PRIME HOOKAH, INC. v. MK DISTRIBUTORS INC.

CourtDistrict Court, D. New Jersey
DecidedFebruary 5, 2020
Docket3:19-cv-07283
StatusUnknown

This text of PRIME HOOKAH, INC. v. MK DISTRIBUTORS INC. (PRIME HOOKAH, INC. v. MK DISTRIBUTORS INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PRIME HOOKAH, INC. v. MK DISTRIBUTORS INC., (D.N.J. 2020).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY ____ : Civil Action No. 19-7283 (FLW)(TJB) PRIME HOOKAH, INC., : : OPINION Plaintiff, : : v. : : MK DISTRIBUTORS, INC., : URV ASHIBEN PATEL, KING GT, INC; : RASHID AZEEM; : CHAUDHARY QASIM LATIF; : TANVEER SYED SHAH : Defendants. : ___________________________________ : WOLFSON, United States District Chief Judge: This matter comes before the Court on a Motion by defendants MK Distributors, Inc. (“MK Distributors”); King Gt, Inc. (“King GT”); Rashid Azeem (“Azeem”); Chaudhary Qasim Latif (“Latif”); Urv Ashiben Patel (“Patel”); and Tanveer Syed Shah (“Shah”) (collectively, “Defendants”), pursuant to Federal Rules of Civil Procedure 12(b)(2), 12(b)(3), and 12(b)(6), to dismiss the action initiated by Plaintiff Prime Hookah, Inc. (“Plaintiff” or “Prime Hookah”), or, in the alternative, transfer the case to the United States District Court for the District of Massachusetts. For the following reasons, Defendants’ motion to transfer is granted pursuant to 28 U.S.C. § 1404(a) and this matter is transferred to the District of Massachusetts. I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY In addressing Defendants’ Motion to Dismiss, this Court must accept the allegations from Plaintiff’s Complaint as true. See Toys “R” Us, Inc. v. Step Two, S.A., 318 F.3d 446, 457 (3d Cir. 2003); Dayhoff, Inc. v. H.J. Heinz Co., 86 F.3d 1287, 1302 (3d Cir. 1996). Thus, the facts recited below are taken from the Complaint and do not represent this Court’s factual findings. The instant case involves federal trademark infringement and unfair competition claims. Plaintiff, Prime Hookah, is a New Jersey corporation which sells hookah-related charcoal products throughout the United States. Compl. ¶19. Prime Hookah is the owner of the “DUD” Trademark, serial number 87498220, registered with the United State patent and Trademark Office on June

20, 2017. Id. at ¶¶19, 21-22. Plaintiff alleges that Defendants sell counterfeit DUD products via their online website, and at tradeshows in New Jersey. Id. ¶¶13-14,17. In May 2018, Dani Jajati (“Jajati”), a Prime Hookah representative, and Eli Robin (“Robin”), attended the Champs Trade Show in New Jersey and allegedly discovered defendant MK Distributors, a Massachusetts corporation, selling counterfeit DUD products.1 See ECF No 44-2, Certification of Dani Jajati (“Jajati Cert.”), ¶¶2-4; ECF No. 44-3, Certification of Eli Robin (“Robin Cert”), ¶2. Jajati informed the MK Distributors representatives that he owned the trademark to the DUD products, and the representatives purportedly represented that MK Distributors would cease selling the infringing products, and immediately left the tradeshow. Jajati Cert. ¶7-8.

Nonetheless, however, MK Distributors allegedly continued to sell counterfeit DUD products on their website. Compl. ¶25. As a result, in August 2018 and October 2018, Plaintiff

1 This incident is not specifically described in Plaintiff’s Complaint, which merely alleges that “Defendant MK during their course of business have attended numerous tradeshows in NJ including the Champs Trade show.” Compl. ¶17. In opposition to the instant Motion, Plaintiff proffered declarations from two witnesses who allegedly observed MK Distributors selling the infringing products at the Champs Trade Show. See generally Jajati Cert.; Robin Cert. In response, Defendants submit a certification from Urvashiben Patel, the owner and president of MK Distributors. See generally ECF No. 41-4, Declaration Urv Ashiben Patel (“Patel Decl”). Patel avers that neither he nor any other representatives for MK Distributors attended any tradeshows in New Jersey, including the Champs Trade show. Id. at ¶ 20. The Court does not resolve that factual dispute on the instant motion to dismiss and takes Plaintiff’s version of events as true. Aetna, Inc. v. Jones, No. 06-2245, 2007 WL 266423, at *2 (E.D. Pa. Jan. 24, 2007)(“When reviewing a motion to dismiss for improper venue, a court must likewise accept the plaintiff's allegations as true and must draw all reasonable inferences and resolve all factual disputes in the plaintiff's favor.”). mailed letters to MK Distributors requesting that the entity cease and desist all advertising and selling of DUD products. Id. at ¶¶26-30. Plaintiff contacted Patel, MK Distributor’s president and owner, who allegedly acknowledged receipt of the letters, and claimed that MK Distributors had returned its entire inventory of the counterfeit products to King GT. Id. However, Patel

purportedly later acknowledged to Plaintiff that he had not returned MK Distributors’ outstanding inventory, but, in fact, sold it. Id. at ¶31. Additionally, Plaintiff alleges that in Fall 2019, Robin attempted to broker a sale of the allegedly infringing DUD products from MK Distributors to ship to New Jersey. Robin Cert. at ¶8. Robin avers that MK Distributors expressed a willingness to sell the infringing products to him in New Jersey, but was concerned that they might be damaged during the shipping process. Id. The sale was never effectuated.

Plaintiff alleges that MK Distributors purchased the allegedly infringing products from defendant King GT, another Massachusetts-based entity. Id. at ¶¶25, 6. Defendant Azeem is the registered agent for King GT, and allegedly operates the business; Azeem is also a Massachusetts resident. Id. at ¶6. Defendants Latif and Shah are, respectively, the president and vice-president of King GT, and are also Massachusetts residents. ECF No. 41-3, Declaration of Chaudhary Qasim Latif (“Latif Decl.”), ¶1; ECF No. 41-5, Declaration of Tanveer Syed Shah (“Shah Decl.”), ¶1.

Allegedly, King GT advertised, and continues to advertise, DUD products on the company’s website. Compl. at ¶32. Furthermore, Plaintiff alleges that counterfeit DUD products were discovered at a “Smokeez Smoke Shop” in Rhode Island, and Plaintiff suspects that Defendants supplied those products as well.2 Jajati Decl. at 1¶6.; Pl. Br. at 6.

Subsequently, on February 28, 2019, Plaintiff filed the instant Complaint alleging violations of the Lanham Act, 15 U.S.C. § 1051, as well as violations of New Jersey common law of trademark infringement and unfair competition . Compl. ¶¶ 37-92. Defendants filed the instant motion to dismiss, or in the alternative, to transfer. Plaintiff opposes the motion and also seeks a preliminary injunction restraining Defendants from engaging in the sale of the allegedly infringing products. II. DISCUSSION Defendants move to dismiss this matter for, inter alia, lack of personal jurisdiction and

improper venue, or alternatively, seek transfer of venue to the District of Massachusetts. Def. Br. at 3. While “[t]he question of personal jurisdiction, which goes to the court’s power to exercise control over the parties, is typically decided in advance of venue . . . a court may reverse the normal order of considering personal jurisdiction and venue.” Leroy v. Great W. United Corp., 443 U.S. 173, 180 (1979). Accordingly, the Court addresses the venue issue first, and because Defendants have demonstrated that a transfer is appropriate under Section 1404(a), the Court need not reach the question of whether Defendants are subject to the exercise of personal jurisdiction.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Continental Grain Co. v. Barge FBL-585
364 U.S. 19 (Supreme Court, 1960)
Van Dusen v. Barrack
376 U.S. 612 (Supreme Court, 1964)
Leroy v. Great Western United Corp.
443 U.S. 173 (Supreme Court, 1979)
Piper Aircraft Co. v. Reyno
454 U.S. 235 (Supreme Court, 1982)
Dayhoff Inc. v. H.J. Heinz Co.
86 F.3d 1287 (Third Circuit, 1996)
Newcomb v. Daniels, Saltz, Mongeluzzi & Barrett, Ltd.
847 F. Supp. 1244 (D. New Jersey, 1994)
Datasouth Computer Corp. v. Three Dimensional Technologies, Inc.
719 F. Supp. 446 (W.D. North Carolina, 1989)
Law Bulletin Publishing, Co. v. LRP Publications, Inc.
992 F. Supp. 1014 (N.D. Illinois, 1998)
Ricoh Co., Ltd. v. Honeywell, Inc.
817 F. Supp. 473 (D. New Jersey, 1993)
National Property Investors VIII v. Shell Oil Co.
917 F. Supp. 324 (D. New Jersey, 1995)
Liggett Group Inc. v. R.J. Reynolds Tobacco Co.
102 F. Supp. 2d 518 (D. New Jersey, 2000)
Lawrence v. Xerox Corp.
56 F. Supp. 2d 442 (D. New Jersey, 1999)
Tradimpex Egypt Co. v. Biomune Co.
777 F. Supp. 2d 802 (D. Delaware, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
PRIME HOOKAH, INC. v. MK DISTRIBUTORS INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/prime-hookah-inc-v-mk-distributors-inc-njd-2020.