Luv N Care Ltd v. Jackal International Ltd

CourtDistrict Court, W.D. Louisiana
DecidedSeptember 23, 2022
Docket3:18-cv-00534
StatusUnknown

This text of Luv N Care Ltd v. Jackal International Ltd (Luv N Care Ltd v. Jackal International Ltd) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Luv N Care Ltd v. Jackal International Ltd, (W.D. La. 2022).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA MONROE DIVISION LUV N’ CARE, LTD. CIVIL ACTION NO. 3:18-CV-00534 VERSUS JUDGE TERRY A. DOUGHTY JACKEL INTERNATIONL LTD., MAG. JUDGE PEREZ-MONTES N/K/A MAYBORN (UK) LTD., et al. RULING Pending before the Court is Plaintiff Luv n’ care, Ltd.’s (“LNC”) Motion for Partial Summary Judgment Dismissing the Defendants’ Counterclaim [Doc. No. 210]. Defendant Mayborn Group Limited, Jackel International Limited, Mayborn USA, Inc., Jackel China, Ltd., Mayborn Anz Pty, Ltd., and Product Marketing Mayborn, Ltd (collectively “Mayborn”) responded to the motion. [Doc. No. 230]. LNC filed a reply. [Doc. No. 250]. For the following reasons, the motion is DENIED. Also pending before the Court is Mayborn’s Motion for Relief Pursuant to Rule 56(d) [Doc. No. 231]. LNC responded to the motion. [Doc. No. 236]. Mayborn filed a reply. [Doc. No. 253]. For the following reasons, the motion is GRANTED. I. FACTUAL AND PROCEDURAL BACKGROUND

LNC is a Louisiana corporation with its place of business in Monroe, Louisiana. LNC designs, manufactures, and sells baby products under the “Nuby” brand name. Mayborn is also in the business of designing, manufacturing, marketing, and selling baby products. Mayborn sells its own products under the brand name Tommee Tippee. At issue are two distribution agreements, executed in 2003 and 2008. A. The Previous Litigation In May 24, 2010, LNC brought suit against Mayborn in state court alleging breach of the 2008 Agreement by selling certain soft-spout, flip-top, and straw cups with a silicone compression valve (“LNC I’). Mayborn denied copying or using LNC’s product designs, and filed reconventional demands seeking a declaratory judgment that the 2003 and 2008 Agreements were unenforceable. [Doc. No.134-3 at 9130]. ! LNC J went to trial, and the jury found in favor of LNC and against Mayborn on LNC’s claims of breach of the distribution agreements and the Louisiana Unfair Trade Practices Act (““LUTPA”). A judgment was entered on May 22, 2013, which provided that Mayborn breached the 2003 or 2008 distribution agreements “‘with respect to Jackel’s (1) soft spout cups; (2) flip-top cup; and (3) straw cup.” [Doc. No. 63-2 at 1]. More specifically, the “Litigated Products” identified in Exhibit A to the Judgment: (1) First Cup; (2) Kids on the Go Active Cup; (3) Tip It Up Cup; (4) Tip It Up Trainer Cup; (5) Tip It Up Beaker Cup; (6) Tip It Up Sportster Cup; and (7) Tip It Up Flip Top Cup. EXHIBIT A- Litigated Products FIRST CUP pint | Teo | “cur” | saananco siccome, | eae

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' Citations to the parties’ filings are to the filing’s number in the docket (Doc. No.) and pin cites are to the page numbers assigned through ECF. Page 2 of 14

Id. at 3. The jury also found (and the court concluded) that (1) Defendant and its affiliates are a single business entity bound by the terms of both distribution agreements; (2) both distribution agreements are valid and not void as against public policy; and (3) Defendant violated the LUTPA. [Doc. No. 63-1 at 118-122; Doc. No. 63-2 at 1-3].

Following the jury verdict, the state court entered a permanent injunction enjoining Mayborn from selling any of the Litigated Products “as well as any further versions thereof” or other non-litigated products not in existence at the commencement of the January 2013 trial that are copies and/or colorable imitations of “Plaintiff’s silicone compression valve: (1) soft spout cups; (2) flip-top cups; or (3) straw cups.” [Doc. No. 63-2 at 4]. On May 3, 2013, before the entry of final judgement in LNC I, LNC filed a second state court action (“LNC II”) in the 4th Judicial District Court for the Parish of Ouachita, alleging that Mayborn’s sales of “additional products” also breached the same agreements and violated LUTPA. [Doc. No. 28-6]. Mayborn removed that lawsuit to federal court. LNC voluntarily dismissed LNC II on August 27, 2013. Although all parties appealed the judgment in LNC I, the appeal was settled and dismissed

on November 21, 2013. On August 14, 2014, LNC filed a third action (“LNC III”) in the Eastern District of Texas against Mayborn. In that lawsuit, LNC focused on the “additional products” from LNC II and added patent infringement claims and LUTPA claims. The district court dismissed LNC’s breach of the distribution agreements and the LUTPA claims as barred by res judicata. The patent case settled, and the res judicata decision was never appealed. A final judgement in LNC III issued on December 18, 2015, and LNC II and LNC III were dismissed with prejudice. In October 2015, LNC filed LNC IV in the 4th Judicial District Court for the Parish of Ouachita, alleging breach of contract and LUTPA claims as to Mayborn’s “Non-Spill” Insulated Straw Tumbler. LNC IV was dismissed without prejudice, after the parties executed a settlement agreement dated December 18, 2015. On March 23, 2018, LNC filed suit against Mayborn in the Fourth Judicial District Court, Ouachita Parish, Louisiana, and the case was removed to this Court shortly thereafter. The “Alleged Products” at issue in this case are: (1) the Insulated Straw Tumbler; (2) the Trainer

Straw Cup; (3) the Tuff Stuff Straw Tumbler; and (4) the Transition Cup. [Doc. No. 78 at ¶ 38]. These four Alleged Products were not at issue in LNC I. LNC contends that in marketing and selling the Alleged Products, Mayborn has “willfully and intentionally breached one or both distribution agreements by improperly using LNC’s products, product designs, and non- confidential proprietary information to market and sell competing products without LNC’s consent and without paying the royalty Jackel expressly agreed it would pay.” [Doc. No. 210-1 at 5]. In response to the Complaint, Mayborn moved for sanctions and, upon the filing of LNC’s proposed Amended Complaint, sought sanctions in a second motion. [Doc. Nos. 28, 47]. On December 5, 2018, the Court held an evidentiary hearing on Mayborn’s sanctions motions. The

hearing focused on the 2003 and 2008 Agreements, the State Court Action Judgment and Permanent Injunction, the First Settlement Agreement which was limited to the seven Litigated Products, the four Alleged Products, and various product designs contained in LNC’s Nuby and Natural Touch branded products. On March 14, 2019, the Court denied both sanctions motions and granted LNC’s leave to amend the Complaint. [Doc. Nos. 76, 77]. LNC filed an Amended Complaint on that same day. [Doc. No. 78]. A state court case is also pending, but is stayed pending the resolution of this case. [Doc. No. 198-1 at 8 (Hearing Tr. Luv N’ Care v. Jackel nternational Ltd., No. 19-2306, April 14, 2021 (4th JDC, Ouachita Parish))]. On February 8, 2021, Mayborn filed its Answer and Counterclaim to LNC’s Amended Complaint. [Doc. No. 168]. Mayborn’s Counterclaim contains five counts. Counts I and II seek declaratory judgments that LNC’s claims are barred by the doctrines of collateral estoppel, res judicata, acquiescence, and waiver. Id. at ¶¶ 105–14. Count III pleads unfair competition in violation of LUTPA by LNC’s predatory litigation. Id. at ¶¶ 115–22. Count IV pleads breach of contract because “[t]o the extent LNC’s allegations of breach of contract against Mayborn are

valid, the 2003 and 2008 distribution agreements must then also prohibit LNC from using in any fashion Mayborn’s products or product designs and the agreements then impose continuing obligations not to do so on the part of LNC.” Id. at ¶¶ 123–34. Count V pleads unfair competition in violation of LUTPA by LNC’s conduct surrounding its breach of contract. Id. at ¶¶ 135–49. On May 24, 2021, the parties held a status conference and agreed to have an “early dispositive motion” period. [Doc. No. 197]. On November 2, 2021, the Court denied LNC’s Motion for Leave to File Second Supplemental and Amending Complaint [Doc. No.

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Luv N Care Ltd v. Jackal International Ltd, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luv-n-care-ltd-v-jackal-international-ltd-lawd-2022.