Rainworks Ltd. v. Mill-Rose Co.

609 F. Supp. 2d 732, 2009 U.S. Dist. LEXIS 21303, 2009 WL 773531
CourtDistrict Court, N.D. Ohio
DecidedMarch 17, 2009
DocketCase 1:06CV1549
StatusPublished
Cited by1 cases

This text of 609 F. Supp. 2d 732 (Rainworks Ltd. v. Mill-Rose Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rainworks Ltd. v. Mill-Rose Co., 609 F. Supp. 2d 732, 2009 U.S. Dist. LEXIS 21303, 2009 WL 773531 (N.D. Ohio 2009).

Opinion

OPINION AND ORDER

CHRISTOPHER A. BOYKO, District Judge:

This matter comes before the Court upon Plaintiffs’ Joint Motion (ECF DKT # 105) for Partial Summary Judgment in their favor as to liability only against Defendants, AmeriSales, Inc., Gutterpiller, Inc., and The Mill-Rose Company, on Counts 1, 6, 7, 9, 13, and 15 of Plaintiffs’ Amended Complaint. For the following reasons, the motion is denied.

I. FACTUAL BACKGROUND

Plaintiff, Rainworks Limited (“Rain-works”), is a New Zealand corporation in the business of manufacturing and distributing gutter protection systems and rainwater harvesting components. One Rain-works product is a gutter protector known as the Hedgehog™. Plaintiff, Michael Laurence Herdman (“Herdman”), also known as Laurie Dee, is the managing director of Rainworks and a resident of New Zealand. Herdman is the inventor of the Hedgehog™ and the owner of United States Patent Number Des. 381,068 ('068) for the ornamental design for a gutter filter. Herd-man obtained the patent in 1997.

Defendant The Mill-Rose Company (“Mill-Rose”) is an Ohio corporation headquartered in Mentor, Ohio and the manufacturer of twisted-in-wire brushes which it sells throughout the United States.

Defendant AmeriSales, Inc. (“AmeriSales”) was an Illinois corporation that manufactured cleaning products and housewares. AmeriSales is no longer in operation.

Defendant Gutterpiller, Inc. (“GPI”) is an Illinois corporation, started in 2001, that markets and sells a gutter protector *735 called GutterPiller®, through a network of distributors and franchisees.

Defendant Wilmington International, Inc. (“Wilmington”) is an Illinois corporation that claims to own the GutterPiller® trademark.

Defendant Thomas J. Duffy (“Duffy”) is an Illinois resident who was president and sole shareholder of AmeriSales, is an officer and sole shareholder of GPI, and is an officer and shareholder of Wilmington.

In 1997, Rainworks approached Mill-Rose about making, marketing, and selling the Hedgehog™ in the United States. To assist Mill-Rose in evaluating the manufacturing, marketing and sales potential, Rainworks supplied Mill-Rose with confidential information and samples of its product. The parties entered into a Confidential Disclosure Agreement (Ex. # 2 to Amended Complaint, ECF DKT # 47).

On June 23, 2000, AmeriSales and Rain-works entered into a License Agreement for the manufacture and sale of gutter filters, gutter spades, and gutter brushes which AmeriSales was to sell under the GutterPiller® brand name. (Ex. #4 to Amended Complaint, ECF DKT #47). AmeriSales was granted an exclusive license to make and market the gutter products in North, Central and South America. AmeriSales agreed to pay royalties based upon net sales and to pay minimum royalties annually. Under no circumstances was AmeriSales permitted to market the products by means of the Internet. The Agreement provided further that Rain-works shall own all brand names, as well as enhancements and improvements to the products. Subject to termination due to breach or nonpayment of royalties, and in the absence of renewal, the Agreement would expire on December 31, 2006. A First Amendment of the License Agreement, extending the territory to Europe, was executed by Rainworks and AmeriSales on February 22, 2001. In both documents, the minimum royalties specified did not impose liability upon AmeriSales to pay such amounts. Rainworks’ recourse was either to remove Europe from the designated marketing territory or terminate the License Agreement. During the term of the License Agreement, and for one year after termination, AmeriSales was prohibited from manufacturing or marketing, or aiding or abetting any other person manufacturing or marketing, any directly competing products.

Rainworks sent AmeriSales the ninety-day notice of termination of the License Agreement for failure to pay minimum royalties on April 30, 2002. Although negotiations continued into March of 2003, no new agreements were signed by the parties.

In their Amended Complaint, Plaintiffs assert fifteen claims for relief:

1. Patent Infringement by GPI, Duffy, AmeriSales, Wilmington, and Mill-Rose

2. Inducement of Patent Infringement by Duffy

3. Trademark Infringement under 15 U.S.C. §§ 1114 by GPI, Duffy, Wilmington, and Mill-Rose

4. Federal False Designation of Origin by GPI, Duffy, Wilmington, and Mill-Rose

5. State Common-Law Trademark Infringement by GPI, Duffy, Wilmington, and Mill-Rose

6. Lanham Act False Advertising by GPI, Duffy, Wilmington, and Mill-Rose

7. State Deceptive Trade Practices by GPI, Duffy, Wilmington, and Mill-Rose

8. Breach of Contract by Mill-Rose
9. Breach of Contract by AmeriSales

*736 10. Tortious Interference with Prospective Economic Advantage by GPI, Duffy, Wilmington, and AmeriSales

11. Tortious Interference with Contract by GPI, Duffy, AmeriSales, and Wilmington

12. Tortious Interference with Contract by Mill-Rose
13. False Marking — All Defendants
14. Piercing Corporate Veil — Duffy and GPI

15. Unfair Competition by GPI, Duffy, AmeriSales, Wilmington, and Mill-Rose

Each party has filed a motion for partial or total summary judgment, and briefing has been completed. On March 9, 2009, Plaintiffs and Defendant AmeriSales filed a Stipulation of Dismissal of the claims and counterclaims between them; therefore, Plaintiffs’ Motion for Partial Summary Judgment as against AmeriSales, and Defendant AmeriSales’ Motion for Summary Judgment are denied as moot.

II. LAW AND ANALYSIS

Standard of Review

Summary judgment is proper “if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c); accord Int’l Union v. Cummins, Inc., 434 F.3d 478, 483 (6th Cir.2006); Turner v. City of Taylor, 412 F.3d 629, 637 (6th Cir.2005). The initial burden to demonstrate the absence of a genuine issue of material fact rests with the moving party. Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

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Bluebook (online)
609 F. Supp. 2d 732, 2009 U.S. Dist. LEXIS 21303, 2009 WL 773531, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rainworks-ltd-v-mill-rose-co-ohnd-2009.