SNA, Inc. v. Array

51 F. Supp. 2d 542, 1999 U.S. Dist. LEXIS 8324, 1999 WL 359786
CourtDistrict Court, E.D. Pennsylvania
DecidedMay 28, 1999
DocketCiv.A. 97-7158, Civ.A. 97-3793
StatusPublished
Cited by3 cases

This text of 51 F. Supp. 2d 542 (SNA, Inc. v. Array) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SNA, Inc. v. Array, 51 F. Supp. 2d 542, 1999 U.S. Dist. LEXIS 8324, 1999 WL 359786 (E.D. Pa. 1999).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

KATZ, Senior District Judge.

The plaintiffs in these two consolidated cases are Richard Silva and two companies he operates, SNA, Inc. and Silva Enterprises, Ltd (SEL). Through these companies, Silva is in the business of manufacturing do-it-yourself kits for an amphibious aircraft called the Seawind. The defendants are Douglas Karlsen and a company he operates called Turbine Design, Inc. and Paul Array and a company he operates called Horizon Unlimited. Both of these companies are involved in the seaplane industry in various ways.

In these lawsuits, Silva contends that the defendants have breached contracts with his company, have defamed him and disparaged his company, have infringed on his company’s trademark and trade dress rights, have engaged in unfair competition by misappropriating his company’s trade secrets, have interfered with his company’s contractual relations and prospective business relations, and have engaged in a civil conspiracy. Defendants Karlsen and Turbine Design have counterclaimed, alleging antitrust violations and seeking to invalidate Silva’s patent and trademark.

Plaintiffs have moved for a preliminary injunction. Upon consideration of the motion, the defendants’ responses thereto, and after a hearing, the court makes the following findings of fact and conclusions of law.

Preliminary Injunction Standard

In deciding whether to grant a preliminary injunction, the court must consider whether: (1) the movant has shown a reasonable probability of success on the merits; (2) the movant will be irreparably injured by denial of relief; (3) granting preliminary relief will not result in even greater harm to the nonmoving party; and (4) granting the preliminary relief will be in the public interest. See Council of Alternative Political Parties v. Hooks, 121 F.3d 876, 879 (3d Cir.1997). A request for preliminary relief should only be granted if the court is convinced that all factors favor the relief. See Opticians Ass’n of Amer. v. Independent Opticians of Amer., 920 F.2d 187, 192 (3d Cir.1990). Plaintiffs have a high burden in showing irreparable injury:

Establishing a risk of irreparable harm is not enough. A plaintiff has the burden of proving a clear showing of immediate irreparable injury. The requisite feared injury or harm must be irreparable — not merely serious or substantial, and it must be of a peculiar nature, so that compensation in money cannot atone for it.

ECRI v. McGraw-Hill, Inc., 809 F.2d 223, 226 (3d Cir.1987) (internal quotes and cites omitted). An injunction should not be granted if a legal remedy is available: “The availability of adequate monetary damages belies a claim of irreparable injury.” Frank’s GMC Truck Ctr., Inc. v. General Motors Corp., 847 F.2d 100, 102 (3d Cir.1988).

Breach of Contract

All the defendants admit that "they have caused molds to be made from a Seawind. Turbine Design hired Piranha *546 Boats, Inc. to make several molds of the plane (as well as at least one from a canopy stolen from SNA’s canopy subcontractor and sold to Turbine Design through a middle-man), and Piranha Boats, Inc. did so. The molds are now at Piranha Boats’ shop and Turbine Design’s shop, where they have been held unused since this litigation began. 1

On this record, it is unclear whether Karlsen breached a contractual obligation to plaintiffs. The pieces of paper bearing Karlsen’s signature are unclear as to just what was agreed (i.e., whether he agreed not to copy parts from any Seawind, or just from the particular planes to which these contracts explicitly refer). The ambiguities are not persuasively resolved by the parol evidence on this record. It is also unclear whether Array breached his purchase agreement with SNA, because it is unclear whether the non-copy provision in the contract would apply to a situation where he had molds made from a plane other than his own. 2

Additionally, as to both Horizon Unlimited’s contract and Karlsen’s contracts, if the parol evidence does establish they mean what plaintiff contends, there is a serious question whether the contracts are enforceable as a matter of public policy because of their attempt to create a private patent for a product not qualifying for federal patent law protection. See Bonito Boats, Inc. v. Thunder Craft Boats, Inc., 489 U.S. 141, 109 S.Ct. 971, 108 L.Ed.2d 118 (1989) (holding that Florida statute prohibiting using direct molds to copy un-patented boat hulls was pre-empted by federal patent laws); compare Aronson v. Quick Point Pencil Co., 440 U.S. 257, 99 S.Ct. 1096, 59 L.Ed.2d 296 (1979) (ruling that private agreement did not run afoul of patent law because it did not forbid anyone from copying an unpatented product).

If, notwithstanding these factual and legal obstacles, plaintiffs are able to prove their claims, money damages will provide an adequate remedy at law, as there is no demonstrated threat of future harm which injunctive relief can rectify in any practicable way.

Defamation and Commercial Disparagement

For purposes of the preliminary injunction, the court can only be concerned with statements currently on one or the other of defendants’ webpages. Any defamation or disparagement that was there in the past and has since been removed is properly remedied by a damages action, and the court cannot enjoin possible future defamation. 3 During closing argument, *547 plaintiffs counsel conceded that the court should not edit anyone’s web page.

The type of statements made on Horizon Unlimited’s webpage is seen by examining the site’s “Seawind Information Menu,” which is in essence a table of contents to all the Seawind-related materials on the site. See Pl.Ex. 25. It contains each back issue of the Seawind Builders Newsletter and some listings with titles such as “My Plane” and “A lane Called the Seawind.” It also contains an entire sections called “SNA and Dick Silva,” with titles including “Dick Silva commits Patent Fraud,” “Dick Silva copies parts,” and “Dick Silva copies more parts.” 4 Every listed title is a link to a page of the site that then contains detailed materials and commentary on the named topic.

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51 F. Supp. 2d 542, 1999 U.S. Dist. LEXIS 8324, 1999 WL 359786, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sna-inc-v-array-paed-1999.