Rainforest Café, Inc. v. Amazon, Inc.

86 F. Supp. 2d 886, 1999 U.S. Dist. LEXIS 22099, 1999 WL 1061827
CourtDistrict Court, D. Minnesota
DecidedSeptember 30, 1999
Docket97-459 (MJD/AJB)
StatusPublished
Cited by12 cases

This text of 86 F. Supp. 2d 886 (Rainforest Café, Inc. v. Amazon, 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
Rainforest Café, Inc. v. Amazon, Inc., 86 F. Supp. 2d 886, 1999 U.S. Dist. LEXIS 22099, 1999 WL 1061827 (mnd 1999).

Opinion

MEMORANDUM AND ORDER

DAVIS, District Judge.

BACKGROUND

I. The Amazon Bar & Grill

In 1991, Anthony Colagreco conceived of the concept for the Amazon Bar & Grill and began taking practical steps necessary to develop such concept. The first Amazon Bar & Grill opened in Santa Monica, California on October 31, 1992 as a small restaurant, designed by Franco Vecchio, on the first floor of a large office building. The grand opening was televised nationally on the “E Channel,” and additional television coverage of the restaurant by “Entertainment Tonight” followed. The grand opening of a second Amazon Bar & Grill, designed by Chris Zurga, took place on June 19, 1993 on a commercial street in the Sherman Oaks area of Los Angeles and was nationally televised on the “Cable News Network.” To create the rainforest ambiance, the Amazon Bar & Grill’s decor included the following features: a fiber-optic star system, including shooting stars, on a domed ceiling; jungle murals with cartoon-like animals; artificial banyan trees forming a branch canopy overhead; waterfalls; a “tree hut” for live entertainment; simulated earth and rock formations; anthropological artifacts; silk flowers; jungle trees; foliage hanging from the ceiling; jungle sounds; a concrete floor; a dolphin on a pedestal; a small retail cabinet — approximately six feet by two feet — containing artifact-like items and clothes with the “Amazon” logo; an aquarium with exotic fish; and a menu with items reflecting the rainforest theme. Both restaurants had small floor plans and featured popular live adult musical acts in the evenings, thereby giving the restaurants a nightclub atmosphere and catering to an adult crowd. The Amazon Bar & Grill subsequently closed its Santa Monica restaurant in February 1997 and sold its Sherman Oaks restaurant to Chamber Gas, Inc., maintaining a license agreement with Chamber Gas, Inc. for use of the trade dress created and owned by the Amazon Bar & Grill.

II. The Rainforest Cafe

The Rainforest Cafe developed from the idea of a rainforest-themed restaurant, conceived in approximately 1979 by Steven Schussler. By 1980, Schussler had registered the name “The Rainforest Cafe” with the Minnesota Secretary of State. Thereafter, Schussler began to transform his home into a prototype for the Rainforest Cafe and with a colleague began to develop a menu for the proposed restaurant. In 1987, Schussler organized the “Rescue the Rainforest Days” event at a Minneapolis nightclub in which he featured a rainforest-themed outdoor cafe, rainforest-related menu items, and a dining room decorated with rainforest foliage and waterfalls. In 1992, an investor decided to support Schussler’s Rainforest Cafe concept.

In October 6, 1993, Schussler and Gregory Rothweiler and Bill Hickey of Shea Architects, Inc. (“Shea”) met to discuss, among other issues related to the Rainforest Cafe’s development, an upcoming “exploration trip” to the Amazon Bar & Grill in Los Angeles, during which they intended to “learn things,” including “flooring, etc.” Esades Aff., Exs. 17, 19. A second meeting between Schussler and Shea took place on October 12, 1993, during which “research trips” to numerous restaurants were discussed, including the trip to the Amazon Bar & Grill in Los Angeles. Es-ades Aff., Ex. 22. The “topics to be covered” during said trips included “product development, retail merchandising, and design issues.” Id. On October 22, 1993, Schussler traveled to Los Angeles and visited the Amazon Bar & Grill. Esades Aff., *891 Ex. 9, Schussler Dep. at 134-135. Cola-greco testifies that during Schussler’s visit to the Amazon Bar & Grill, he carefully looked at the decor, including “[t]he trees, the foliage, the waterfalls, the bar itself, the walls,” inquired as to the rainforest sounds, and, in general, “bombarded” Co-lagreco with questions regarding the restaurant. Esades Aff., Ex. 3, Colagreco Dep. at 305-307. During the visit, Schus-sler also asked Steve Cuccio, also of the Amazon Bar & Grill, for the name of the muralist who painted the jungle scene on the side of the building in which the Amazon Bar & Grill was located, and Cuccio informed Schussler that said artist was Chris Zurga. Esades Aff., Ex. 9, Schus-sler Dep. at 171-72. Following his visit to the Amazon Bar & Grill in Los Angeles, Schussler contacted Zurga and paid for him to fly to Minneapolis “to see if he was capable of helping us” and to “design and provide trees for the decor.” Id. at 177-78; Esades Aff., Ex. 46. In November 1993, as part of their “research tour” for Schussler, representatives from Shea Architects visited Amazon Bar & Grill in Los Angeles and shared their research with Zurga. Esades Aff., Schussler Dep. at 175-76.

III. Proposed Expansion of the Amazon Bar & Grill

In approximately November 1993, Cola-greco met with Lawrence D’Amato to discuss his interest in opening an Amazon Bar & Grill in Orange County, California and informed him that he was looking for investors for the project. Esades Aff, Ex. 4, D’Amato Dep. at 13-14. D’Amato testifies that he began “looking around” and “checking out demographics” in Orange County to determine an appropriate location for such a restaurant and that he provided Bill Sylvestri, another potential investor, and Colagreco with the names of real estate brokers in the area. Id. at 33-37. In early 1996, D’Amato learned that the Rainforest Cafe had signed a lease at South Coast Plaza in Orange County and thereupon expressed concerns to Colagre-co regarding investing “in something that had a similar concept so close.” Id. at 72. D’Amato testifies that he stated, “At this point, you know, I ... have to question my ... investment dollars. I liked it better when it was unique and there was nothing else in the area like it.” Id. at 73. D’Am-ato states that an article in “Investors Business Daily” regarding the opening of the Rainforest Cafe in Orange county “was pretty much the solidification that I wasn’t going to invest” in an Amazon Bar & Grill to be opened nearby. Id. at 72-73.

Similarly, in December 1994, Colagreco met with four investors to discuss opening an Amazon Bar & Grill restaurant in New York City. Esades Aff., Ex. 8, Lathrop Dep. at 12-15. Robert Lathrop, one of the four investors, testifies that the investors “were interested in furthering the discussion,” as “the Amazon concept would be quite unique in New York City.” Esades Aff., Ex. 8, Lathrop Dep. at 29. Lathrop testifies that some time in 1995, the four investors became aware that the Rainforest Cafe — “a similar concept” — was coming to Long Island. Id. at 31-36. Lathrop states that “when I was aware that there was a similar club coming into Long Island, the whole idea was to be ... quite different ... I ... wasn’t comfortable anymore, and I pulled out.” Id. at 31-36.

In 1996, Lanthrop and another investor, Joe Corallo, were still interested in the Amazon Bar & Grill and discussed with Colagreco the possibility of investing in a New Jersey location. Id. at 58-59. Again, however, Lanthrop decided not to invest in the Amazon Bar &

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Bluebook (online)
86 F. Supp. 2d 886, 1999 U.S. Dist. LEXIS 22099, 1999 WL 1061827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rainforest-cafe-inc-v-amazon-inc-mnd-1999.