Loops, LLC v. Amercare Products, Inc.

636 F. Supp. 2d 1128, 2008 WL 5000374, 2008 U.S. Dist. LEXIS 96286
CourtDistrict Court, W.D. Washington
DecidedNovember 13, 2008
DocketCase C08-1064RSM
StatusPublished
Cited by3 cases

This text of 636 F. Supp. 2d 1128 (Loops, LLC v. Amercare Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loops, LLC v. Amercare Products, Inc., 636 F. Supp. 2d 1128, 2008 WL 5000374, 2008 U.S. Dist. LEXIS 96286 (W.D. Wash. 2008).

Opinion

ORDER DENYING IN PART DEFENDANTS’ MOTION TO DISMISS, CLARIFY AND STRIKE PURSUANT TO FRCP 12

RICARDO S. MARTINEZ, District Judge.

I. INTRODUCTION

This matter comes before the Court on Defendants’ Motion to Dismiss, Strike, and Clarify pursuant to FRCP 12. (Dkt. # 27). Defendants raise a myriad of arguments, seeking dismissal of certain individuals and claims based on corporate, patent, trademark, and Washington state common law. Defendants also claim that several portions of Plaintiffs’ complaint are either impertinent or unclear. Therefore Defendants argue that these portions should be stricken or made more definitive. Plaintiffs respond that Defendants misconstrue several aspects of the law, and that many of Defendants’ arguments are premature. Notably, Plaintiffs do not oppose a specific argument brought by Defendants to strike certain words from a paragraph of Plaintiffs’ complaint.

For the reasons set forth below, the Court agrees with Plaintiffs, and DENIES IN PART Defendants’ motion.

II. DISCUSSION

A. Background

On July 11, 2008, Plaintiffs Loops, LLC and Loops Flexbrush LLC (collectively “Plaintiffs”) brought the instant lawsuit against several Defendants, including two corporations, two individual shareholders of those corporations, and several unnamed defendants which Plaintiffs indicate will be identified once ascertained. 1 Plaintiffs allege, among other things, that Defendants violated various patent and trademark laws when they sold flexible toothbrushes, that Plaintiffs claim they had a patent for, to a correctional facility in New York. The complaint further alleges that Defendants violated the Washington Consumer Protection Act as codified by RCW 19.86.020, and that Defendants engaged in fraud and unfair competition under Washington state common law. Prior to responding to Defendants’ complaint, Defendants brought the instant motion to dismiss, clarify, and strike pursuant to FRCP 12.

Significantly, the Court precluded Defendants from replying to Plaintiffs’ responsive brief via Minute Order. (Dkt. # 39). Defendants had originally filed a motion for extension of time to reply to Plaintiffs’ response, unfortunately on incorrect grounds. Defendants specifically claimed that Plaintiffs did not timely file their responsive brief, but the record clearly showed otherwise. Furthermore, the date that Defendants moved for an extension of time was the date their reply brief was due. Therefore, having failed to file a reply brief, the only relevant pleadings before the Court other than the complaint are Defendants’ motion and Plaintiffs’ responsive brief, and the declarations and exhibits in support thereof.

B. Motion to Dismiss

Under FRCP 12(b)(6), the Court must dismiss a complaint if a plaintiff can prove no set of facts to support a claim which would entitle him to relief. Van Buskirk v. Cable News Network, Inc., 284 F.3d 977, 980 (9th Cir.2002); Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir.2001). In deciding a motion to dismiss, the Court accepts as true all material alle *1132 gations in the complaint and construes them in the light most favorable to the plaintiff. See Newman v. Sathyavaglswaran, 287 F.3d 786, 788 (9th Cir.2002); Associated Gen. Contractors v. Metro. Water Dist., 159 F.3d 1178, 1181 (9th Cir.1998). However, conclusory allegations of law and unwarranted inferences are insufficient to defeat a motion to dismiss. As sociated Gen. Contractors, 159 F.3d at 1181. In short, a plaintiff must proffer “enough facts to state a claim to relief that is plausible on its face.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 1974, 167 L.Ed.2d 929 (2007). When a complaint is dismissed for failure to state a claim, “leave to amend should be granted unless the court determines that the allegation of other facts consistent with the challenged pleading could not possibly cure the deficiency.” Schreiber Distrib. Co. v. Serv-Well Furniture Co., 806 F.2d 1393, 1401 (9th Cir.1986).

Here, Defendants seek the dismissal of two named defendants, Jeffrey Hemming (“Mr. Hemming”) and Wendy Hemming (“Ms. Hemming”). Defendants also seek dismissal of: (1) any damages related to Defendants’ alleged infringement of Plaintiffs’ flexible toothbrushes from the period of February 26, 2008 through June 8, 2008; (2) Plaintiffs’ fraud claim; (3) Plaintiffs’ willful infringement, exceptional case, and attorneys’ fees claims; and (4) Plaintiffs’ trade dress infringement claim. The Court addresses each argument in turn.

1. Plaintiffs’ claims against Mr. and Ms. Hemming

Defendants indicate that Mr. and Ms. Hemming should be dismissed because they are shareholders of their corporate employers, Defendant Phoenix Trading, Inc. dba Amercare (“Amercare”) and Defendant H & L Industrial (“H & L”). Furthermore, they argue that Plaintiffs’ allegations focus on the conduct of the corporate defendants, and therefore Mr. and Ms. Hemming are shielded from any individual liability because Plaintiffs fail to allege a basis to disregard the corporate entities.

The Court recognizes that as a general rule, a corporation is considered an entity separate and distinct from its officers or shareholders. Truckweld Equipment Co., Inc. v. Olson, 26 Wash. App. 638, 644, 618 P.2d 1017 (1980). However, “the court will disregard the corporate form when its recognition would aid in perpetuating a fraud or result in a manifest injustice.” Id. Moreover, it is well-established that “[a]n officer of a corporation ... is liable for a tort committed in the course and within the scope of his official duties to the corporation the same as any other agent or servant is liable for his torts.” Johnson v. Harrigan-Peach Land Development Co., 79 Wash.2d 745, 753, 489 P.2d 923 (1971) (citations omitted). Indeed, “[i]f a corporate officer participates in wrongful conduct or with knowledge approves of the conduct, then the officer, as well as the corporation, is liable for the penalties.” Grayson v. Nordic Const. Co., Inc.,

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636 F. Supp. 2d 1128, 2008 WL 5000374, 2008 U.S. Dist. LEXIS 96286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loops-llc-v-amercare-products-inc-wawd-2008.