Northern Star Industries, Inc. v. Douglas Dynamics LLC

848 F. Supp. 2d 934, 2012 WL 252846, 2012 U.S. Dist. LEXIS 8943
CourtDistrict Court, E.D. Wisconsin
DecidedJanuary 26, 2012
DocketCase No. 11-C-1103
StatusPublished
Cited by1 cases

This text of 848 F. Supp. 2d 934 (Northern Star Industries, Inc. v. Douglas Dynamics LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northern Star Industries, Inc. v. Douglas Dynamics LLC, 848 F. Supp. 2d 934, 2012 WL 252846, 2012 U.S. Dist. LEXIS 8943 (E.D. Wis. 2012).

Opinion

DECISION AND ORDER

RUDOLPH T. RANDA, District Judge.

On January 5, 2012, the Court held an evidentiary hearing on the preliminary.injunction motion filed by the Plaintiff, Northern Star Industries, Inc. (“Northern Star”). Pursuant to Rule 65 of the Federal Rules of Civil Procedure, Northern Star seeks a preliminary injunction enjoining the Defendant, Douglas Dynamics LLC (“Dynamics”), its direct competitor in the snow plow market, from engaging in false and misleading advertising in violation of the Lanham Act, 15 U.S.C. § 1125(a),1 and requiring corrective advertising.

Having considered the testimony and evidence presented at that hearing as well as the parties’ submissions, including their post hearing briefs, the Court makes the following findings of fact and conclusions of law pursuant to Rule 52(a)(2) of the Federal Rules of Civil Procedure.

FINDINGS OF FACT

Northern Star is a Michigan corporation with its principal place of business in Iron Mountain, Michigan. Northern Star designs, manufactures, and sells snow plows under the “Boss” brand. For more than 20 years Northern Star has sold snow plows under the “Boss” brand name. The Boss reputation in the marketplace is one of durability and reliability, service, quality construction, and safety. The brand caters to professional snowplow contractors who are savvy with respect to product information.

[938]*938Dynamics is a limited liability company organized under the laws of Delaware with its principal place of business in Milwaukee, Wisconsin. Dynamics manufactures and sells snow plows under the “Fisher” and “Western” brands. Dynamics’ “Fisher” and “Western” brand snow plows are direct competitors with the “Boss” brand.

Both companies manufacture trip-blade and trip-edge plows. “Trip-blade” designs rely on the entire blade of the plow moving in the direction of the trip. “Trip-edge” designs rely on the edge of the blade, but not the blade as a whole, moving backwards to facilitate the trip. Each type has its advantages and disadvantages. (See Ex. 12.) This action was spurred by a comparative advertising campaign that Dynamics embarked upon that involved print advertisements, Fisher and Western websites, videos and social media such as Facebook.

Mark Klossner (“Klossner”), Boss’s marketing director, characterized Dynamics’ advertising campaign as “a fear campaign which is tied to safety,” stating that “there is no more powerful motivator than a fear campaign.” (Tr. 81.) Sandra Cashman (“Cashman”), the chief executive officer of Epic Creative (“Epic”) an advertising agency in West Bend, Wisconsin and the account manager for Dynamics, indicated that safety is a material part of the consumer purchasing decision and that creating doubts about the safety of a company’s product, damages the brand in way that may be impossible to quantify. (Tr. 198.)

To understand the nature of the campaign, a synopsis of how the Boss v-blade operates is necessary. The Boss v-blade is hinged in the middle. The portions to the right and left of the hinge are referred to as wings. A hydraulic cylinder mounted on the back of each wing allows the wing to be positioned independently. The two hydraulic cylinders have the ability to push the blade forward from a “V” position where the wings are back like a fighter jet, to a straight position when the entire blade is parallel to the front portion to the vehicle, and to the scoop position when the wings are both moved full forward. The “V” position is effective for breaking through deep heavy snow. In the scoop position, the blade can push snow without snow rolling over the ends of the snowplow.

Snowplowing, a seasonal activity, is often done in the dark and in bad weather with poor visibility. In addition, snow that is being plowed can hide low profile, hard immobile objects, such as manhole covers and ice-shelves. Since the 1920’s, the snow plow industry has dealt with the hidden immobile object problem with technology intended to cause snowplow blades to “trip” over such objects.

According to Northern Star, “tripping” causes the blade, or the edge of the blade, to rotate backwards so that the plow can clear the object. According to Dynamics, during “tripping” “the edge of the plow rotates about the same axis as the trip function.” (Tr. 158 (Barker).) Stated somewhat differently by Cashman, “tripping is when the blade folds forward to get over an obstacle.” (Tr. 192.) Cashman testified that when a v-blade is in the V-mode, the two halves of the blade cannot fold forward so that the entire v-blade has to tilt forward and lift over the object. (See id.)

Based on its market research and subsequent research, Dynamics became convinced that safety was a key concern of snow plow dealers, operators, and customers. Believing that the trip-edge design is superior from a performance standpoint and safer than the trip-blade design, Dynamics began to explore ways to make use of those characteristics in its promotional efforts.

At the request of Dynamics, Epic developed an advertising campaign which in-[939]*939eludes videos involving a feature-by-feature comparison of the competing v-plows that is intended to favor Fisher and Western and disfavor Boss. In preparation for the video, Dynamics built a test track in Epic’s parking lot. Dynamics’ Supervisor of Technical Services, Chad Thomas Barker (“Barker”), inspected the test track to make sure that it met Dynamics specifications. To represent an immoveable object, steel pins that were 12 inches long and about one and a half inches in diameter were inserted into two steel sleeves that were cast into a concrete foundation and placed far enough apart so that each wing of a v-plow configuration would hit one pin. About three inches of the pin were exposed above the asphalt surface. No springs were inserted into the sleeve.

The tests for Dynamics’ comparison videos were performed on June 13, 2011. Barker served as the test driver. Barker’s prior experience includes performing about 100 obstacle tests involving snow plows, and 13 years of experience as a race car driver both locally and regionally.

Standard Boss Power-V XT, the Fisher XtremeV, and Western MVP Plus snow plows were used in the videos. Three trucks were used in the videos. The same type of truck was not used for the Fisher or Western impact and the Boss impact.2 Different types of trucks may have different types of suspensions and different parts.

The tests began at five miles per hour and increased at about five mile per hour increments. The tests were done at five, ten and 15 miles per hour. An initial plan to perform the tests at 20 and 25-mile per hour speeds were not carried out because Barker did not want to sustain the bodily impact at those speeds.

Barker measured the speed of the truck when he was performing the tests by looking at the needle of the speedometer. Barker is aware that there is a margin of error for speedometers but he does not know what it is. During the tests, Barker watched for the pins and watched the speedometer.

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Bluebook (online)
848 F. Supp. 2d 934, 2012 WL 252846, 2012 U.S. Dist. LEXIS 8943, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-star-industries-inc-v-douglas-dynamics-llc-wied-2012.