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

CourtCourt of Appeals of Texas
DecidedApril 30, 2020
Docket05-19-00245-CV
StatusPublished

This text of 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) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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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).

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. –2– 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 –3– 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 –4– 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.

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King Aerospace, Inc. and King Aerospace Commercial Corporation, Inc. v. Randy King D/B/A King Aviation Dallas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-aerospace-inc-and-king-aerospace-commercial-corporation-inc-v-texapp-2020.