Singh Mgt. Co., LLC v. Singh Dev. Co., Inc.

Court of Appeals for the Sixth Circuit·Decided May 20, 2019·No. 18-1566·Unpublished

Opinion

NOT RECOMMENDED FOR FULL-TEXT PUBLICATION File Name: 19a0258n.06

No. 18-1566

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

SINGH MANAGEMENT COMPANY, LLC, )

)

FILED

May 20, 2019

Plaintiff-Appellee, )

DEBORAH S. HUNT, Clerk

)

v. )

)

SINGH DEVELOPMENT COMPANY, INC.; ) SINGH GROUP, LLC; SINGH GROUP II, LLC; ) ON APPEAL FROM THE SINGH LENDING, LLC, dba Team Singh; SINGH ) UNITED STATES DISTRICT PROPERTY MANAGEMENT, LLC; DARSHAN ) COURT FOR THE EASTERN SINGH GREWAL; PARGAT SINGH GREWAL; ) DISTRICT OF MICHIGAN SINGH BUILDING COMPANY, INC.; SINGH ) MORTGAGE GROUP, LLC; SINGH REAL ) ESTATE, LLC; and JASJIT TAKHAR, )

)

Defendants-Appellants. )

Before: DONALD, LARSEN, and NALBANDIAN, Circuit Judges.

LARSEN, Circuit Judge. Singh Management Company, LLC filed trademark infringement claims against Darshan Singh Grewal and Pargat Singh Grewal, as well as against various entities they control. The district court ordered the claims to arbitration, and the arbitrator issued an award. After ostensibly confirming the arbitration award, the district court then entered injunctive relief which, Dashan and Pargat claim, was inconsistent with the confirmation order. Darshan and Pargat filed a post-judgment motion to clarify or amend the judgment, but the district court summarily denied their motion. Due to the apparent inconsistencies in the district court’s orders, and our inability to discern an explanation for them, we cannot rule out the possibility that

the district court abused its discretion. We therefore VACATE the denial of the motion and REMAND for further proceedings.

I.

The extended Singh Grewal family operates “a vast network of real estate development and management companies” which use the ‘Singh’ trade name, including the appellee entity Singh Management LLC (collectively, Singh Management). The family patriarch, Gurmale Singh Grewal, has been chief executive of Singh Management since 1973. Two of his nephews, Darshan Singh Grewal and Pargat Singh Grewal, began working for Singh Management in the mid-1990s. In 2010 and 2011 respectively, Darshan and Pargat were ousted from Singh Management over allegations of financial misconduct.1 They subsequently formed their own real estate businesses using the ‘Singh’ name.

Darshan and Pargat initiated a shareholder lawsuit in Michigan state court against Singh Management; the state court referred the case (including Singh Management’s counterclaims) to arbitration. Before the arbitration began, Singh Management filed a complaint in federal court alleging that Darshan, Pargat, and entities controlled by the two (collectively, Darshan and Pargat), as well as a business associate named Jasjit Takhar, had infringed Singh Management’s trademark rights in the ‘Singh’ name. The district court determined that the trademark claims were subject to the parties’ arbitration agreements and compelled arbitration. The order noted, however, that the arbitration agreements did not grant the arbitrator authority to issue injunctive relief. Thus, the district court “retain[ed] jurisdiction to entertain post-arbitration motions to enter judgment on the arbitration award and for injunctive relief.”

1 The arbitrator ultimately found these allegations baseless.

One arbitrator heard all the state and federal claims in a consolidated proceeding governed by the Michigan Uniform Arbitration Act (MUAA), Mich. Comp. Laws § 691.1681 et seq. The arbitrator issued a comprehensive Arbitration Opinion and Award in January 2017 (“January Award”) in which, among other things, he found that Darshan and Pargat’s use of the ‘Singh’ name had infringed on Singh Management’s rights. The January Award stated that “consumers would likely be confused if [Darshan and Pargat] continued to use the name ‘Singh’ alone in the names of their business entities which are unrelated to those of [Singh Management].” But the arbitrator also found that because Singh was Darshan and Pargat’s last name, they “may use the name ‘Singh’ in the name of a business entity provided that the name is used as the surname given to Plaintiffs in conjunction with their full names.” The arbitrator declined to award Singh Management any money damages for the infringement.

After receiving the January Award, both sides asked the arbitrator to clarify various aspects of the hundred-page decision—a procedure authorized by the MUAA. See Mich. Comp. Laws § 691.1700(1)(c). Specifically, Darshan and Pargat asked the arbitrator to clarify “[t]he scope of injunctive relief regarding trademark claims,” saying that the January Award “discusses certain hypothetical instances of the use of the name [i.e., the full name example] which may or may not be permitted. We seek to confirm our understanding of your ruling.” Determining the scope of injunctive relief was arguably beyond the arbitrator’s jurisdiction because the district court had reserved jurisdiction to entertain motions for injunctive relief; nevertheless, Singh Management did not object to the motion. The arbitrator responded to the motion by ordering both sides to “prepare a proposed order, for review by the Arbitrator, consistent with the Arbitrator’s rulings on the trademark issues in the [January] Award.” After receiving the proposed orders, the arbitrator would “review each order and render a decision as to which Order [was] appropriate based on the”

January Award. Once again, Singh Management failed to object to the arbitrator’s jurisdiction to “render a decision” about the “appropriate” injunctive relief.

Instead, both sides submitted proposed orders. Singh Management submitted one that would enjoin Darshan and Pargat and their affiliates from using the ‘Singh’ name in any business unless they used it as part of a full name—e.g., ‘Darshan Singh Grewal Building Company.’ Darshan and Pargat, on the other hand, submitted a less restrictive proposal that would have allowed Darshan and Pargat to use the name in any way except “alone as the only identifying name to describe its business in a manner that is likely to cause confusion with any common law rights Singh LLC has in the word Singh.” In a letter accompanying their proposed order, Darshan and Pargat explained that they viewed the January Award’s reference to using their full names as illustrative, not exclusive. In other words, they believed the January Award indicated that using Darshan’s or Pargat’s full name as part of a business name was one example of a permissible use of the ‘Singh’ name but was not the only example. Darshan and Pargat’s proposed order also specified that “[a]ll claims against [Takhar] are hereby dismissed, with prejudice.” They explained that explicitly dismissing Takhar would tie up a “loose end” in the January Award, which “made no finding against . . . Takhar,” and was “clear that ‘any other relief not expressly granted herein is denied.’”

Unsatisfied with the parties’ proposed orders, the arbitrator instructed Singh Management “to submit a new order to him for consideration that addresses only the rulings made in the [January] Award.” He explained that “the Order should not include any relief that was not specifically ordered in the [January] Award.” Once Singh Management had submitted this new draft order, Darshan and Pargat would have an opportunity to “provide their comments” on it.

The second round of proposed orders played out much like the first. Singh Management again submitted a proposed order that would have prohibited Darshan and Pargat “from using the . . . Singh name” unless “used in conjunction with their first and last names.” Darshan and Pargat submitted edits that would prohibit them only from using the ‘Singh’ name “alone without more to distinguish its business(es) from” Singh Management. And they again proposed language dismissing all claims against Takhar with prejudice. As before, Singh Management did not object to the exercise.

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Singh Mgt. Co., LLC v. Singh Dev. Co., Inc., (6th Cir. 2019).

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