Minka Lighting, LLC v. Wangs Alliance Corporation

CourtDistrict Court, C.D. California
DecidedJune 26, 2024
Docket5:24-cv-00965
StatusUnknown

This text of Minka Lighting, LLC v. Wangs Alliance Corporation (Minka Lighting, LLC v. Wangs Alliance Corporation) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Minka Lighting, LLC v. Wangs Alliance Corporation, (C.D. Cal. 2024).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES—GENERAL

Case No. EDCV 24-965-KK-SPx Date: June 26, 2024 Title:

Present: The Honorable KENLY KIYA KATO, UNITED STATES DISTRICT JUDGE

Noe Ponce Not Reported Deputy Clerk Court Reporter

Attorney(s) Present for Plaintiff(s): Attorney(s) Present for Defendant(s): None Present None Present

Proceedings: (In Chambers) Order GRANTING Plaintiff’s Motion for Remand or, Alternatively, Joinder [Dkt. 18]

I. INTRODUCTION

On April 8, 2024, plaintiff Minka Lighting, LLC (“Plaintiff”) filed the operative Complaint against defendant Wangs Alliance Corporation d/b/a WAC Lighting (“Defendant”) in San Bernardino County Superior Court, asserting common law trade dress infringement and related claims arising from Defendant’s alleged use of Plaintiff’s ceiling fan designs. ECF Docket No. (“Dkt.”) 1-3 (“Compl.”). On May 7, 2024, the action was removed to this Court. Dkt. 1.

On May 22, 2024, Plaintiff filed the instant Motion for Remand or, Alternatively, Joinder (“Motion”). Dkt. 18. The Court finds this matter appropriate for resolution without oral argument. See FED. R. CIV. P. 78(b); L.R. 7-15. For the reasons set forth below, Plaintiff’s Motion is GRANTED.

II. BACKGROUND

A. RELEVANT FACTS

As alleged in the Complaint, Plaintiff and Defendant are direct competitors in the United States ceiling fan market. Compl. ¶¶ 6-8, 11. Plaintiff is a California limited liability company with its principal place of business in Newport News, Virginia. Id. ¶ 1. Defendant is a corporation organized under the laws of New York that “maintains significant operations” in Ontario, California. Id. ¶ 2.

Plaintiff alleges Defendant has “engage[d] in an anti-competitive course of conduct designed to unfairly and unlawfully steal customers from” Plaintiff. Id. ¶ 12. Specifically, Plaintiff alleges Defendant produces ceiling fans with designs and model names that are “confusingly similar” to Plaintiff’s ceiling fans, enabling Defendant to “unfairly benefit from [Plaintiff’s] goodwill[.]” Id. ¶¶ 13-33. Plaintiff further alleges Defendant filed a United States International Trade Commission (“ITC”) complaint against Plaintiff, asserting patent infringement, and subsequently disseminated “false and misleading information” regarding the ITC complaint to customers of both Plaintiff and Defendant. Id. ¶¶ 12, 37-42.

In addition, Plaintiff alleges its sales have “dropped significantly” since 2021, when Defendant began selling ceiling fans with Plaintiff’s trade dress. Id. ¶ 44. According to Plaintiff, “the drop in [Plaintiff’s] sales has resulted in a commensurate increase in [Defendant’s] sales.” Id.

B. PROCEDURAL HISTORY

On April 8, 2024, Plaintiff filed the operative Complaint against Defendant in San Bernardino County Superior Court, asserting the following claims: (1) common law trade dress infringement; (2) violation of California’s Unfair Competition Law (“UCL”), Section 17200 of the California Business and Professions Code; and (3) intentional interference with prospective economic advantage. Dkt. 1-3.

On May 6, 2024,1 Defendant filed an Answer to the Complaint in San Bernardino County Superior Court. Dkt. 1-7.

On May 7, 2024, Defendant removed the action to this Court on the basis of diversity jurisdiction. Dkt. 1. In support of its Notice of Removal, Defendant submitted a declaration from Tigran Vardanian, Defendant’s General Counsel and Corporate Secretary, stating Defendant “has no executive offices or officers located in” California and its principal place of business – including its executive offices – is located in Port Washington, New York. Dkt. 3, Declaration of Tigran Vardanian in Support of Notice of Removal, ¶¶ 2, 4-5.

On May 22, 2024, Plaintiff filed the instant Motion seeking remand of this action. Dkt. 18. First, Plaintiff argues Defendant has not met its burden of establishing diversity of citizenship, given the Statement of Information Defendant filed with the California Secretary of State previously indicated its “Principal Executive Office” was located in Ontario, California.2 Id. at 12-20; see also dkt. 18-3, Declaration of Andy LeGolvan (“LeGolvan Decl.”), ¶ 2, Ex. A. Second, Plaintiff seeks leave to join Robert De’Armond, a California citizen who was allegedly employed by Plaintiff prior to serving as Defendant’s Vice President (“VP”) of Product Design and Development, as a

1 Defendant’s Answer is erroneously dated May 6, 2023. See dkt. 1-7 at 7. 2 On May 6, 2024, Defendant revised its Statement of Information to indicate its “Principal Office” was located in Port Washington, New York, rather than Ontario, California. LeGolvan Decl., ¶ 5, Ex. B. defendant pursuant to 28 U.S.C. § 1447(e). Dkt. 18 at 21-26; dkt. 18-1, Proposed First. Am. Compl. (“Proposed FAC”), ¶ 13; LeGolvan Decl., ¶ 7.

On May 30, 2024, Defendant filed an Opposition to the Motion, arguing (1) Defendant’s Port Washington, New York facility is its headquarters and principal place of business and, thus, diversity of citizenship exists; (2) Plaintiff’s request for joinder should be denied because the sole purpose of the request is to defeat diversity jurisdiction; and (3) even if Plaintiff’s request for joinder is granted, joinder of a non-diverse defendant fails to defeat diversity jurisdiction. Dkt. 21. In addition, Defendant filed an Application seeking leave to file Exhibit A to the declaration of Tigran Vardanian submitted in support of the Opposition under seal.3 Dkt. 19.

On June 6, 2024, Plaintiff filed a Reply in support of the Motion. Dkt. 25.

The matter thus stands submitted.

III. LEGAL STANDARD

Federal courts are courts of “limited jurisdiction” which “possess only that power authorized by Constitution and statute[.]” Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). Pursuant to 28 U.S.C. § 1441(a), a civil action may be removed from state to federal court if the action is one over which federal courts could exercise original jurisdiction.

Courts “strictly construe the removal statute against removal jurisdiction.” Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). Thus, “[f]ederal jurisdiction must be rejected if there is any doubt as to the right of removal in the first instance.” Id.; see also Luther v. Countrywide Home Loans Servicing LP, 533 F.3d 1031, 1034 (9th Cir. 2008) (holding “any doubt” as to the propriety of removal “is resolved against removability”). The party seeking removal bears the burden of establishing removal is proper by a preponderance of the evidence. Naffe v. Frey, 789 F.3d 1030, 1040 (9th Cir. 2015).

When an action is removed to federal court on the basis of diversity jurisdiction under 28 U.S.C. § 1332, the defendant must establish (1) complete diversity among the parties, and (2) the amount in controversy exceeds $75,000. Chavez v. JPMorgan Chase & Co., 888 F.3d 413, 415 (9th Cir. 2018).

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Minka Lighting, LLC v. Wangs Alliance Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/minka-lighting-llc-v-wangs-alliance-corporation-cacd-2024.