Nat'l Grange of the Order of Patrons of Husbandry & the Cal. State Grange v. Guild

334 F. Supp. 3d 1057
CourtDistrict Court, E.D. California
DecidedAugust 13, 2018
DocketCIV. NO. 2:16-201 WBS DB
StatusPublished

This text of 334 F. Supp. 3d 1057 (Nat'l Grange of the Order of Patrons of Husbandry & the Cal. State Grange v. Guild) 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
Nat'l Grange of the Order of Patrons of Husbandry & the Cal. State Grange v. Guild, 334 F. Supp. 3d 1057 (E.D. Cal. 2018).

Opinion

WILLIAM B. SHUBB, UNITED STATES DISTRICT JUDGE

Plaintiffs the National Grange of the Order of Patrons of Husbandry (the "National Grange") and California State Grange brought this action against defendants California Guild and Robert McFarland ("McFarland"), alleging that defendants continue to violate plaintiffs' trademark, copyright, and tangible property rights after the conclusion of Nat'l Grange v. Cal. State Grange, No. 2:14-cv-676 WBS DAD (E.D. Cal. filed Mar. 12, 2014) ("Grange I"). (Compl. (Docket No. 1).) Presently before the court are plaintiffs' and defendants' cross Motions for Summary Judgment (Docket Nos. 208, 210).

I. Factual and Procedural Background

On July 15, 1873, the National Grange created the California State Grange as its affiliated state-level chapter. (Decl. of Betsy Huber ("Huber Decl.") (Docket No. 54-6) ¶ 15.) As a chartered affiliate, the California State Grange collects dues from local Granges across California and turns over a portion of those dues to the National Grange. (Id. ¶ 18.) In 1946, the California State Grange registered as a corporation with the California Secretary of State. (Id. ¶ 15.) The California State Grange elected McFarland as its leader in 2009. (Id. ¶ 19.)

In 2012, a dispute arose between the National Grange and the California State Grange, leading to the suspension of the California State Grange's charter. (Id. )

*1062The National Grange revoked the California State Grange's membership and the two disaffiliated in 2013. (Id. ¶ 21.) Members of the disaffiliated chapter, led by McFarland, continued to exist as a separate entity under the corporate charter filed in 1946. (Id. ¶ 22.) The National Grange chartered a new California State Grange in 2014. (d. ¶ 23.) What resulted after the split, then, were two California entities: a newly chartered California State Grange (i.e., along with the National Grange, plaintiffs to this action) and a disaffiliated entity led by McFarland (i.e., defendants).

The National Grange initiated a lawsuit in the Sacramento Superior Court, Nat'l Grange of the Order of Patrons of Husbandry v. California State Grange, No. 34-cv-2002-120439 CU MC GDS (Sacramento Super. Ct.)(filed Oct. 1, 2012)("the State Action") seeking a declaration regarding the ownership of Grange property. The National Grange and the reorganized California State Grange succeeded in the State Action, although post-judgment proceedings continue to be ongoing.

In March 2014 the National Grange filed an action in this court against defendants for federal trademark infringement, trademark dilution, trademark counterfeiting, and false advertisement under the Lanham Act ("Grange I"). No. 2:14-cv-676 WBS DB (E.D. Cal.). On September 30, 2015, the court issued a final judgment and permanent injunction prohibiting the revoked entity's continued use of the "Grange" trademarks. (See Nat'l Grange of the Order of Patrons of Husbandry v. Cal. State Grange, No. 2:14-cv-676 WBS DAD, 2015 WL 5813681, at *2-*3 (E.D. Cal. Sept. 30, 2015), modified, No. 2:14-cv-676 WBS AC, 182 F.Supp.3d 1065, 2016 WL 1587193 (E.D. Cal. Apr. 20, 2016).) This holding has since been affirmed by the Ninth Circuit. See National Grange of Order of Patrons of Husbandry v. California State Grange, 715 Fed. Appx. 747 (9th Cir. 2018).

Plaintiffs argue that despite the Grange I ruling, defendants have continued to cause division and confusion among the California Granges by publicly referring to itself as "CSG" and "[f]ormerly the California State Grange." (Decl. of Ed Komski ("Komski Decl.") Ex. 2 (Docket No. 54-3).) Accordingly, plaintiffs filed this action in February 2016. (Compl. (Docket No. 1).) Plaintiffs asserted ten causes of action: (1) false designation of origin under the Lanham Act, 15 U.S.C. § 1125(a)(1)(A) ; (2) false advertisement under the Lanham Act, id. § 1125(a)(1)(B) ; (3) false advertisement under the California Business and Professional Code, Cal. Bus. & Prof. Code § 17500 ; (4) trademark infringement under the Lanham Act, 15 U.S.C. § 1114 ; (5) infringement of unregistered logo and trade dress under the Lanham Act, 15 U.S.C. § 1125(a) ; (6) copyright infringement under the Copyright Act, 17 U.S.C. § 106 ; (7) trade libel under California common law; (8) intentional interference with contractual relations under California common law; (9) trespass under California common law; and (10) conversion under California common law. (First Amended Complaint ("FAC")(Docket No. 75) at 38-51.)

Defendants moved to dismiss plaintiffs' amended Complaint in its entirety in August 2016. (Docket No. 77.) The court granted defendants' motion as to plaintiffs' infringement of unregistered logo and trade dress claim and intentional interference with contractual relations claim, and denied the motion in all other respects. (Nov. 15, 2016 Order at 23 (Docket No. 106).)

Defendants then moved for summary judgment on plaintiffs' remaining claims (Docket No. 138), which the court denied (Docket No. 153). Plaintiffs filed a cross-motion *1063for partial summary judgment on July 23, 2017. (Docket No. 142.) Plaintiffs' motion for partial summary judgment was withdrawn in order to provide defendants an opportunity for further discovery. (Docket No. 166.) Defendants have now completed that discovery, and both parties have again filed motions for summary judgment.

II. Legal Standard

Summary judgment is proper "if the movant shows 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).

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334 F. Supp. 3d 1057, Counsel Stack Legal Research, https://law.counselstack.com/opinion/natl-grange-of-the-order-of-patrons-of-husbandry-the-cal-state-grange-caed-2018.