Louisiana Granite Yard, Inc. v. La Granite Countertops, L.L.C.

47 So. 3d 573, 2010 La. App. LEXIS 1172, 2010 WL 3239036
CourtLouisiana Court of Appeal
DecidedAugust 18, 2010
Docket45,482-CA
StatusPublished
Cited by10 cases

This text of 47 So. 3d 573 (Louisiana Granite Yard, Inc. v. La Granite Countertops, L.L.C.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana Granite Yard, Inc. v. La Granite Countertops, L.L.C., 47 So. 3d 573, 2010 La. App. LEXIS 1172, 2010 WL 3239036 (La. Ct. App. 2010).

Opinions

CARAWAY, J.

| TThe plaintiff retailer/installer of granite filed suit for trade name infringement against a competing business incorporated by a former employee. Plaintiff seeks to enjoin defendant’s use of plaintiffs trade names. Following a preliminary injunction hearing, the trial court enjoined defendant from using, displaying or advertising the trade names of plaintiff. This appeal by defendant ensued.

Facts

In December of 2004, David Randall Cook incorporated a retail granite business specializing in granite countertops, called Louisiana Granite Yard, Inc. (hereinafter LGY).1 Cook’s wife, Somsri, operated a restaurant next door to Louisiana Granite Yard. From June of 2005 to February of 2008, Somsri’s brother, Sompong Sitkrong-wong (“Mark”), began working for the two businesses. While working at LGY, Mark met with customers, answered phones, took payments, performed computer input, measured jobs and created computer drawings.

In mid-February 2008, Cook terminated Mark’s employment. Subsequently in late February 2008, Mark incorporated his own granite business calling it LA Granite Countertops, L.L.C. (“LA Countertops”).2 Initially, Mark utilized his home address as the business address. On March 31, 2008, however, he changed the business address after he secured leased premises some 4.3 miles from LGY.

|2In September and October of 2008, the Louisiana Secretary of State approved LA Granite and Louisiana Granite as trade names for Cook’s business. Based upon allegations that Mark was utilizing LGY’s trade names (LA Granite and Louisiana Granite), LGY instituted suit for trade name infringement against LA Counter-tops on November 3, 2008. LGY alleged that LA Countertops used its “trade names, LA Granite and Louisiana Granite, in its day to day business activities,” and that the use of its trade names caused “actual confusion, mistake and/or deeep[577]*577tion” to LGY clients. Specifically, plaintiff alleged LA Countertops was receiving payment in the name of LA Granite and answered the phone using both trade names. In a supplemental petition, LGY also raised claims of unfair trade practices and alleged that the name LA Granite Coun-tertops, L.L.C., caused confusion to the public. Alleging that such activity was likely to injure the business reputation of LGY and dilute its business market, LGY prayed for injunctive relief under La. R.S. 51:222, et seq., relating to the use of the names and telephone numbers and damages and attorney fees. LA Countertops answered the suit and filed a reeonventional demand against LGY seeking the cancellation of the trade names Louisiana Granite and LA Granite.

On September 28, 2009, the trial court conducted a hearing on LGY’s motion for preliminary examination. At the hearing, Cook, his wife, Somsri, and Mark testified in addition to numerous customers of the two businesses. Specifically, LGY presented the testimony of three customers who were confused about the names of the two businesses.

|sMeIanie Petchak testified that in August of 2008 she purchased granite from LGY. Because of a change order, she tried to contact LGY. She looked in the phone book for the telephone number and called LA Countertops instead. Petchak testified that she was confused over the names of the two companies. On cross-examination, the witness admitted that she did not compare addresses before she called. She knew the name of LGY as Louisiana Granite.

Diana Roath also testified that she purchased granite from LGY. When she and her husband attempted to locate LGY, they were unable to find it. She called a number from a 2007 newspaper ad. The individual who answered the phone identified the business as LA Granite and gave her directions to LGY. She asked the person who answered the phone if she had reached “Louisiana Granite” and he said responded that the business was LA Granite. She asked if LA stood for Louisiana and he responded in the negative. Roath’s husband, Terry Roath, testified consistently with his wife.

Diane Cook, Cook’s sister, testified the she had worked for LGY answering the phone. When answering the phone, she utilized the names LA Granite, Louisiana Granite and Louisiana Granite Yard. Cook estimated that she received at least two “confused” customer calls per week. She also testified that she called LA Counter-tops and heard that they answered the phone under the name LA Granite.

Mark testified that he could not recall whether he referred to LGY as LA Granite or Louisiana Granite during the time he worked for his brother-in-law. Later, Mark testified that he had referred to the business as Louisiana Granite Yard, but not LA Granite Yard. Mark identified documents he prepared for a client which were entitled LA Granite Yard, but he claimed that he did not notice the details of the document. He later testified that he put the name LA Granite Yard on the documents at the request of Cook. Mark identified 34 documents including price quotes, drawings, bills, checks and deposit slips from November 2005 to February 2008, containing the names LA Granite, Louisiana Granite or Louisiana Granite Yard.

Mark testified that he never recalled customers referring to the business as LA Granite Yard or LA Granite. Nor did he answer the phone with LA Granite. Mark recalled Petchak’s phone call and admitted that he had called his sister concerning Petchak’s inquiry.

[578]*578Mark testified that he never held his business out as LA Granite or Louisiana Granite. He advertised his company in newspapers and the phone book utilizing the full name, “LA Granite Countertops.” He never instructed his clients to make checks payable to LA Granite, although he identified four checks which were made payable to LA Granite. Mark also identified numerous corporate documents which included the entire name of his company.

Somsri Cook testified that the names, LA Granite, Louisiana Granite and Louisiana Granite Yard were used to refer to LGY from the company’s inception in 2005. She identified approximately 250 pages of copies of checks and deposit slips dated June of 2005-September of 2008, made out to LLA Granite Yard, Louisiana Granite Yard, LA Granite, Louisiana Granite, La. Granite and La. Granite Yard. She knew that during his employment, Mark answered the business phone as LA Granite or Louisiana Granite.

In July of 2008, one of Mark’s customers mistakenly brought in a payment check to LGY. It was written to “LA Granite.” Somsri also testified that in July of 2009, a granite supplier sent a facsimile to LGY with the name of LA Countertops relating to an order made by LGY. A business card vendor also erroneously left a voice message at LGY for LA Countertops. In August and September of 2008 two LGY customers erroneously called LA Counter-tops to change LGY orders. Somsri testified that customers called her with confusion over the two company names. Somsri identified the sign which was presently in front of LGY which read LA. Granite, Yrd. She testified that the sign had been used by the business since late 2005. A photograph of the sign was introduced into evidence.

On cross-examination Somsri identified the phone book ads of LGY which advertised the company as Louisiana Granite Yard. Defendants submitted telephone book ads for both businesses dating from 2007-2010. Both businesses were listed on the same pages in the 2009-2010 phone book under the headings Counter Tops and Granite, under their respective names, Louisiana Granite Yard and LA Granite Countertops.

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Louisiana Granite Yard, Inc. v. La Granite Countertops, L.L.C.
47 So. 3d 573 (Louisiana Court of Appeal, 2010)

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Bluebook (online)
47 So. 3d 573, 2010 La. App. LEXIS 1172, 2010 WL 3239036, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-granite-yard-inc-v-la-granite-countertops-llc-lactapp-2010.