SAM'S RIVERSIDE, INC. v. Intercon Solutions, Inc.

790 F. Supp. 2d 965, 2011 U.S. Dist. LEXIS 62280, 2011 WL 2333394
CourtDistrict Court, S.D. Iowa
DecidedJune 10, 2011
Docket4:09-cv-20
StatusPublished
Cited by16 cases

This text of 790 F. Supp. 2d 965 (SAM'S RIVERSIDE, INC. v. Intercon Solutions, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SAM'S RIVERSIDE, INC. v. Intercon Solutions, Inc., 790 F. Supp. 2d 965, 2011 U.S. Dist. LEXIS 62280, 2011 WL 2333394 (S.D. Iowa 2011).

Opinion

MEMORANDUM OPINION AND ORDER

ROBERT W. PRATT, Chief Judge.

Currently before the Court is a “Motion for Summary Judgment” filed by Intereon Solutions, Inc. (“Intereon”), A-Reliable Auto Parts & Wreckers, Inc. (“A-Reliable”), and ARSHG, Inc. (“ARSCO” 1 ) ( collectively “Defendants”) on October 12, 2010. Clerk’s No. 123. Sam’s Riverside, Inc. (“Plaintiff’) filed a response in opposition to the motion on November 12, 2010. Clerk’s No. 151. Defendants filed a reply on November 22, 2010. Clerk’s No. 177. Plaintiff filed a sur-reply on December 3, 2010. Clerk’s No. 185. Also before the Court are a number of cross-motions for partial summary judgment filed by Plaintiff on October 12, 2010. Clerk’s Nos. 113 (“Motion for Partial Summary Judgment as to Liability for Cybersquatting”), 118 (“Motion for Partial Summary Judgment as to Liability for False Advertising”), 120 (“Motion for Partial Summary Judgment as to Liability for False Designation of Origin”), 129 (“Motion for Partial Summary Judgment as to Liability for Per Se Palming Off’). Defendants filed responses in opposition to these motions on November 12, 2010. Clerk’s Nos. 150, 161, 162, 163. Plaintiff filed replies on November 19, 2010. Clerk’s Nos. 168, 169, 170, 175. Plaintiff filed a supplemental brief, with leave of Court, on March 21, 2011. Clerk’s No. 198; see also Clerk’s No. 199. Defendants filed a response to the supplemental brief on April 1, 2011. Clerk’s No. 203. Plaintiff filed a reply on April 6, 2011. Clerk’s No. 204. Defendants filed a surreply, with leave of Court, on April 11, 2011. Clerk’s No. 207; see also Clerk’s No. 206. Plaintiff filed a reply to that surreply on April 18, 2011. Clerk’s No. 210.

*971 The Court held a hearing on these motions on March 28, 2011. Clerk’s No. 202. At the hearing, the Court ordered Plaintiff to file a letter with additional factual information. See id. Plaintiff did so on April 6, 2011. See Clerk’s No. 208. Defendants filed a response to that letter on April 13, 2011. Clerk’s No. 209. The matters are fully submitted. 2

I. FACTUAL BACKGROUND 3

A. The Parties

Plaintiff is a diversified business in the automotive and truck industry. Clerk’s No. 150-1 ¶ 1. Plaintiff sells, among other things, heavy duty truck parts and air cleaners. See Clerk’s No. 151-1 ¶ 1 (referring to Plaintiffs “heavy duty truck parts, air cleaners business and heavy duty truck salvage business”). Bryan Hainline (“Hainline”) is one of Plaintiffs employees. See id.; Clerk’s No. 131 ¶ 1.

Intercon is a company currently owned by Howard Gossage (“Gossage”) and Brian Brundage (“Brundage”). Clerk’s No. 131 ¶ 23. Gossage originally founded Intercon as a fax service “for locating truck parts but eventually Gossage sold off the fax locating services and entered into the web marketing business.” Id. ¶ 24. When Gossage entered the Internet marketing business, he hired his nephew, Brundage, “to run the Intercon business because Brundage was much more knowledgeable about the Internet than Gossage.” Id. ¶ 25. Intercon does not sell heavy trucks and is not a repairable truck dealer. Clerk’s No. 150-1 at ¶ 15. Intercon has never repaired trucks, had a selection of trucks on-site, or sold air cleaners. Id. at Resps. to ¶¶ 14,17.

ARSCO is a company that sells truck parts “mainly to rebuilders.” Clerk’s No. 131 ¶¶ 33-34. ARSCO does not sell heavy trucks and is not a repairable truck dealer. Clerk’s No. 150-1 at ¶ 16. ARSCO has never repaired trucks or had a selection of trucks on-site. Id. at Resps. to ¶¶ 14, 17. At all relevant times, ARSCO was owned solely by Howard Gossage. Clerk’s No. 131 ¶ 34. On October 9, 2008, A-Reliable purchased certain assets from ARSCO. Id. ¶ 48. A-Reliable is a wholly-owned subsidiary of LKQ Corporation (“LKQ”). 4 Id.; see also Clerk’s No. 153 at 2.

*972 B. Plaintiff’s Asserted Mark

Plaintiff claims that, prior to 2001, it had established protectable rights in the term “Sam’s Riverside.” See Clerk’s No. 120-2 ¶ 3; see also Hr’g Tr. 6:13-18, 9:11 — 17. 5 Defendants hotly dispute this assertion, arguing that, prior to 2009, Plaintiff “always identified itself on its website, in its newspaper and trade magazine advertising and on invoices as Sam’s Riverside [T]ruck [P]arts or Sam’s Riverside, Inc. and never used the term Sam’s Riverside alone.” See Clerk’s No. 162-1 at Resp. to ¶ 3. Due to the evidentiary and other legal issues raised by the parties’ arguments, the Court will discuss the facts related to this issue below in Section III(A).

C. The Websites

In early 2001, Brundage and Hainline agreed that Intercon would “develop and maintain several websites to assist Plaintiff in marketing” its business. Clerk’s No. 131 ¶ 1. Pursuant to this agreement, Brundage selected and registered three domain names: www.samstrucks.com, www.samsaircleaners.com, www. samstruck.com (collectively the “Domain Names”). Id. ¶ 2. Intercon also created three websites that could be accessed via the Domain Names (collectively the “Websites”). See id. ¶¶ 2-3.

The Websites were originally “designed to drive Internet leads to Plaintiff.” Id. ¶ 4. The Websites contained Plaintiffs contact information but did not link directly to Plaintiffs preexisting website, located at www.samsriverside.com. See id. ¶ 5; see also Clerk’s No. 132-1 at 11 (Brundage Dep. Tr. 98:12-14). Instead, the Websites each contained an “email link” that allowed customers to submit questions or comments, which would be emailed to an email address managed by Intercon. See Clerk’s No. 131 ¶ 5. The emails (referred to by the parties as “leads”) were then supposed to be sent to Plaintiff. 6 However, “on two single occasions between 2001 and 2004 email leads from the Websites were sent from Intercon to ARSCO.” 7 Clerk’s No. 177-1 at Resp. to ¶ 26.

Intercon maintained the Websites for Plaintiff until 2004. Clerk’s No. 131 ¶ 3. In January of 2004, Hainline called Brundage and informed him that “Plaintiff wanted to terminate its on-going web-management contract with Intercon.” Id. ¶ 8. The parties dispute, however, what Hainline and Brundage said during this call regarding the future use of the Websites and the associated domain names. At his deposition, Brundage testified that Hainline told him that Intercon “could keep the sites” because they “were not working for Plaintiff.” Id. ¶ 10 (citing Clerk’s No. 132-1 at 4 (Brundage Dep. Tr. 47-48)).

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Bluebook (online)
790 F. Supp. 2d 965, 2011 U.S. Dist. LEXIS 62280, 2011 WL 2333394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sams-riverside-inc-v-intercon-solutions-inc-iasd-2011.