Select Comfort Corp. v. Sleep Better Store, LLC

838 F. Supp. 2d 889, 2012 WL 716667, 2012 U.S. Dist. LEXIS 27814
CourtDistrict Court, D. Minnesota
DecidedMarch 2, 2012
DocketCivil No. 11-621 (JNE/JSM)
StatusPublished
Cited by12 cases

This text of 838 F. Supp. 2d 889 (Select Comfort Corp. v. Sleep Better Store, LLC) 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
Select Comfort Corp. v. Sleep Better Store, LLC, 838 F. Supp. 2d 889, 2012 WL 716667, 2012 U.S. Dist. LEXIS 27814 (mnd 2012).

Opinion

ORDER

JOAN N. ERICKSEN, District Judge.

Plaintiff Select Comfort Corporation (“Select Comfort”) brought this action against Defendant The Sleep Better Store, LLC (“Sleep Better”), alleging various unfair competition and trademark infringement claims. In its Answer, Sleep Better alleged a counterclaim of tortious interference with contract (Count II), based upon a cease-and-desist letter that Select Comfort sent to third-party Overstock.com. Now before the Court is Select Comfort’s 12(b)(6) Motion to Dismiss Count II of Defendant’s Amended Answer and Counterclaim.

[891]*891I. BACKGROUND

Select Comfort sells adjustable air beds under the Sleep Number® and Select Comfort® trademarks. Sleep Better, which recently changed its name to Dream Number, also sells adjustable air beds. Sleep Better contracted with Overstock, com to sell Sleep Better’s beds on the Overstock.com website. On June 30, 2011, Select Comfort sent a cease-and-desist letter to Overstock.com. The letter stated, in relevant part:

It has recently come to our attention that Overstock.com is infringing Select Comfort’s trademark rights under the federal Lanham Act and under state laws by using “Number Air Mattress” on its website located at www.overstock. com regarding the sale of adjustable air beds/mattresses. It is also using this term in advertisements on Nextag.com. We believe Overstock.com’s use of the term “Number Air Mattress” is likely to cause confusion or mistake among consumers, or to deceive consumers as to the origin of Overstock.com’s goods or as to Select Comfort’s affiliation or connection with, or sponsorship or approval of, Overstock.com’s goods and/or services or commercial activities. Furthermore, your use of the mark “Number Air Mattress” dilutes Select Comfort’s famous and distinctive Sleep Number mark and creates an association with Select Comfort’s mark that impairs its distinctiveness.
Select Comfort has been vigorous in protecting its marks, and has successfully prevented registration and use of other “Number” marks for beds, adjustable beds and the like. Select Comfort believes the likelihood for confusion and dilution is high when Overstock.com uses “Number Air Mattress” in connection with the promotion and sale of products on Overstock.com and Select Comfort will continue to protect its valuable Sleep Number mark in these instances. Select Comfort demands that Overstock, com immediately cease and desist from further use in any medium of the term “Number Air Mattress” or any similar term that would unlawfully cause confusion among consumers or dilute Select Comfort’s marks.

Sleep Number has not registered the phrases “Number Air Mattress” or “Number Bed” with the U.S. Patent and Trademark Office. Nevertheless, in response to the cease-and-desist letter, Overstock.com agreed to stop using the phrase on its website. Although Select Comfort did not specifically request that Overstock.com remove any products from its website, Overstock, com also chose to remove Sleep Better’s beds from sale on its website.

Sleep Better contends that Select Comfort’s cease-and-desist letter constituted tortious interference with Sleep Better’s contract with Overstock.com. In its Answer to First Amended Complaint and Counterclaim, Sleep Better alleged that Select Comfort’s cease-and-desist letter was an improper and unjustified demand, which “intentionally procured the breach of Sleep Better’s contract with Overstock.com because Plaintiffs conduct resulted in Overstock, corn’s removal of Sleep Better’s Number Beds from sale on Overstock.com’s website.” Answer to First Am. Comp. & Countercl. ¶¶ 13, 15. Select Comfort argues that the Court should dismiss the counterclaim because: (1) Sleep Better failed to plead the element that Select Comfort’s demand letter procured an actual breach of contract between Sleep Better and Overstock.com; (2) Select Comfort was justified in sending the demand letter to protect its federally registered Sleep Number® trademarks; (3) the Noerr-Pennington doctrine immunizes the pre-suit demand letter from tort liability; and (4) Minnesota’s anti-SLAPP statutes [892]*892protect Select Comfort from tort liability as a matter of law.

II. DISCUSSION

When ruling on a motion to dismiss for failure to state a claim pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, a court must accept the facts alleged in the complaint as true and grant all reasonable inferences in favor of the plaintiff. Mulvenon v. Greenwood, 643 F.3d 653, 656 (8th Cir.2011). Although a pleading is not required to contain detailed factual allegations, “[a] pleading that offers ‘labels and conclusions’ or ‘a formulaic recitation of the elements of a cause of action will not do.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868(2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Id. (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. The court “generally may not consider materials outside the pleadings,” but “[i]t may ... consider some public records, materials that do not contradict the complaint, or materials that are ‘necessarily embraced by the pleadings.’ ” Noble Sys. Corp. v. Alorica Cent., LLC, 543 F.3d 978, 982 (8th Cir.2008) (quoting Porous Media Corp. v. Pall Corp., 186 F.3d 1077, 1079 (8th Cir.1999)). The cease-and-desist letter was attached to the Answer to the First Amended Complaint and Counterclaim, and thus may be considered. See, e.g., Bradford v. Huckabee, 394 F.3d 1012, 1015 (8th Cir.2005) (considering exhibits attached to the complaint as part of the complaint).

A. Failure to Plead the Essential Elements of a Tortious Interference with Contract Claim

Under Minnesota law, a cause of action for tortious interference with contract requires Sleep Better to prove: (1) the existence of a contract between Sleep Better and a third party; (2) Select Comfort’s knowledge of the contract; (3) Select Comfort intentionally procured the breach of Sleep Better’s contract; (4) Select Comfort’s procurement was without justification; and (5) resulting damages. Kallok v. Medtronic, Inc., 573 N.W.2d 356, 362 (Minn.1998). Select Comfort asserts that Sleep Better failed to plead the essential element that Select Comfort’s demand letter procured an actual breach of contract between Sleep Better and third-party Over stock, com.

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Bluebook (online)
838 F. Supp. 2d 889, 2012 WL 716667, 2012 U.S. Dist. LEXIS 27814, Counsel Stack Legal Research, https://law.counselstack.com/opinion/select-comfort-corp-v-sleep-better-store-llc-mnd-2012.