Marcel Fashions Group, Inc. v. Lucky Brand Dungarees, Inc.

779 F.3d 102, 113 U.S.P.Q. 2d (BNA) 1957, 2015 U.S. App. LEXIS 2794, 2015 WL 774560
CourtCourt of Appeals for the Second Circuit
DecidedFebruary 25, 2015
DocketDocket 12-4341-cv
StatusPublished
Cited by80 cases

This text of 779 F.3d 102 (Marcel Fashions Group, Inc. v. Lucky Brand Dungarees, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marcel Fashions Group, Inc. v. Lucky Brand Dungarees, Inc., 779 F.3d 102, 113 U.S.P.Q. 2d (BNA) 1957, 2015 U.S. App. LEXIS 2794, 2015 WL 774560 (2d Cir. 2015).

Opinion

LEVAL, Circuit Judge:

Plaintiff Marcel Fashions Group, Inc. (“Marcel” or “Plaintiff’) appeals from the judgment of the United States District Court for the Southern District of New York (Swain, J.) in favor of Defendants Lucky Brand Dungarees, Inc., Liz Claiborne, Inc., and Lucky Brand Dungarees Stores, Inc. (collectively, “Lucky Brand” or “Defendants”). Marcel’s suit sought damages and injunctive relief based on claims of trademark infringement, false designation of origin, and unfair competition under 15 U.S.C. §§ 1114, 1116, and 1125, as well as common law trademark infringement and unfair competition under Fla. Stat. § 495.151. The court granted Lucky Brand’s motion for summary judgment and denied leave to replead on the ground that the action was barred by res judicata.

*105 We conclude that a prior judgment in Plaintiffs favor awarding damages and an injunction did not bar Plaintiff from instituting a second suit seeking relief for alleged further infringements that occurred subsequent to the earlier judgment. We therefore vacate the grant of summary judgment and the denial of leave to amend the complaint. The district court also denied Marcel’s motion to hold Defendants in contempt for violation of an injunction in the prior litigation. We affirm this ruling as Marcel did not show that Defendants’ conduct violated the terms of the injunction.

BACKGROUND

I. Parties

Marcel, a Florida corporation, received a federal trademark registration in 1986 for “Get Lucky.” 1 Marcel has since sold jeans under that mark. In 1990, Defendant Lucky Brand Dungarees, Inc., a Delaware corporation, began selling jeans and other casual apparel under the mark “Lucky Brand” and other marks that include the word “Lucky.” It has sold this merchandise in major department stores and, as of January 2012, had more than 180 retail stores in the United States, with sales of nearly $400 million in 2011. It owns registered trademarks, including “Lucky Brand” and “Lucky Brand Dungarees.” Defendant Liz Claiborne, also a Delaware corporation, is the parent corporation of Lucky Brand Dungarees, Inc.

II. Prior Litigation

A. 2001 Action and Settlement

In September 2001, Marcel filed suit alleging unfair competition and trademark infringement against the Lucky Brand Defendants and others (the “2001 Action”). In May 2003, the parties settled the 2001 Action pursuant to a Release and Settlement Agreement, which provided that the Lucky Brand Defendants “shall desist henceforth from use of ‘Get Lucky’ as a trademark,” while acknowledging the Defendants’ “rights to use, license and/or register the trademark LUCKY BRAND and/or any other trademarks ... registered and/or used by Lucky Brand____” Joint App’x (“JA”) at 207-08.

B. 2005 Action

In 2004, Ally Apparel Resources LLC and/or Key Apparel Resources, Ltd. (collectively, “Ally”) launched a “Get Lucky” line of jeanswear and sportswear based on a license it received from Marcel. On July 27, 2005, Lucky Brand filed an action (the “2005 Action”) in the Southern District of New York (Swain, J.) against Ally, Marcel, and Ezra Mizrachi (the president of Marcel) (collectively the “2005 Marcel Parties”), alleging that they had engaged in unfair business practices and that the “Get Lucky” line infringed on Lucky Brand’s trademarks. •

The 2005 Marcel Parties counterclaimed against Lucky Brand’s use of the “Get Lucky” mark, asserting infringement and breach of the 2003 Settlement Agreement, and seeking to enjoin Lucky Brand from using the “Get Lucky” trademark or any other similar trademark. Notwithstanding Marcel’s acknowledgment of Lucky Brand’s right to use the “Lucky Brand” marks in the parties’ settlement of the 2001 Action, Marcel’s counterclaims sought to enjoin Lucky Brand’s use of “Lucky Brand” or “Lucky,” as confusingly similar to “Get Lucky.” See JA at 283.

*106 On April 22, 2009, as a sanction for misconduct in discovery, the district court enjoined Lucky Brand from using Marcel’s “Get Lucky” trademark (the “2009 Injunction”). In anticipation of a jury trial to resolve the remaining claims and counterclaims, the parties filed a Second Amended Joint Pre-Trial Statement, which identified the remaining issues to be resolved at trial. Marcel identified as a remaining issue, “[w]hether Marcel is entitled to an injunction against Lucky Brand enjoining Lucky Brand from selling merchandise using GET LUCKY, LUCKY, LUCKY BRAND or any other mark incorporating Lucky.” JA at 296.

At the conclusion of trial, the jury answered in the affirmative to Question 8 of the Verdict Form, which asked whether Lucky Brand “infringed Marcel Fashion’s ‘Get Lucky’ mark by using ‘Get Lucky,’ the ‘Lucky Brand’ marks and any other marks including the word ‘Lucky’ after May 2003.” JA at 355. For this infringement, the jury awarded the 2005 Marcel Parties compensatory and punitive damages.

Following the verdict, the parties negotiated and jointly drafted a Final Order and Judgment at the request of the district court. On May 13, 2010, Marcel’s counsel sent an email to Lucky Brand’s counsel attaching a draft, which proposed inclusion of a paragraph stating, “Lucky Brand Dungarees, Inc. and Liz Claiborne, Inc.... are permanently enjoined from further use of GET LUCKY, the LUCKY BRAND trademarks and any other trademarks using the word ‘Lucky.’ ” JA at 366. Lucky Brand refused to agree to the inclusion of this paragraph in the judgment. Marcel’s counsel removed the paragraph and resubmitted the proposed order, without that paragraph. On May 28, 2010, the district court adopted the proposed judgment (the “2010 Final Order and Judgment”). The Final Order and Judgment includes the substance of the 2009 Injunction, prohibiting Lucky Brand from using the “Get Lucky” mark, as well as the language of Question 8 of the Verdict Form, stating that the “Lucky Brand Parties infringed Marcel Fashion’s GET LUCKY trademark ... by using GET LUCKY, the LUCKY BRAND trademarks, and any other trademarks including the word ‘Lucky’ after May 2003.” JA at 26-27.

III. The Instant [2011] Action

On April 29, 2011, Marcel initiated the instant action by filing a complaint in the United States District Court for the Southern District of Florida seeking damages and injunctive relief prohibiting Lucky Brand from using the “Lucky Brand” trademarks (the “Instant Action”). The complaint alleges, inter alia, that Lucky Brand infringed Marcel’s “Get Lucky” trademark “by using the Lucky Brand marks in the identical manner and form and on the same goods for which they were found liable for infringement [in the 2005 Action].” JA at 15.

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779 F.3d 102, 113 U.S.P.Q. 2d (BNA) 1957, 2015 U.S. App. LEXIS 2794, 2015 WL 774560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marcel-fashions-group-inc-v-lucky-brand-dungarees-inc-ca2-2015.