Mount v. America's Insured, LLC

CourtDistrict Court, M.D. Florida
DecidedJuly 11, 2023
Docket6:22-cv-02051
StatusUnknown

This text of Mount v. America's Insured, LLC (Mount v. America's Insured, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mount v. America's Insured, LLC, (M.D. Fla. 2023).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION

RAY MOUNT,

Plaintiff,

v. Case No: 6:22-cv-2051-PGB-EJK

AMERICA’S INSURED, LLC, CHRISTOPHER ALLENGER and KENNETH PARSONS,

Defendants. / ORDER This cause comes before the Court on the following: 1. Plaintiff Ray Mount’s (the “Counter-Defendant”) Motion to Strike Defendants America’s Insured LLC (“Counter-Plaintiff AI LLC”)) and Christopher Allenger’s (“Counter-Plaintiff Allenger”) Affirmative Defenses (Doc. 32 (the “First Motion to Strike”)) and Counter-Plaintiffs AI LLC and Allenger’s response (Doc. 43); 2. The Counter-Defendant’s Motion to Dismiss Counter-Plaintiffs AI LLC and Allenger’s Counterclaims (Doc. 33 (the “First Motion to Dismiss”)) and the Counter-Plaintiffs’ response (Doc. 50); 3. The Counter-Defendant’s Motion to Strike Defendant Kenneth Parson’s (“Counter-Plaintiff Parsons”) Affirmative Defenses (Doc. 55 (the “Second Motion to Strike”)) and Counter-Plaintiff Parson’s response (Doc. 57); and 4. The Counter-Defendant’s Motion to Dismiss Counter-Plaintiff

Parsons Counterclaims (Doc. 54 (the “Second Motion to Dismiss”)) and Counter-Plaintiff Parson’s response (Doc. 56). Upon due consideration, all four motions are granted in part and denied in part. I. BACKGROUND

This case stems from business relationships gone sour and an ensuing trademark dispute regarding the “America’s Insured” trademark (the “Contested Mark”). (Docs. 1, 23, 47). Counter-Defendant registered the Contested Mark with the United States Patent and Trademark Office with U.S. Trademark Registration No. 6,759, 316 on June 14, 2022. (Doc. 1, ¶¶ 1, 2). However, the Counter-Defendant alleges the Contested Mark was first in use in connection with the sale of insurance

agency and brokerage services dating back to at least January of 2000. (Id. ¶¶ 2, 11–12). Nevertheless, the Counter-Defendant alleges that since around June 1, 2020, the Counter-Plaintiffs have engaged in a pattern of behavior aimed at capitalizing on the Contested Mark’s reputation, good will, and its associated customer base by misleading customers into purchasing their identical and

competing insurance services. (Id. ¶ 3). More specifically, this allegedly illegal behavior arose due to the fallout from the sale on June 1, 2020 of America’s Insured, LLC (herein referred to as Counter- Plaintiff AI, LLC), an entity created in 2018 by non-party Brent Argusa (“Non- Party Argusa”) allegedly at the behest of Counter-Defendant. (Id. ¶¶ 16, 18–21). At the time of the entity’s creation, Counter-Defendant allegedly agreed to

revocably license the Contested Mark and its related design to Counter-Plaintiff AI LLC. (Id. ¶¶ 16, 22–24). After Non-Party Argusa stepped away as managing member of Counter-Plaintiff AI LLC in April of 2020, Counter-Defendant began discussions with Counter-Plaintiffs Parsons and Allenger to take on this role. (Id. ¶¶ 25–27). Non-Party Argusa then orally agreed to transfer controlling ownership

stakes in Counter-Plaintiff AI LLC on June 1, 2020. (Id. ¶ 28). The contested terms of this transfer and the fallout from it make up the bulk of this dispute: Counter- Defendant alleges he was supposed to at some point receive a controlling interest in the entity after the initial transfer while Counter-Plaintiffs Allenger and Parsons aver this was never their understanding. (Compare Doc 1 with Doc. 23 and Doc. 47). Put simply, in Counter-Defendant’s view Counter-Plaintiffs did not live to

their end of the bargain and thus improperly began to utilize the Contested Mark, even after Counter-Defendant revoked the oral license for its use by Counter- Plaintiff AI LLC. (Id. ¶¶ 28–50). In order to remedy these alleged wrongs, the Counter-Defendant filed the initial Complaint alleging the following claims: unfair competition (Count I),

trademark infringement (Count II), false designation of origin (Count III), trademark counterfeiting (Count IV), and cybersquatting (Count V). (Id. ¶¶ 51– 99). The Counter-Plaintiffs answered, asserted forty affirmative defenses, and brought three counterclaims: non-infringement (Count I), trademark invalidity (Count II), and trademark cancellation (Count III). (Docs. 23, 47).1 Therein, Counter-Plaintiffs allege it was never their understanding that Counter-Defendant

ever held any ownership interest in either Counter-Defendant AI LLC or in the Contested Mark or that they would be required to transfer any such related interests after the June 1, 2020 sale. (Doc. 23, ¶¶ 103–06; Doc. 47, ¶¶ 103–06). The Counter-Defendant now moves to strike the affirmative defenses and dismiss the three counterclaims. (Docs. 32, 33, 54, 55). After the Counter-

Plaintiffs’ responses in opposition (Docs. 43, 50, 56, 57), this matter is ripe for review. II. STANDARD OF REVIEW A. Motion to Strike Federal Rule of Civil Procedure 12(f) provides that “[t]he court may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent,

or scandalous matter.” Affirmative defenses generally are subject to Federal Rule of Civil Procedure 8, which demands a “short and plain” statement of those defenses. Although the Court has broad discretion in ruling on motions to strike, the Court may only strike an affirmative defense when it is “insufficient as a matter of law.” Microsoft Corp. v. Jesse’s Computs. & Repair, Inc., 211 F.R.D. 681, 683–

84 (M.D. Fla. 2002) (quoting Anchor Hocking Corp. v. Jacksonville Elec. Auth.,

1 Although Counter-Plaintiffs AI LLC and Allenger and Counter-Plaintiff Parsons answered and counterclaimed separately, both answer-counterclaims are identical in almost every respect beyond varied stylizations of the relevant parties. (Compare Doc. 23 with Doc. 47). 419 F. Supp. 992, 1000 (M.D. Fla. 1976)); see also Fabrica Italiana Lavorazione Materie Organiche, S.A.S. v. Kaiser Aluminum & Chem. Corp., 684 F.2d 776, 779 (11th Cir. 1982) (affirming the striking of a defendant’s affirmative defense as it

was “legally insufficient”). Moreover, “[w]hile an answer need not include a detailed statement of the applicable defenses, a defendant must do more than make conclusory allegations. If the affirmative defense comprises no more than bare bones conclusory allegations, it must be stricken.” Microsoft, 211 F.R.D. at 684 (internal quotations and citations omitted).

Generally, motions to strike affirmative defenses are disfavored “because striking a portion of a pleading is a drastic remedy and because it is often sought by the movant simply as a dilatory tactic.” Waste Mgmt. Holdings, Inc. v. Gilmore, 252 F.3d 316, 347 (4th Cir. 2001). However, where a defense “might confuse the issues in the case and would not, under the facts alleged, constitute a valid defense to the action . . . [it] should be deleted.” Id.; see also Reyher v. Trans World

Airlines, Inc., 881 F. Supp. 574, 576 (M.D. Fla. 1995). Nevertheless, in most situations when striking an affirmative defense, courts provide leave for defendants to replead unless doing so would be futile or unnecessary. See e.g., Romero v. Southern Waste Sys. LLC, 629 F. Supp. 2d 1356 (S.D. Fla. 2009). B. Motion to Dismiss for Failure to State a Claim

“A motion to dismiss a counterclaim pursuant to Federal Rule of Civil Procedure

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Mount v. America's Insured, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mount-v-americas-insured-llc-flmd-2023.