Monsanto Co. v. Campuzano

206 F. Supp. 2d 1271, 2002 U.S. Dist. LEXIS 18434, 2002 WL 1292003
District Court, S.D. Florida·Decided May 29, 2002·No. 99-2082-CIV·Published·Cited by 2 cases

Opinion

Order Granting Summary Judgment in Favor op the F. Garoia Defendants

JORDAN, District Judge.

Merchant seeks a permanent injunction restraining the defendants’ sale and distribution of Equal tabletop sweetener, as well as monetary relief for alleged trademark and copyright infringement, false designation of origin, false description and dilution, unjust enrichment, and Florida law claims of unfair competition, injury to business reputation, dilution of the distinctive quality of its trademarks, and participation in unconscionable, unfair, and deceptive acts or practices.

The defendants Fausto J. Campuzano, Maria Campuzano and F. Garcia Wholesale & Export, Inc. (F. Garcia defendants) move for summary judgment against Meri-sant. Federal jurisdiction exists pursuant to 15 U.S.C. § 1121(a), 17 U.S.C. § 101 et seq. and 28. U.S.C. §§ 1831, 1338 and 1367.

For the reasons which follow, the F. Garcia defendants’ motion for summary judgment [D.E. 134] is Granted.

I. SummaRy Judgment Standard

Summary judgment “shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). A material fact is one that might affect the outcome of the case. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Where the non-moving party fails to prove an essential element of its case for which is has the burden of proof at trial, summary judgment is warranted. See Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Hilburn v. Murata Elecs. North Am. Inc., 181 F.3d 1220, 1225 (11th Cir.1999). Thus, the task is to determine whether, considering the evidence in the light most favorable to Merisant, there is evidence on which the trier of fact could reasonably find a verdict in its favor. See Liberty Lobby, 477 U.S. at 251, 106 S.Ct. 2505; Hilburn, 181 F.3d at 1225; Allen v. Tyson Foods, Inc., 121 F.3d 642, 646 (11th Cir.1997).

*1273 II. Undisputed Relevant Facts 1

Fausto Campuzano worked for- Hunt-Wesson since 1972. See Deposition of Fausto Campuzano at 8 [D.E. 168, 164, 165,166] 2 . While he was at Hunt-Wesson, he sold institutionally packaged Equal to a large food service concern, Henry Lee, as well as to smaller Latin distributors including Restaurant Depot, Jetro Cash & Carry, and Leovenar. See id. at 14,17,18.

Mr. Campuzano became the owner of F. Garcia Wholesale & Export, a food service products company originally owned by his father, in November of 1997. See id. at 33. His wife, Maria Campuzano is the secretary/treasurer of the company and Mr. Campuzano’s son and mother occasionally help out. See id. at 121, 122, 127. The company’s main office is at Mr. Campuza-no’s home. See id. at 122.

After Mr. Campuzano became president of F. Garcia, the company purchased cases of institutionally packaged Equal sweetener from suppliers of the product in the United States and sold it to customers in the United States. Although Mr. Campu-zano had worked at Hunb-Wesson for many years, and Hunb-Wesson distributed Equal, F. Garcia did not purchase the Equal product from Hunt-Wesson. See id. at 53. Instead, Mr. Campuzano made payments to Louis Lubitz, a Hunb-Wesson sales representative who helped to make extra quantities of promotionally priced Equal product available to Kansas Marine, where F. Garcia purchased it. See id. at 80-81,107, 157-58,173, 218-20. Mr. Cam-puzano paid Mr. Lubitz by writing checks to both Mr. Lubitz and to Mr. Lubitz’s wife. See id. at 220. F. Garcia stored the boxes of Equal it purchased at a warehouse it leased from Sari Express, Inc., and hired Casanova Trucking to pick up the Equal product from Kansas Marine, transport it to Sari’s warehouse, and then ship it to customers who were the eventual purchasers.

F. Garcia sold Equal to a number of different entities which made lawful use of the Equal that they purchased from F. Garcia, including B.C. Coffee, Sysco, Cheney Brothers, Beaver Street Foods, and Purity Condiments. See id. at 106, 135-36. Prior to Mr. Campuzano’s ownership of F. Garcia, he sold Equal to Restaurant Depot, Sysco, Jetro, and a coffee distributor. See id. at 42. Though Mr. Campuza-no was aware of export departments in those companies, and he thought that they would sell Equal for export, he was not aware of the “intimate operations” of the companies and whether or not they actually sold the Equal product for export. See id.

F. Garcia also sold Equal to the Trio defendants (Trio International and its owner Mark Siegel). The Equal packaging was not changed from the time F. Garcia purchased the Equal up to the time of delivery to Trio. F. Garcia had no control over Trio’s subsequent use of Equal, nor did F. Garcia ever make any kind of investment in Trio. See id. at 140. Though the Trio defendants and Alvaro Buendia repackaged the Equal product into counterfeit boxes which the Trio defendants sold to food service purchasers, the repackaging was not done at the Sari ware *1274 house or any warehouse facility in any way connected with F. Garcia. 3

III. Discussion

“If a manufacturer or distributor intentionally induces another to infringe a trademark, or if it continues to supply its product to one whom it knows or has reason to know is engaging in trademark infringement, the manufacturer or distributor is contributorially responsible for any harm done as a result of their deceit.” Inwood Laboratories, Inc. v. Ives Laboratories, Inc., 456 U.S. 844, 854, 102 S.Ct. 2182, 72 L.Ed.2d 606 (1982). On the other hand, the mere sale of a genuine trademarked product without the trademark owner’s consent does not violate the Lanham Act, 15 U.S.C. §§ 1114, 1125. See Matrix Essentials, Inc. v.

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Monsanto Co. v. Campuzano, 206 F. Supp. 2d 1271, 2002 U.S. Dist. LEXIS 18434, 2002 WL 1292003 (S.D. Fla. 2002).

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