinion Filed April 30, 2020

S In The

Court of Appeals

Fifth District of Texas at Dallas No. 05-19-00245-CV

KING AEROSPACE, INC. AND KING AEROSPACE COMMERCIAL CORPORATION, INC., Appellants V.

RANDY KING D/B/A KING AVIATION DALLAS, Appellee

On Appeal from the 160th Judicial District Court Dallas County, Texas

Trial Court Cause No. DC-15-12048

MEMORANDUM OPINION

Before Justices Molberg, Reichek, and Evans Opinion by Justice Reichek In this suit for trademark infringement, King Aerospace, Inc. and King

Aerospace Commercial Corporation (“KAC”) appeal the trial court’s take nothing judgment in favor of Randy King d/b/a King Aviation Dallas. Bringing three issues, KAC contends the trial court erred in (1) failing to file sufficiently specific findings of fact and conclusions of law, (2) concluding Randall King1 established priority of use in the King Aviation marks, and (3) concluding there was no likelihood of

1 Although the style of this case uses the name “Randy King,” appellee was consistently referred to as “Randall” throughout the trial.

confusion between the King Aviation marks and King Aerospace marks. After reviewing the record, we affirm the trial court’s judgment.

Factual Background

The following are the facts testified to at trial that are relevant to our disposition of this appeal. In a trial before the court without a jury, Randall King testified he began brokering and selling airplanes in 1975 using the name King Aviation. Randall2 stated he added the word “Dallas” to the company name sometime around 1985 to identify its location and he and his father, Sam King, advertised and sold planes using the names King Aviation and King Aviation Dallas continuously from 1975 until the present.

In 1982, Randall formed the corporation King Aircraft Sales which also operated under the name King Aviation Services. Although the name of the corporation was King Aircraft Sales, Randall stated the company used the name King Aviation Dallas in its advertising. In 1988, Randall’s father invested in the corporation and Randall gave him “full control” including all financial and management rights. Randall could not recall what ownership interest he maintained in the company, but stated he gave Sam his power of attorney and Sam paid him a commission on the aircraft that he sold. Beginning in 1992, the company began operating out of Sam’s house.

2 The parties in this case both have the last name King. Accordingly, we refer to the parties by their first names to avoid confusion.

In 1993, Randall was involved in a near fatal aircraft accident that left him unable to work, or able to work only in a diminished capacity, until approximately March 2000. Randall stated he was partially paralyzed, in pain, and had memory problems requiring cognitive remediation. During that time, Randall did not sell any aircraft, but his father continued operating the company. Phil Jordan testified he began working with Sam in 1992 and, while Randall was recovering from the accident, Jordan helped Sam “take care of business.” This included filing monthly forms identifying what planes they had bought and sold. Jordan further testified he had personally known Randall since 1988 and, since then, Randall always conducted business under the names King Aviation or King Aviation Dallas.

Mark Pledger testified he began servicing and installing electronics in aircraft in 1976 and he met Randall in the 1980s. Pledger stated he worked consistently with Randall and his father every month since they met and he continued to work consistently with Sam and Sam’s secretary after Randall’s accident. According to Pledger, Randall had used the names King Aviation and King Aviation Dallas for as long as he has known him.

In 1998, King Aircraft Sales forfeited its corporate status for failure to pay its franchise tax. One year later, while Randall was still recovering from the accident, he filed for personal bankruptcy. When asked at trial in this case why he did not list King Aircraft Sales as an asset in his bankruptcy filing, Randall stated it was because he was not actively involved with the company at that time. Randall further stated

that, after consulting with his attorney, they determined Randall did not meet the criteria for having an interest in the company that would require him to report it as an asset. When asked why he did not list the King Aviation trademarks as an asset, Randall responded that, although the marks had significant value to him, he did not feel they had any value separate from him and his affiliation with the company. Randall was discharged from bankruptcy in March 2000.

In August 2002, Randall filed articles of incorporation for King Aviation Dallas. Around this time, Randall also registered the internet domain name kingaviationdallas.com which he still maintains. The company’s corporate status was forfeited in 2004 based on a failure to pay taxes.

In 2006, King Aviation Dallas moved out of Sam’s house and into an office by the airport in Addison, Texas. The new office shared a parking lot with one of the offices of KAC. King Aviation Dallas and KAC operated offices across from each other for approximately seven years. In 2013, Sam passed away and Randall began operating the company out of his apartment.

KAC consists of two companies formed by Jerry King; the first created in 1993 and the second in 2004. KAC does not sell airplanes, but instead performs heavy maintenance, painting, and refurbishment on aircraft. Jerry stated he became aware of Randall and his business in the 1980s, before he started KAC.

Randall testified that, during the years King Aviation Dallas and KAC shared a parking lot, he may have received packages meant for KAC on occasions, and one

person came into his office asking if his office was KAC’s corporate offices, but he never experienced any customer confusion between the two companies. Jerry stated that a waiter once asked him if he worked with Randall because he was wearing a shirt that had a KAC logo on it. In addition, Jerry’s son experienced a problem when a representative of an airplane sales organization told his son not to speak with him because he thought Jerry’s son was related to Randall.

In January 2011, Jerry had an attorney send Randall a letter demanding that Randall “cease and desist all use of the mark ‘King Aviation’ and ‘King Aviation Dallas,’ including conducting business under that name, operating a website under the name, advertising using the mark, and any other use of the marks in any manner whatsoever” by no later than January 25, 2011. The letter stated Randall’s use of the name constituted an infringement of Jerry’s “superior legal rights to use the marks and name.” Randall continued to conduct business under the names King Aviation and King Aviation Dallas.

On December 5, 2013, KAC filed for registration of the service mark King Aerospace Commercial Corporation with the United States Patent and Trademark Office stating the mark was first used in April 2004. On September 5, 2014, KAC filed for registration of the service mark King Aerospace, Inc. stating the mark was first used in January 1992. Registrations for both marks were issued in 2015.

In the summer of 2015, a constable came to Jerry’s office and attempted to serve him with papers intended for Randall. Jerry stated this occurrence prompted

him to have his lawyer send Randall a second cease and desist letter demanding he stop all use of the names King Aviation and King Aviation Dallas by September 24, 2015. When Randall did not do so, KAC brought this suit.

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King Aerospace, Inc. and King Aerospace Commercial Corporation, Inc. v. Randy King D/B/A King Aviation Dallas, (Tex. Ct. App. 2020).

King Aerospace, Inc. and King Aerospace Commercial Corporation, Inc. v. Randy King D/B/A King Aviation Dallas (King Aerospace, Inc. and King Aerospace Commercial Corporation, Inc. v. Randy King D/B/A King Aviation Dallas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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