National Grange of the Order of Patrons of Husbandry v. California State Grange

182 F. Supp. 3d 1065, 94 Fed. R. Serv. 3d 788, 2016 U.S. Dist. LEXIS 53038, 2016 WL 1587193
CourtDistrict Court, E.D. California
DecidedApril 20, 2016
DocketCIV. NO. 2:14-676 WBS AC
StatusPublished
Cited by17 cases

This text of 182 F. Supp. 3d 1065 (National Grange of the Order of Patrons of Husbandry v. California State Grange) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Grange of the Order of Patrons of Husbandry v. California State Grange, 182 F. Supp. 3d 1065, 94 Fed. R. Serv. 3d 788, 2016 U.S. Dist. LEXIS 53038, 2016 WL 1587193 (E.D. Cal. 2016).

Opinion

MEMORANDUM AND ORDER RE; MOTION FOR INJUNCTION

WILLIAM B. SHUBB, UNITED STATES DISTRICT JUDGE

Plaintiff National Grange of the Order of Patrons of Husbandry brought this action against defendant California State Grange for trademark infringement arid unfair competition under the Lanham Act. Presently before the court is plaintiffs motion for an injunction pursuarit to the Lan-ham Act, 15 U.S.C. § 1116(a). (Docket No. 126.) For the reasons explained below, plaintiffs motion is GRANTED in part.

I. Factual and Procedural Background

Plaintiff is a national fraternal organization founded in 1867 to promote the interests of farming and agriculture. (July 14, 2015 Order at 1-2 (Docket No. 60).) Plaintiff has grown to a network of approximately 2,000 local chapters across the country, through which it provides a variety of goods and services to agricultural [1070]*1070communities. (Id. at 2:) Plaintiff owns numerous registered numerous trademarks featuring the word “Grange,” which it uses for associational, educational, and advocacy activities. (Id.)

Plaintiff chartered defendant as its affiliate California state chapter in 1873. (Id.) As a chartered affiliate, defendant, collected dues from local subordinate granges and turned over a portion of those dues to plaintiff. (Id.) In 1946, defendant registered as a non-profit corporation with the California Secretary of State. (Huber Deck ¶ 8, Mar. 22, 2016 (Docket No. 126-3).)

In 2012, a dispute arose between plaintiff and defendant. (Compl. ¶ 5 (Docket No. 1).) As a result, plaintiff revoked defendant’s charter and the parties disaffiliated. (Id. ¶ 7.) Plaintiffs California-based members subsequently voted to reorganize a California state chapter under the name Grange of the State of California’s Order of Patrons of Husbandry,' Chartered. (Id. ¶ 38.)

Despite the parties’ disaffiliation, defendant continued to use its registered corporate name, California State Grange, and represent itself publically as California State Grange on its website, at events, and in its newsletters. (July 14, 2016 Order at 2.) In March 2014, plaintiff filed this action, bringing claims for (1) federal trademark infringement under Section 32 of the Lanham Act, 15 U.S.C. § 1114; (2) unfair competition and false designation of origin under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); (3) federal trademark dilution under § 43(c) of the Lanham Act, 15 U.S.C. § 1125(c); and (4) federal trademark counterfeiting under § 32(1) of the Lanham Act, 15 U.S.C. § 1114(1). (Compl. ¶¶ 48-101.)1

On July 14, 2015, the court granted plaintiffs motion for partial summary judgment on its claims for trademark infringement and unfair competition and false designation of origin. (July 14, 2015 Order at 12, 19.)2 The court then denied plaintiffs motion to enjoin defendant from using the words “Granger,” “CSG,” and “CG” because summary judgment was limited to the use of “Grange.” (Sept. 29, 2015 Order at 4.) On September 29, 2015, the court entered final judgment permanently enjoining “defendant and its agents, affiliates, and assigns, or any. party acting in concert with defendant and its agents, affiliates, and assigns from using marks containing the word ’Grange.’” (Docket No. 86.)

On October 28, 2015, defendant filed a notice of appeal from the court’s judgment and its July 14 and September 29 Orders. (Docket No. 87.) Plaintiff cross-appealed the portion of the court’s September 29, 2015 Order limiting injunctive relief, to, the word “Grange.” (Docket No. 90.) The appeals are currently pending before the United States Court of Appeals for the Ninth Circuit. In January 2016, the court denied defendant’s motion to stay the injunction pending appeal, holding, that plaintiff “would be substantially injured by defendant’s continued infringement of its trademark were the court to grant a stay of the injunction.” (Jan, 12, 2016 Order at 4 (Docket No. 108).)

Defendant additionally registered with Sacramento County to do business as “Cal[1071]*1071ifornia State Guild” and “CSG.” (Sept. 29, 2015 Order at 4.) To date, however, defendant continues to use “California State Grange” as its corporate name on file with the California Secretary of State. (McFarland Decl. ¶¶ 12-13, Feb. 22, 2016 (“McFarland I Decl”) (DocketNo. 114-1).) Based on defendant’s continued use of “California State Grange,” among other things, plaintiff brought a motion for an order to show cause why defendant should not be held in contempt for violating the court’s injunction. (Docket No. 109.) The court denied that motion without prejudice to plaintiff filing the pending motion and requesting to enjoin defendant’s specific conduct based on the issues litigated and evidence presented to the court at the time of the injunction. (Docket Nos. 117, 120, 125.)

Plaintiff now moves to enjoin defendant, its agents, affiliates, and any party acting in concert with defendant, from: (1) using “Grange,” “Granger,” or “CSG” in conducting business activities or as part of a business, trade, or domain name; (2) using “Grange” in corporate registrations or other filings with any federal, state, or local government; and (3) representing themselves to be the successor to “California State Grange.” (Docket No. 126-4.) Plaintiff further requests that defendant (4) remove the name “Grange” from all telephone and business directory listings; (5) include a prominent disclaimer on its website and in all future communications that it is “not affiliated with the California State Grange”; (6) include a hyperlink on its website that redirects users to plaintiffs California-based grange website; and (7) pay plaintiff reasonable attorney’s fees in bringing' the pending motion and its previous motion for an order to show cause why defendant should not be held in contempt. (Id.)

II. Legal Standards

A. Injunctive Relief Under the Lanham Act

Plaintiff here succeeded on its claims for trademark infringement, 15 U.S.C., § 1114, and unfair competition, 15 U.S.C. § 1125(a), under the Lanham Act. (See July 14, 2015 Order.) Defendant has conceded that its services are identical to those offered by plaintiff and that the use of “Grange” by two California organizations had caused actual confusion among consumers and “great confusion” among local granges. (Id, at 10-11; see also Compl.

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Bluebook (online)
182 F. Supp. 3d 1065, 94 Fed. R. Serv. 3d 788, 2016 U.S. Dist. LEXIS 53038, 2016 WL 1587193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-grange-of-the-order-of-patrons-of-husbandry-v-california-state-caed-2016.