Miller v. Weinmann

District Court, D. Nevada·Decided August 23, 2023·No. 2:19-cv-02213·Unknown

Opinion

* * *

DENNIS R. MILLER, et al., Case No. 2:19-CV-2213 JCM (DJA)

Plaintiff(s), ORDER

v.

EDWARD M. WEINMANN, et al.,

Defendant(s).

Presently before the court is defendants Edward Weinmann (“Weinmann”) and Advanced Masonry Consulting, Inc.’s (“AMC”) (collectively “defendants”)’s motion for summary judgment (ECF No. 57). Plaintiffs Dennis Miller (“Miller”) and Omni Block, Inc. (“Omni Block”) (collectively “plaintiffs”) filed a response (ECF No. 58), to which defendants replied (ECF No. 59). Also before the Court is defendants’ list of objections to evidence offered by plaintiffs in their response to defendants’ motion for summary judgment. (ECF No. 60).1 Plaintiffs filed a response to these objections (ECF No. 61), to which defendants replied (ECF No. 62). I. Background This action is a trademark dispute arising from an alleged breach of contract and commercial misconduct. Miller is the founder of Omni Block, a company formed in 1993 that 1 Defendants filed ECF No. 60 as a motion to strike, but they titled the filing as an objection. The court will address this issue accordingly. markets insulated concrete masonry blocks for use in residential and commercial construction. (ECF No. 38 at 3); (ECF No. 57 at 3). On August 24, 2012, Miller and Weinmann entered into an independent contractor agreement (the “agreement”) under which Weinmann’s primary responsibility was to market the blocks and license third parties, specifically cementitious block manufacturers and distributors. (ECF No. 38 at 3). These manufacturers and distributors would subsequently “promote, advertise, manufacture, use, install, distribute, assemble, sell, and offer for sale” Miller and Omni Block’s patented unique non-mortar interfering insulating inserts and corresponding block or brick.” (Id.). On February 18, 2019, Miller and Weinmann terminated the agreement at Weinmann’s behest. (Id.). Plaintiffs allege that Weinmann’s motivation to seek rescission of the agreement was to take over plaintiffs’ business by soliciting their customers and undermining plaintiffs while the agreement was still in place. (Id. at 3-4). Plaintiffs refer to two specific instances in their first amended complaint highlighting Weinmann’s misconduct. First, plaintiffs posit that following termination of the agreement, Weinmann used an Omni Block licensee operating outside his territory to supply actual Omni Block product to a contractor working on a project at the Orlando International Airport (the “airport project”). (Id. at 5). Plaintiffs contend Weinmann made a misrepresentation to the licensee by claiming he was still working with Omni Block, as his main goal was to contract for the airport project on behalf of his own company, AMC. (Id.). Omni Block alleges it designed the masonry aspects of the airport project and received no profits for its efforts. (Id.). Additionally, Weinmann used terms on his invoices referencing Omni Block, despite no longer working for Omni Block, in securing these deals for his benefit through AMC. (Id. at 8). The second instance accusing Weinmann of wrongdoing involves what plaintiffs refer to as the “Columbia project,” wherein they claim he used Omni Block specifications to win a major project at 640 Columbia Street in New York. (Id. at 9). Plaintiffs’ first amended complaint asserts the following causes of actions: (1) breach of contract; (2) breach of the implied covenant of good faith and fair dealing; (3) intentional interference with contractual relations; (4) trademark infringement; (5) unfair competition under the Lanham Act; (6) trade secret theft; (7) fraud in the inducement; and (8) defamation. (Id. at 6- 11). Weinmann filed an individual counterclaim in conjunction with defendants’ answer, claiming breach of contract, contractual breach of the implied covenant of good faith and fair dealing, intentional interference with contractual relations, and fraud. (ECF No. 39 at 17-21). Defendants now move for summary judgment on all of plaintiffs’ claims. (ECF No. 57). Weinmann also moves for summary judgment on his own claim for breach of contract, alleging that Miller owes him $11,300.00 as reimbursement for product testing. (Id. at 25). II. Legal Standard The Federal Rules of Civil Procedure allow summary judgment when the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A principal purpose of summary judgment is “to isolate and dispose of factually unsupported claims . . . .” Celotex Corp. v. Catrett, 477 U.S. 317, 323– 24 (1986). For purposes of summary judgment, disputed factual issues should be construed in favor of the non-moving party. Lujan v. Nat’l Wildlife Fed., 497 U.S. 871, 888 (1990). However, to be entitled to a denial of summary judgment, the non-moving party must “set forth specific facts showing that there is a genuine issue for trial.” Id. In determining summary judgment, the court applies a burden-shifting analysis. “When the party moving for summary judgment would bear the burden of proof at trial, it must come forward with evidence which would entitle it to a directed verdict if the evidence went uncontroverted at trial.” C.A.R. Transp. Brokerage Co. v. Darden Rests., Inc., 213 F.3d 474, 480 (9th Cir. 2000). Moreover, “[i]n such a case, the moving party has the initial burden of establishing the absence of a genuine issue of fact on each issue material to its case.” Id. By contrast, when the non-moving party bears the burden of proving the claim or defense, the moving party can meet its burden in two ways: (1) by presenting evidence to negate an essential element of the non-moving party’s case; or (2) by demonstrating that the non-moving party failed to make a showing sufficient to establish an element essential to that party’s case on which that party will bear the burden of proof at trial. See Celotex Corp., 477 U.S. at 323–24. If the moving party fails to meet its initial burden, summary judgment must be denied, and the court need not consider the non-moving party’s evidence. See Adickes v. S.H. Kress & Co., 398 U.S. 144, 159– 60 (1970). If the moving party satisfies its initial burden, the burden then shifts to the opposing party to establish that a genuine issue of material fact exists. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986). To establish the existence of a factual dispute, the opposing party need not establish a material issue of fact conclusively in its favor. It is sufficient that “the claimed factual dispute be shown to require a jury or judge to resolve the parties’ differing versions of the truth at trial.” T.W. Elec. Serv., Inc. v. Pac. Elec. Contractors Ass’n, 809 F.2d 626, 630 (9th Cir. 1987). In other words, the nonmoving party cannot avoid summary judgment by relying solely on conclusory allegations that are unsupported by factual data. See Taylor v. List, 880 F.2d 1040, 1045 (9th Cir. 1989). Instead, the opposition must go beyond the assertions and allegations of the pleadings and set forth specific facts by producing competent evidence that shows a genuine issue for trial. See Celotex Corp., 477 U.S. at 324. At summary judgment, a court’s functio

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