Spiral Direct, Inc. v. Basic Sports Apparel, Inc.

151 F. Supp. 3d 1268, 2015 WL 9450575, 2015 U.S. Dist. LEXIS 178299
CourtDistrict Court, M.D. Florida
DecidedNovember 24, 2015
DocketCase No: 6:15-cv-641-Orl-28TBS
StatusPublished
Cited by6 cases

This text of 151 F. Supp. 3d 1268 (Spiral Direct, Inc. v. Basic Sports Apparel, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spiral Direct, Inc. v. Basic Sports Apparel, Inc., 151 F. Supp. 3d 1268, 2015 WL 9450575, 2015 U.S. Dist. LEXIS 178299 (M.D. Fla. 2015).

Opinion

[1273]*1273ORDER

JOHN ANTOONII, United States District Judge

Plaintiffs Spiral Direct, Inc. (‘Spiral U.S.‘) and Spiral Direct, LTD. (‘Spiral U.K.‘) (collectively, ‘Plaintiffs') filed a seven-count complaint against Defendant Basic Sports Apparel, Inc. (“BSA”) arising from a dispute over the trademark ‘Spiral1 on certain clothing. (See Am. Compl, Doc. 16). BSA moves, to dismiss the Complaint, or, in the alternative, for a more definite statement .of Counts Six and Seven. (Doc. 27). After considering the motion to dismiss, the alternative motion, and Plaintiffs’ response (Doc. 35), I conclude that the motions must be.denied.

I. Background

Plaintiffs are related companies with overlapping management and are in the business of manufacturing and distributing “Gothic” style clothing bearing the mark “Spiral” in a distinctive script (“Plaintiffs’ mark”). (Am. Compl. at 3). Spiral U.K’s immediate predecessor-in-interest is Spiral Design Partnership, which began selling clothing in the U.S. in 1993, and' over the internet in 1997. (Id. at 3-4). In 1999, Spiral U.K. wholly acquired its predecessor. (Id.).

On January 22, 2015, Plaintiffs received a cease and desist letter from BSA’s attorney. (Am. Compl. at 4). The letter informed Plaintiffs that on January 19,1999, the United States Patent and Trademark Office (“USPTO”) issued BSA-a trademark under U.S. Registration No. 2,218,515 for the mark “Spiral” on various items of clothing (“BSA mark”). (Id.). In its registration application, BSA stated that it first used the mark on June 15, 1997. (Id.). . The letter further claimed that Plaintiffs’ “actions constitute trademark infringement and unfair competition under both state and federal law, including the Lanham Act,” (Ex. C to Am. Compl, Doc. 16-3), and requested that Plaintiffs “discontinue any and all use of the [infringing [trademark with the marketing, sale, distribution, or identification of products or services,” (id.). It further stated that “my client has instructed me to file suit unless you respond promptly and appropriately to this demand.” (Id.).

BSA owns and operates a business that manufactures clothing for sporting retailers that is sold under the trademarks of those third-party retailers. (Id. at 5). Plaintiffs allége that “BSA may manufacture a few [goods bearing the BSA mark, but] only ... by using the remaining fabric from a particular job order.” (Id.). BSA “does no publicity, marketing, or advertising” for any goods bearing the BSA mark, and only sells a “very limited quantity of a very limited number of items ... set forth in (their trademark registration].” (Id.). Plaintiffs allege that, at the time BSA applied for its trademark, it should have known that Plaintiffs’ predecessor was using Plaintiffs’ mark in commerce in the United States as early as 1993. (Id.). For that reason and others, Plaintiffs allege that BSA fraudulently obtained its trademark from the USPTO.1 (Id. at 5-6).

Under these circumstances, Plaintiffs sued BSA for (i) declaratory judgment of non-infringement under the Lanham Act (Count 1); (ii) declaratory judgment that BSA’s claims are barred by the doctrine of laches (Count 2); (iii) declaratory judgment of invalidity of BSA’s registered [1274]*1274trademark for abandonment -(Count 3) and for fraud on the’ USPTO (Count 4); and (iv) unfair competition arising from trademark infringement under the Lanham Act (Count 5),2 the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”) (Count -6),3 and Florida common law (Count 7). (Id. at 9-15).

II. Legal Standard

Generally, “(a) pleading that states a claim for relief must contain .... a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ.P. 8(a)(2). “[Detailed factual allegations” are not required, but “[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, 678, 129 S.Ct. 1937, 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). At the motion to dismiss stage, a court must evaluate all plausible inferences derived from the facts of the complaint in favor of the plaintiff. Whitwam v. JetCard Plus, Inc., 34 F.Supp.3d 1257, 1259 (S.D.Fla.2014). One caveat to the general pleading standard of Rule 8 is that “[i]n alleging fraud — a party must state, with particularity the circumstances constituting fraud.” Fed. R. Civ.P. 9(b). In considering a motion to dismiss brought under Federal Rule of Civil Procedure 12(b)(6), a court limits its “consideration to the well-pleaded factual allegations, documents central to or referenced in the complaint, and matters judicially noticed.” La Grasta v. First Union Sec., Inc., 358 F.3d 840, 845 (11th Cir.2004).

III. Analysis

A. Shotgun Pleading

BSA argues, that Plaintiffs’ First Amended Complaint is a “shotgun pleading.” The purpose of the' rule against shotgun pleadings is to ensure that a complaint gives “defendants adequate notice of the claims agáinst them and the grounds upon which each claim rests.” Weiland v. Palm Beach Cty. Sheriff’s Office, 792 F.3d 1313, 1323 (11th Cir.2015). The Eleventh Circuit condemns the practice of incorporating all preceding allegations in each successive count because it “lead[s] to a situation where most of the counts (i.e., all but the first) contain irrelevant factual allegations and legal conclusions.” Strategic Income Fund, L.L.C. v. Spear, Leeds & Kellogg Corp., 305 F.3d 1293, 1295 (11th Cir.2002). Here, although Plaintiffs incorporate paragraphs 1 through 37 in each of their seven counts, “(t]he allegations of each count are not rolled into every successive, count on down the line.” Weiland, 792 F.3d at 1324. Plaintiffs’ re-alleging of paragraphs 1 through 37 in each count is permissible so long as it does not “materially increase[ ] the burden "of understanding the factual allegations underlying each count.” Id. Paragraphs 1 through 37 of the Complaint set forth the background allegations of Plaintiffs’ claims and are not so voluminous, overlapping, or confusing that they materially increase the burden of understanding the grounds upon which Plaintiffs’ claims rest. Therefore, BSA’s motion must be denied on this ground.

B.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
151 F. Supp. 3d 1268, 2015 WL 9450575, 2015 U.S. Dist. LEXIS 178299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spiral-direct-inc-v-basic-sports-apparel-inc-flmd-2015.