Rosehoff, Ltd. v. CataClean Americas, LLC

CourtDistrict Court, W.D. New York
DecidedNovember 28, 2022
Docket1:21-cv-00399
StatusUnknown

This text of Rosehoff, Ltd. v. CataClean Americas, LLC (Rosehoff, Ltd. v. CataClean Americas, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rosehoff, Ltd. v. CataClean Americas, LLC, (W.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NEW YORK

ROSEHOFF, LTD.,

Plaintiff, 21-CV-399-LJV-LGF v. DECISION & ORDER

CATACLEAN AMERICAS, LLC, et al.,

Defendants.

This case is the latest skirmish in a prolonged dispute between Rosehoff, Ltd. (“Rosehoff”), a limited liability company based in the United Kingdom, and various United States-based companies and individuals who are purportedly infringing Rosehoff’s intellectual property rights. Rosehoff alleges that the defendants— Cataclean Americas, LLC (“Cataclean Americas”); Truscott Terrace Holdings, LLC; Truscott Terrace Holdings Group, LLC; Truscott Terrace International Holdings Group, LLC; and Gordon and Gregory Gannon—“repeated[ly], willful[ly], and egregious[ly] misappropriat[ed]” and unlawfully used “Rosehoff’s intellectual property associated with the Cataclean fuel and exhaust system cleaner.” Docket Item 4 at ¶¶ 2-8 (capitalization removed). On March 17, 2021, Rosehoff filed a complaint asserting claims under the Lanham Act, the New York General Business Law, and New York State common law, and about a month later it filed an amended complaint. Docket Items 1, 4. On June 17, 2021, the defendants answered the amended complaint, Docket Item 5, and Cataclean Americas moved to dismiss about two months later, Docket Item 11. Rosehoff responded to Cataclean Americas’ motion to dismiss and cross-moved for summary judgment on September 13, 2021. Docket Item 17. Cataclean Americas replied in further support of its motion to dismiss on September 27, 2021, Docket Item 18, and all defendants responded to Rosehoff’s motion for summary judgment on November 22, 2021, Docket Item 22. Rosehoff replied in further support of its motion for summary judgment on December 7, 2021. Docket Item 24.

For the reasons that follow, Cataclean Americas’ and Rosehoff’s motions are both denied. FACTUAL BACKGROUND1

According to Rosehoff, Rosehoff and “its wholly-owned subsidiary, System Products U.K. Ltd. (“Systems Products”), are the exclusive owners of [] intellectual property associated with [] Cataclean,” a “chemical compound fuel and exhaust system cleaner.” Docket Item 17-10 at ¶¶ 2-3. Cataclean “cleans automobile catalytic converters” and therefore “obviat[es] the need for expensive repairs.” Id. at ¶ 2. Rosehoff owns trademark registrations for the Cataclean mark as well as domestic and international patents for the Cataclean chemical compound. Id. at ¶¶ 4-5; Docket Item 22 at 1.

In 2008, Rosehoff’s principals and defendants Gordon and Gregory Gannon formed Cataclean Americas. Docket Item 17-10 at ¶ 7; Docket Item 22 at 4. Cataclean

1 The following facts, viewed in the light most favorable to the defendants on the plaintiff’s motion for summary judgment, see Collazo v. Pagano, 656 F.3d 131, 134 (2d Cir. 2011), are taken from the parties’ statements of material facts, responses, and attached exhibits. See Docket Items 17-10, 22, 24-2. Because the Court denies Cataclean Americas’ motion to dismiss based on defects in the motion, see infra at 7- 10, the Court does not recite the facts alleged in the amended complaint in the light most favorable to the plaintiff as it ordinarily would in deciding a motion to dismiss, see Trs. of Upstate N.Y. Eng’rs Pension Fund v. Ivy Asset Mgmt., 843 F.3d 561, 566 (2d Cir. 2016). Americas and Systems Products then executed a license agreement in July 2008. Docket Item 17-10 at ¶ 8; Docket Item 22 at 4. Although the parties contest the terms and effect of that license agreement, both sides agree that it permitted Cataclean Americas to sell Cataclean in the United States. See Docket Item 17-10 at ¶ 8; Docket

Item 22 at 2. The source of the parties’ dispute lies in certain conflicting terms in the license agreement. More specifically, the license agreement apparently provides both that the agreement may be terminated and that the agreement is irrevocable. Clause 4.2.5 provides that “[System Products] may terminate this agreement” for a breach by Cataclean Americas; along the same lines, under clause 18, “[t]he contractual relationship can be dissolved prior to the expiry of the Term by either party without notice of termination if the other party materially breaches any term or provision of th[e] agreement or if compelling grounds are present.” See Docket Item 17-5 at 8, 19; see also id. at 19 (listing five such compelling grounds). On the other hand, the agreement

also explicitly says that it provides an “exclusive irrevocable licence [sic].” See id. at 5. The agreement does not explain how to reconcile those provisions. The relationship between System Products and Cataclean Americas quickly soured, and Systems Products eventually invoked clauses 4.2.5 and 18 to purportedly terminate the agreement in 2011. Docket Item 17-10 at ¶¶ 11-12. Rosehoff maintains that the license agreement “was both revocable and non-exclusive” and that System Products’ termination therefore was permissible. Id. at ¶¶ 9, 12. And according to Rosehoff, that termination “revoked the [] licenses, respective rights, and liabilities held by [Cataclean Americas] from Rosehoff and Systems Products to the Cataclean intellectual property.” Id. at ¶ 13. Not surprisingly, the defendants maintain that clause 3.1 controls and that the license agreement is irrevocable. See Docket Item 22-3 at 2-4. Despite Systems Products’ purported termination of the agreement, the defendants continued to associate themselves with the Cataclean product. More

specifically, in January 2014, counsel for Truscott Terrace Holdings “began to send cease and desist letters to Rosehoff and its suppliers and customers [] claiming various rights in the Cataclean product.” Docket Item 17-10 at ¶ 17. And Gordon Gannon “continues to market himself as a Cataclean representative by claiming to be an International Product Manager and Marketing and Sales Specialist associated with [Cataclean Americas], us[ing] the Cataclean bottle to market himself on LinkedIn, and [] claim[ing] to be the contact person for potential United States government contracts on behalf of [Cataclean Americas].” Id. at ¶ 22. As a result, Rosehoff sent a letter to the Gannons in January 2021 “demand[ing] that [they] cease using the name Cataclean in any fashion [and] informing them that they have no legal right or license to use the

Cataclean mark . . . and that doing so violates Rosehoff’s rights.” Id. at ¶ 23 (capitalization removed); Docket Item 17-7 at 40-41. The defendants did not respond to that letter. Docket Item 17-10 at ¶ 24. Rosehoff previously sued these defendants in this district and in the United Kingdom. In 2012, Rosehoff sued the Gannons and Cataclean Americas in this district for trademark and patent infringement. See Rosehoff Ltd. v. Cataclean Americas LLC, No. 12-cv-1143, Docket Item 1 (W.D.N.Y. Nov. 19, 2012). That case was dismissed on May 30, 2013, because the license agreement included an enforceable forum selection clause requiring that disputes over the agreement be brought in “the courts of England and Wales.”2 See Rosehoff Ltd. v. Cataclean Americas LLC, 2013 WL 2389725, at *3 (W.D.N.Y. May 30, 2013). Less than a year later, Rosehoff filed another suit in this district, this time against all the defendants in this case except Cataclean Americas. See Rosehoff, Ltd. v.

Truscott Terrace Holdings LLC, 14-cv-277, Docket Item 1 (W.D.N.Y. Apr. 16, 2014). In that case, Rosehoff alleged that those defendants “d[id] not have trade dress rights in a particular plastic bottle to hold a fuel-enhancement product[] or a copyright on the particular label for that product.” Rosehoff, Ltd. v. Truscott Terrace Holdings LLC, 2020 WL 1659832, at *1 (W.D.N.Y. Mar. 27, 2020).

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Rosehoff, Ltd. v. CataClean Americas, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosehoff-ltd-v-cataclean-americas-llc-nywd-2022.