Styleline Studios International Limited v. Litvack

CourtDistrict Court, E.D. New York
DecidedJuly 25, 2025
Docket2:24-cv-01192
StatusUnknown

This text of Styleline Studios International Limited v. Litvack (Styleline Studios International Limited v. Litvack) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Styleline Studios International Limited v. Litvack, (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------------------x STYLELINE STUDIOS INTERNATIONAL LIMITED,

Plaintiff, MEMORANDUM AND ORDER -against- 24-CV-01192 (OEM) (JMW)

JAY LITVACK,

Defendant and Counterclaim Plaintiff,

-against-

STYLELINE STUDIOS INTERNATIONAL LIMITED, TINA EY VEAN LIU, and DIMITRIOS MAVRIDAKIS,

Counterclaim Defendants. -----------------------------------------------------------------x ORELIA E. MERCHANT, United States District Judge:

On February 15, 2024, plaintiff Styleline Studios International Limited (“Styleline INT”) commenced this action against defendant Jay Litvack for allegedly counterfeiting and willfully infringing upon Plaintiff’s federally registered trademark “J/SLIDES.” Complaint (“Compl.”), ECF 1. Specifically, Styleline INT asserts the following claims against Litvack: counterfeiting and trademark infringement pursuant to the Lanham Act, 15 U.S.C. §1114(1), federal unfair competition pursuant to 15 U.S.C. §1125(a), counterfeiting and trademark infringement under New York common law, and unfair competition under New York common law. In turn, defendant and counterclaim plaintiff Jay Litvack (“Litvack” or “Counterclaim Plaintiff”) asserted a defamation counterclaim against Styleline INT, Tina Ey Vean Liu (“Liu”), and Dimitrios Mavridakis (“Mavridakis”) (collectively, “Counterclaim Defendants”). Counterclaim Plaintiff’s Answer and Counterclaim, ECF 29. In his Amended Counterclaim, filed August 21, 2024, Litvack alleges Counterclaim Defendants sent demand letters falsely stating that Litvack was selling counterfeit J/SLIDES shoes to his business partners to misappropriate Styleline Studios LLC’s assets for themselves. See Amended Counterclaim (“Am. Countercl.”), ECF 60 ¶ 10. Further, Litvack alleges that these statements were defamatory and caused harm to

his business reputation. Id. ¶ 12. On August 27, 2024, the Court referred the Counterclaim Defendants’ pre-motion conference request on anticipated motion to dismiss the Amended Counterclaim and any resulting motions to Magistrate Judge Wicks. See Docket Order dated August 27, 2024. On April 22, 2025, Magistrate Judge Wicks issued a Report & Recommendation (“R&R”), ECF 91. On May 20, 2025, the R&R was fully briefed.1 Before the Court is Magistrate Judge Wicks’ R&R recommending that the Court grant Counterclaim Defendants’ motion to dismiss Counterclaim Plaintiff’s Amended Counterclaim pursuant to Federal Rule of Civil Procedure 12(b)(6) and strike the request for punitive damages for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(f). For the following

reasons, Counterclaim Plaintiff’s Objections to the R&R are overruled, the R&R is adopted, and Counterclaim Defendants’ motion to dismiss the Amended Counterclaim and strike the request for punitive damages is granted.

1 See Counterclaim Defendants’ Motion to Dismiss Counterclaim Plaintiff’s Amended Counterclaim, ECF 76; Counterclaim Defendants’ Memorandum of Law in Support of their Motion to Dismiss (“Countercl. Defs.’ Mem. of Law”), ECF 76-1; R&R; Counterclaim Plaintiff’s Objections (“Litvack’s R&R Objections”), ECF 92; Counterclaim Plaintiffs’ Memorandum of Law in Opposition to Motion to Dismiss (“Litvack’s Mem. of Law”), ECF 77 at 15. Counterclaim Defendants filed a timely response in opposition to Counterclaim Plaintiff’s objections (“Countercl. Defs.’ Reply in Support of R&R”), ECF 94. BACKGROUND A. R&R Jurisdictional Findings The R&R recommends that the Court decline to exercise diversity jurisdiction over Counterclaim Plaintiff’s counterclaim for failure to allege facts establishing that the amount in

controversy exceeds $75,000, thus satisfying the amount in controversy requirement for purposes of diversity jurisdiction. R&R at 16. The R&R found, pursuant to 28 U.S.C. §§ 1331 and 1332, that the Court does not have diversity jurisdiction to hear Litvack’s counterclaim because Litvack’s declaration does not identify the business deals or profit he lost as a result of the alleged defamation, nor does it proffer any other non-conclusory information to establish that the amount in controversy has been met. Id. at 11, 16. However, the R&R recommends that the Court exercise supplemental jurisdiction over Litvack’s counterclaim finding, pursuant to 28 U.S.C. § 1367(a), that the counterclaim arises out of the same common nucleus of operative facts as the trademark infringement claim at issue in the underlying suit, over which the Court has original federal question jurisdiction, and no Section

1367(c) exceptions apply. Id. at 20-21. B. R&R Findings on the Merits The R&R recommends that Counterclaim Defendants’ motion to dismiss be granted because Counterclaim Plaintiff’s counterclaim fails as a matter of law based on the following findings. First, the demand letters sent to Litvack’s business associates communicated a good faith assertion of a legal position, and therefore were not defamatory per se. Id. at 26. Second, even if the Court were to determine that the letters were defamatory per se, the pre-litigation communications privilege applies to three of the four letters, and therefore those letters cannot form the basis of an actionable defamation claim. Id. at 28-29. The privilege applies because the demand letters, sent by Counterclaim Defendants’ attorney, are pertinent documents created by an attorney in good faith anticipation of litigation. Id. at 28. Thus, the fourth letter, the demand letter sent by Counterclaim Defendant Liu, is not subject to the pre-litigation privilege

because Liu was not acting as an attorney. Id. at 30. Furthermore, because Liu was not an individual serving a public function or working for a quasi-governmental entity, the demand letter did not implicate public interests, such that it would not be defamatory. Id. at 31. Third, it would be premature to conclude that the Noerr-Pennington doctrine applies because the recipients of the demand letters are not governmental entities, none of the statements in the demand letters implicate the policy rationales underlying the doctrine, and the sham exception is inapplicable to this controversy. Id. at 33-35. Finally, statements in the demand letters appear not to be motivated by malice but rather by a desire to protect Counterclaim Defendants’ legitimate business interests, and therefore an award of punitive damages is unjustified. Id. at 37.

LEGAL STANDARD A district court “may accept, reject, or modify, in whole or in part, the findings or recommendations made by the magistrate judge.” 28 U.S.C. § 636(b)(1); see also FED. R. CIV. P. 72(b). A district court “shall make a de novo determination of those portions of the report or specified proposed findings or recommendations to which objection is made.” 28 U.S.C. § 636(b)(1)(C); see also FED. R. CIV. P.

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Styleline Studios International Limited v. Litvack, Counsel Stack Legal Research, https://law.counselstack.com/opinion/styleline-studios-international-limited-v-litvack-nyed-2025.