Spangler Candy Co. v. Tootsie Roll Indus., LLC

372 F. Supp. 3d 588
CourtDistrict Court, N.D. Ohio
DecidedMarch 13, 2019
DocketCase No. 3:18-cv-1146
StatusPublished
Cited by9 cases

This text of 372 F. Supp. 3d 588 (Spangler Candy Co. v. Tootsie Roll Indus., LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spangler Candy Co. v. Tootsie Roll Indus., LLC, 372 F. Supp. 3d 588 (N.D. Ohio 2019).

Opinion

Jeffrey J. Helmick, United States District Judge

I. INTRODUCTION

Plaintiff Spangler Candy Company moved for a preliminary injunction against Defendant Tootsie Roll Industries, LLC. (Doc. No. 17). In response, Tootsie opposed the injunction, (Doc. Nos. 25 (sealed) & 26 (redacted) ), and moved to exclude expert testimony and reports introduced by Spangler in its motion for preliminary injunction. (Doc. No. 24). Spangler then filed a memorandum in opposition to expert exclusion, (Doc. Nos. 39 (sealed) & 40 (redacted) ), and a reply in support of injunctive relief sought. (Doc. Nos. 37 (sealed) & 38 (redacted) ). Following this briefing and at the request of the parties, I held oral argument on these matters.

*594II. BACKGROUND

This litigation is centered upon the two lollipop bags pictured above.1 The bag on the left is manufactured by Spangler, the one on the right by Tootsie. The undisputed facts are as follows.

In 2011, after spending 20 months and more than $220,000 in an effort to "refresh its DUM DUMS packaging," Spangler began using the packaging shown above. (Doc. No. 17-2 at 3-4). Since that time, DUM DUMS have been continuously sold in this packaging. (Id. at 4).

In 2016, CHARMS MINI POPS , which then appeared in the packaging above, held only 0.04% of the lollipop market. (Doc. No. 25-1 at 2). Because Spangler had been gaining market share and was approaching that of Tootsie's, Tootsie developed a strategy in which CHARMS MINI POPS would compete with DUM DUMS. (Doc. No. 36-8, Doc. No. 36-13). Although the price and value competition strategy was introduced in January 2017, the idea of changing the packaging was not considered until May 2017.2

*595(Doc. No. 36-8; Doc. No. 36-12 at 23). By July 2017, the red packaging first appeared in Tootsie materials, and by September 2017, the design had been approved for use. (Doc. No. 36-3 at 4, Doc. No. 36-5, Doc. No. 36-6). Although Tootsie enlisted the services of a third-party consultant, Cassata & Associates, to develop initial designs, none of Cassata's proposed designs were used.3 (Doc. No. 36-1; Doc. No. 36-12 at 17-18). Instead, with knowledge of DUM DUMS trade dress and using no market research, Tootsie completely redesigned the package in only five months. (Doc. No. 36-4; Doc. No. 36-12 at 31-32; Doc. No. 36-13 at 39, 41, 45-46).

Spangler learned of the new CHARMS MINI POPS packaging in March 2018 and sent a cease-and-desist letter on April 3, 2018. (Doc. No. 25-2 at 20; Doc. No. 37-2 at 2-3). Tootsie promptly rejected Spangler's demand on April 12, 2018. (Doc. No. 37-2 at 4-6). After concluding Tootsie intended wide distribution, Spangler filed suit in May 2018. (Doc. No. 1; Doc. No. 37 at 18).

III. EXPERT TESTIMONY

As the trial judge, it is my duty to act as the "gatekeeper" and determine the admissibility of expert testimony. See Kumho Tire Co., Ltd. v. Carmichael , 526 U.S. 137, 147, 119 S.Ct. 1167, 143 L.Ed.2d 238 (1999) ; Daubert v. Merrell Dow Pharm., Inc. , 509 U.S. 579, 592, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993) ; Fed. R. Evid. 104(a). This inquiry is governed in part by Rule 702, which provides,

A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if:
(a) the expert's scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
(b) the testimony is based on sufficient facts or data;
(c) the testimony is the product of reliable principles and methods; and
(d) the expert has reliably applied the principles and methods to the facts of the case.

Fed. R. Evid. 702. Ultimately, an expert's testimony will be admissible if it "both rests on a reliable foundation and is relevant to the task at hand." Daubert , 509 U.S. at 597, 113 S.Ct. 2786.

A. STEVE ULINE

Tootsie moves to exclude the report of Steve Uline on grounds that it will not help the trier of fact, alleging the report states only conclusory opinions "based on no relevant data or reliable methodology." (Doc. No. 24-1 at 15). In part, I agree. But because Uline has the expertise necessary to testify to the product development process through his background and experience in marketing and branding, this section of the report is admitted. (Doc. No. 17-3 at 7-15; Doc. No. 24-6 at 12-13). Conversely, the remainder of his report must be excluded. (Id. at 5-6, 16-24).

The sections to be excluded are based upon unverified methodology and questionable sources rather than " 'a reliable basis in the knowledge and experience of [the relevant] discipline.' " Kumho , 526 U.S. at 141, 149, 119 S.Ct. 1167 (quoting Daubert , 509 U.S. at 592, 594, 113 S.Ct. 2786 ). First, Uline has no "specialized knowledge" of many of the topics on which he opines. (Doc. No. 24-6 at 7, 9). Instead, his opinion is informed by various blogs *596and articles he discovered through internet searches conducted in preparation of this case. (Id. at 5-6). Second, though he quotes extensively to these articles and blogs in the report and bases his opinion on them, Uline did not know many of the sources or authors and was unable to attest to their reputation. (Id.

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Bluebook (online)
372 F. Supp. 3d 588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spangler-candy-co-v-tootsie-roll-indus-llc-ohnd-2019.