Las Vegas Skydiving Adventures LLC v. Groupon, Inc.

CourtDistrict Court, D. Nevada
DecidedFebruary 28, 2022
Docket2:18-cv-02342
StatusUnknown

This text of Las Vegas Skydiving Adventures LLC v. Groupon, Inc. (Las Vegas Skydiving Adventures LLC v. Groupon, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Las Vegas Skydiving Adventures LLC v. Groupon, Inc., (D. Nev. 2022).

Opinion

1 UNITED STATES DISTRICT COURT 2 DISTRICT OF NEVADA 3 LAS VEGAS SKYDIVING ADVENTURES Case No.: 2:18-cv-02342-APG-VCF LLC, 4 Order (1) Granting Defendant’s Motion Plaintiff, for Summary Judgment; (2) Denying 5 Plaintiff’s Motion for Leave to File Late v. Objection; (3) Denying Plaintiff’s First 6 Motion for Reconsideration; and GROUPON, INC., (4) Denying Plaintiff’s Second Motion for 7 Reconsideration Defendant. 8 [ECF Nos. 91, 104, 105, 109]

9 Plaintiff Las Vegas Skydiving Adventures LLC (LVSA) sued Groupon, Inc. (Groupon) 10 alleging antitrust violations, trademark infringement, and Nevada common law claims for 11 misappropriation of commercial property and unjust enrichment. I previously granted in part 12 Groupon’s motion to dismiss, dismissing with prejudice LVSA’s two antitrust claims. Groupon 13 now moves for summary judgment on the three remaining claims. LVSA moves for 14 reconsideration of my dismissal of its antitrust claims. LVSA also moves for reconsideration of 15 Magistrate Judge Ferenbach’s order that denied (1) its two motions to compel competent Federal 16 Rule of Civil Procedure (FRCP) 30(b)(6) deponents and (2) its renewed motion for spoliation 17 sanctions.1 Lastly, LVSA moves for leave to file a late objection to Magistrate Judge 18 Ferenbach’s order denying its motion to strike a rebuttal expert report. 19 I grant Groupon’s motion for summary judgment. Assuming that LVSA has a protectible 20 ownership interest in the Fyrosity mark and that Groupon used the mark, LVSA’s trademark 21 infringement claim fails as a matter of law because Groupon’s use does not give rise to a 22

23 1 I treat LVSA’s motion for Magistrate Judge Ferenbach to reconsider his ruling denying the three underlying motions as an objection to Judge Ferenbach’s ruling. 1 likelihood of consumer confusion. And LVSA presents insufficient evidence of a substantial 2 investment in the development of its property and of a benefit conferred on Groupon such that a 3 reasonable jury could find common law appropriation or unjust enrichment, respectively. I also 4 deny LVSA’s motion for reconsideration of my order dismissing its antitrust claims. LVSA’s

5 new evidence does not alter my previous ruling that the parties do not compete in the same 6 market and their services are not reasonably interchangeable. 7 My rulings on Groupon’s motion for summary judgment and LVSA’s motion for 8 reconsideration of dismissal effectively moot the remaining discovery-related motions because 9 no claims remain and these pending motions involve only the metadata dispute and do not relate 10 to consumer confusion, investment in the mark, or benefits conferred. But even if claims 11 remained, these discovery-related motions fail on the merits because none of Magistrate Judge 12 Ferenbach’s rulings was clearly erroneous or contrary to law. I therefore deny LVSA’s motion 13 for leave to file a late objection to Judge Ferenbach’s ruling denying LVSA’s motion to strike a 14 rebuttal expert report, and I deny LVSA’s motion for reconsideration of Judge Ferenbach’s

15 rulings denying two motions to compel and a renewed motion for spoliation sanctions. 16 I. BACKGROUND 17 LVSA “offers services to individuals who wish to have the experience of jumping out of 18 an airplane while tethered to an experienced parachutist.” ECF No. 97-1 at 3. It offers these 19 skydiving services in and around Las Vegas, Nevada under the service mark “FYROSITY.” Id.; 20 ECF No. 1-1 at 2-3. Groupon provides discount vouchers for use with affiliated businesses, 21 including skydiving services. ECF Nos. 91 at 9; 97 at 2. LVSA is not affiliated with Groupon. 22 ECF No. 91-8 at 5. 23 1 In 2018, the Mesquite Airport Facebook profile shared a video originally posted on 2 LVSA’s Skydive Fyrosity Facebook profile. ECF Nos. 91-5 at 2; 97-1 at 3. The video 3 congratulated one of LVSA’s customers on her first tandem skydive with the company. Id. The 4 Mesquite Airport profile captioned the share: “Closer to Vegas. Don’t know if it’s on Groupon,”

5 tagging Groupon’s Facebook profile in the process. Id. Groupon then commented on the shared 6 post, stating in relevant part: “Here is a link to all the skydiving Groupon deals from Vegas . . . . 7 Hope you’ll find something for you!” Id. at 3. Groupon’s comment included a hyperlink to a 8 page on Groupon’s website that generates search results for the search term “skydive Fyrosity.” 9 Id.; ECF No. 91-7 at 2. Groupon’s results page displays the search term “skydive Fyrosity” 10 (1) in the search bar at the top of the page; (2) on the left side of the screen where a consumer 11 can filter and refine their search and view “breadcrumbs” tracking current search criteria; and 12 (3) below an advertisement banner but above the search results in a header that reads, “results for 13 ‘skydive Fyrosity.’” ECF No. 91-7 at 2. Below the header, some text reads: “No matching deals. 14 You may also like . . . .” Id. Below that message, the page displays skydiving offers from other

15 service providers in the area. Id. Shortly after Groupon commented on the shared Facebook 16 video, LVSA’s Skydive Fyrosity profile also commented, stating in relevant part, “Skydive 17 Fyrosity is not on Groupon and will never be. . . . The link [s]hared by Groupon is 18 MISLEADING! When you click you will not see Skydive Fyrosity deals!” ECF No. 91-5 at 3. 19 LVSA sued Groupon for antitrust violations, trademark infringement, and Nevada 20 common law claims for misappropriation of commercial property and unjust enrichment. ECF 21 No. 1. I dismissed LVSA’s antitrust claims. ECF No. 30. LVSA bases its remaining claims on 22 Groupon’s Facebook comment containing the hyperlink and on the linked “skydive Fyrosity” 23 results page on Groupon’s website. ECF No. 91-8. 1 After discovery closed, LVSA moved to strike Groupon’s rebuttal expert report, twice 2 moved to compel competent FRCP 30(b)(6) deponents, and filed a renewed motion for spoliation 3 sanctions. ECF Nos. 78; 84; 87; 96. Magistrate Judge Ferenbach denied all four motions. ECF 4 No. 103.

5 Groupon now moves for summary judgment on LVSA’s remaining claims of trademark 6 infringement, misappropriation, and unjust enrichment. ECF No. 91. LVSA moves (1) for 7 reconsideration of my order dismissing its antitrust claims under the Sherman Act; (2) for leave 8 to file a late objection to Judge Ferenbach’s order denying its motion to strike; and (3) for 9 reconsideration of Judge Ferenbach’s order denying its motions to compel and its renewed 10 motion for spoliation sanctions. ECF Nos. 109; 104; 105. 11 II. ANALYSIS 12 A. Summary Judgment 13 Groupon argues in relevant part that LVSA’s claims for trademark infringement, 14 appropriation of commercial property, and unjust enrichment fail as a matter of law because

15 LVSA did not provide evidence of consumer confusion, substantial investment in developing its 16 mark, or conferral of a benefit on Groupon. LVSA responds generally that there are disputed 17 facts and evidence of consumer confusion, and that Groupon failed to produce a competent 18 FRCP 30(b)(6) witness such that more material facts could be disputed. Beyond its general 19 assertion of disputed facts, LVSA does not rebut Groupon’s arguments regarding the two 20 common law claims. 21 Summary judgment is proper where a movant shows that “there is no genuine dispute as 22 to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 23 56(a). A fact is material if it “might affect the outcome of the suit under the governing law.” 1 Anderson v.

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Las Vegas Skydiving Adventures LLC v. Groupon, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/las-vegas-skydiving-adventures-llc-v-groupon-inc-nvd-2022.