Nordictrack, Inc. v. Consumer Direct, Inc.

158 F.R.D. 415, 1994 U.S. Dist. LEXIS 19470, 1994 WL 583160
CourtDistrict Court, D. Minnesota
DecidedJuly 5, 1994
DocketCiv. No. 4-91-429
StatusPublished
Cited by1 cases

This text of 158 F.R.D. 415 (Nordictrack, Inc. v. Consumer Direct, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nordictrack, Inc. v. Consumer Direct, Inc., 158 F.R.D. 415, 1994 U.S. Dist. LEXIS 19470, 1994 WL 583160 (mnd 1994).

Opinion

ORDER

ERICKSON, United States Magistrate Judge.

I. Introduction

This matter came before the undersigned United States Magistrate Judge, pursuant to the consent of the parties as authorized by Title 28 U.S.C. § 636(c)(3), upon a variety of Motions in Limine by both the Plaintiffs and the Defendants.

A Hearing on the Motions was conducted on February 1,1994, at which time the Plaintiff appeared by Charles D. Reite and Thomas L. Skorczeski, Esqs., and the Defendants appeared by John M. Mason and J. Thomas Vitt, Esqs.1

For reasons which follow, the Motions of the parties are granted in part and denied in part.

II. Factual and Procedural Background

This action was commenced on June 5, 1991, in order to contest a number of assert-edly false and misleading advertisements that had been publicized by the Defendants in the marketing of its “Fit One” exercise machine and which, purportedly, violated the provisions of the Lanham Act, Title 15 U.S.C. § 1125(a). The Plaintiff also has alleged, as [418]*418supplemental claims of liability, violations of the Minnesota Uniform Deceptive Trade Practices Act, Minn.Stat. §§ 325D43-48, of the Minnesota Consumer Fraud Act, Minn. Stat. § 325F. 67, and of the Minnesota common law of unfair competition.

By its Complaint, the Plaintiff seeks preliminary and permanent injunctive relief against the Defendants, which would prevent them from continuing their allegedly false advertising campaign, and which would obligate them to publish corrective advertising so as “to repair the damage to Plaintiff,” Complaint, at 15, together with an accounting for damages, and a declaration that the Defendants’ actions were willful, thereby warranting an award of attorneys’ fees. Id. at 16.2

On June 11,1991, the Plaintiff moved for a Temporary Restraining Order (“TRO”), in order to enjoin the Defendants from publishing or disseminating any more false or deceptive advertising. On June 17,1991, United States Magistrate Judge Franklin L. Noel recommended that the TRO be granted. The Defendants filed Objections to the issuance of a TRO, as had been recommended by the Magistrate Judge, and requested expedited discovery and a Hearing on the Plaintiffs requested preliminary injunction.

On June 26, 1991, the District Court, the Honorable Harry H. MacLaughlin presiding, conducted a Hearing on the Defendants’ Objections. On that same date, the Court issued an Order which rejected the Recommendation of the Magistrate Judge3 and which denied the Motion for a TRO. The Court also advised that a Hearing on the requested Preliminary Injunction would be subsequently scheduled.

On September 9, 1991, the Plaintiff filed a Motion for a Preliminary Injunction, which sought identical relief to that which had been pursued in the Motion for a TRO. On October 1 through 3 of 1991, an Injunction Hearing was held before the District Court, at which time the Court consolidated the Injunction Hearing with the trial on the merits of those issues then in contest. The scope of the Injunction Hearing — particularly whether the conduct of that Hearing should preclude the Plaintiffs pursuit of those claims which were, or which could have been, litigated at the time of that Hearing — is currently in dispute.

On October 18, 1991, the Court made oral Findings of Fact and announced its Order which, in part, “preliminarily and permanently enjoined” the Defendants from comparing the Fit One model to the NordieTrack Pro model without inclusion of a footnote in future written advertisements that would inform consumers that NordieTrack models, other than the Pro model, were available at lower prices.4 The Plaintiff had argued, and the District Court agreed, that the Defendants’ advertisements unfairly portrayed the pricing of NordieTrack exercise machines.

On June 11, 1992, Magistrate Judge Noel issued a Pretrial Schedule which directed that discovery would conclude on March 1, 1993, that all dispositive Motions should be filed before May 1, 1993, and that the ease would be ready for trial by no earlier than July 1, 1993.

On November 10, 1992, the Plaintiff filed Motions for Summary Judgment and for Damages, and to Dismiss the Defendants’ Counterclaim. On that same date, the Defendants filed a Motion for Partial Summary Judgment, which sought a permanent injunction that would enjoin the Plaintiff from making the following advertising claims:

[419]*4191) That 7 out of 10 NordicTrack owners continue to use their machines at least three times a week five years after purchase.

2) That 7 out of 10 NordicTrack owners use their machines more than three times a week five years after purchase.

3) That 69% or more of NordicTrack owners use their machines an average of 3.5 times a week with an average length of 25 minutes five years after purchase.

On March 2, 1993, the District Court denied the Plaintiffs Motion to Dismiss the Defendants’ Counterclaim, rejecting the Plaintiffs defenses of unclean hands and in pari delicto, as well as its theory that any alleged false claims of NordicTrack would accrue to the Defendants’ benefit due to their comparison advertising. The Court also granted the Defendants’ Motion for Partial Summary Judgment on their Counterclaim. Finally, the Court denied the Plaintiffs Motion for Damages, holding that, although the Plaintiff was entitled to some award of damages, it had not yet developed a sufficient factual record that would permit an entry of a damage award.

On June 17, 1993, Magistrate Judge Noel issued an Order which resolved the remainder of the pending pretrial disputes. The Magistrate Judge granted the Plaintiffs Motion for supplementation of the pleadings, and allowed the Plaintiff to seek further in-junctive relief by alleging continued violations of the Lanham Act in printed advertisements and an infomercial5 which the Defendants had circulated after the Court’s Injunction of October 18, 1991. Magistrate Judge Noel also granted several of the Plaintiffs Motions to compel discovery, including discovery that was relevant to the Plaintiffs supplemental claims.6 Finally, the Magistrate Judge denied the Plaintiffs Motion for a Protective Order, which would have shielded the contents of the Plaintiffs annual business plans and weekly media reports, and granted the Defendants’ Motion to compel the production of these documents, to compel the production of documents related to the Plaintiffs continued use claims, and to supplement earlier discovery requests.

Currently pending before the Court are the following Motions:

1. The Plaintiffs Motion to extend discovery for the purpose of deposing certain witnesses that have been newly-identified by the Defendants.

2. The Plaintiffs Motion for a Rule 26(c) Protective Order which would foreclose counsel for the Defendants from representing another, but different, competitor of NordicTrack.

3. The Plaintiffs Motion for supplementation of its pleadings.

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Bluebook (online)
158 F.R.D. 415, 1994 U.S. Dist. LEXIS 19470, 1994 WL 583160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nordictrack-inc-v-consumer-direct-inc-mnd-1994.