Su v. World Kuk Sool Association Inc

CourtDistrict Court, S.D. Texas
DecidedDecember 23, 2024
Docket4:23-cv-03215
StatusUnknown

This text of Su v. World Kuk Sool Association Inc (Su v. World Kuk Sool Association Inc) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Su v. World Kuk Sool Association Inc, (S.D. Tex. 2024).

Opinion

□ Southern District of Texas ENTERED UNITED STATES DISTRICT COURT December 23, 2024 SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION

Sung Jin Su, § Plaintiff/Counter-Defendant, § § v. § Civil Action H-238-3215 § Gaya Won, LLC, § World Kuk Sool Association, Inc, § and WKSA, LLC, § Defendants /Counter-Plaintiffs/ § Third-Party Plaintiffs, § § § § Alex Paul and Chris Pak, § Third-Party Defendants. §

MEMORANDUM AND RECOMMENDATION This case has been referred to the undersigned magistrate judge pursuant to 28 U.S.C. § 636(b)(1). ECF No. 77. Several motions are pending before the court: Counter Defendant Sung Jin Su’s (Su’s) Motion to Dismiss, ECF No. 89; Sus Motion for Summary Judgment, ECF No. 105; Third-Party Defendant Chris Pak’s (Pak’s) Motion to Dismiss, ECF No. 90; Pak’s Motion for Summary Judgment, ECF No. 104; Su’s Motion to Strike, HCF No. 102; Defendants World Kuk Sool Association, Inc., WKSA, LLC, and Gaya Won LLC’s Motion for Summary Judgment, ECF No. 109; Defendants’ Motion to Strike Experts, ECF No. 110; and Su’s Motion to Exclude Testimony, ECF No. 108. The court recommends that: Su’s Motion for Summary Judgment, ECF No. 105, be GRANTED in part and DENIED in part; Pak’s Motion for Summary Judgment, ECF No. 104, be

GRANTED; Su and Pak’s Motions to Dismiss, ECF Nos. 89 and 90, be DENTED as MOOT; Su’s Motion to Strike, ECF No. 102, be DENIED as MOOT; Defendants’ Motion for Summary Judgment, ECF No. 109, be GRANTED in part and DENIED in part; and Defendants’ Motion to Strike Experts, ECF No. 110, and Su’s Motion to Exclude Testimony, ECF No. 108, be DENIED without prejudice to refiling as motions in limine before the trial judge. Accordingly, the court recommends that all claims by all parties be dismissed, except for Su’s claim based on violation of his right of publicity and Defendants’ counterclaim against Su for trademark infringement. I, Background and Procedural Posture This suit involves a family business dispute between father and son in the Korean martial arts field. Sung Jin Su filed suit in California state court against three companies that are run by his family: World Kuk Sool Association, Inc., WKSA, LLC, and Gaya Won LLC (collectively WKSA),. ECF No, 55, The suit was removed to federal court and transferred to the Southern District of Texas. See ECF No. 39. Thereafter, WKSA brought counterclaims against Su and third-party claims against Chris Pak, who is a former WKSA franchisee and who is proceeding pro se, and Alex Paul, who is Su’s lawyer and a former WKSA member. ECF No. 87. Su and Pak filed motions to dismiss and for summary judgment as to all WKSA’s claims against them, and WKSA filed a motion for summary judgment on Su’s claims against it. Paul’s motions are the subject of a separate Memorandum & Recommendation in which the court recommends dismissal for lack of personal jurisdiction over Paul. ECF No. 138. Paul’s motions are therefore not discussed herein. Su’s Second Amended Complaint states that WKSA runs a “multi-million dollar company practicing and prom[oting] traditional Korean martial arts.” ECF No. 55 | 12. According to

WKSA, World Kuk Sool Association, Inc. owns the intellectual property at issue in this case; WKSA, LLC is a franchisor that licenses franchisees to operate WKSA schools and use the WKSA name; and Gaya Won LLC sells KUK SOOL WON merchandise and services. WKSA’s Third Am. Answer, ECF No. 87 at 2. In-Hyuk Suh, Su’s father, established WKSA decades ago, and In-Hyuk Suh leads WKSA today. Su states in his Second Amended Complaint that he moved to California from South Korea in 1986 to work for WKSA and help build the WKSA business, ECF No. 55, { 14. Su states that, for several decades, WKSA unconditionally agreed that Su would be the next President and Director of WKSA and that he would be WKSA’s “next generation.” Su’s Second Am. Verified Compl., ECF No. 55 § 15. According to Su, beginning in 1995 and continuing “throughout the years,” WKSA publicized to the world that Su would be WKSA’s next leader. Id. 4 16. Su also states that WKSA promised Su “an equitable share of all assets, including specific real estate [in Texas].” Su’s Resp. to WKSA’s M. Summ. J., HCF No. 117 at 3. In 2007, Su signed a document agreeing to perform specific duties on behalf of WKSA and to receive a set monthly salary in exchange for his services. ECF No. 109-1 at 146. According to WKSA, Pak is a former WKSA franchisee who is now Swu’s assistant. See Roper Decl., ECF No. 118-1 at 2. Paul is an attorney who represents Su in this suit as well as a former WKSA black belt student. WKSA’s Third Am. Answer, ECF No, 87 { 61. Su brings causes of action against WKSA for breach of contract, promissory estoppel, wrongful termination, unjust enrichment, intentional infliction of emotional distress, breach of his right of publicity, unfair competition, and defamation. ECF No. 55, Su’s claims arise generally from his termination from

employment with WKSA in March 2022. The cause for Su’s termination is disputed between the parties but is not directly material to the court’s instant recommendations. After his termination, Su started a competing Korean martial arts business called Mirae Kuk Sool or United Mirae Kuk Sool. Pak now works with Su and no longer has a WKSA franchise. Su also states in his Second Amended Complaint that WKSA wrongfully continued to use Sus identity and image for commercial purposes after his termination. ECF No. 55 §/§j 89-96. Su states that WKSA, through Su’s brother Alex Suh, made false and offensive statements about Su. ECF No. 55 § 88. Portions of this dispute also arise from the publication of details of this lawsuit in various letters and on social media to the Korean martial arts community. WKSA’s claims against Su and Pak arise generally from Su and Pak’s alleged unlawful use of WKSA’s intellectual property and trade secrets, and their alleged breaches of contract. WKSA brings claims for trademark and copyright infringement, cybersquatting, misappropriation of trade secrets, civil conspiracy, breach of contract, and tortious interference with an existing contract. WKSA has published several textbooks. These books are all titled Kuk Sool Won Textbook with a corresponding volume number. Roper Decl., ECF No. 118-1 p. 2, 8. WKSA states that it had Kuk Sool Won Textbook Volume 5 in production while Su was still employed by WKSA. But Su wrote his own Kuk Sool Won Textbook Volume 5, allegedly with Pak, while still employed by WKSA. Then, shortly after Su’s termination, he “began marketing a book titled Kuk Sool Won Textbook Volume 5.” Id. | 7. It is unclear whether WKSA had published its Volume 5 textbook prior to Sw’s book’s publication. In any event, WKSA alleges that the publication of Su’s book violated WKSA’s intellectual property

4.

rights, and that Su and Pak’s competing business is a breach of contract. The court provides additional relevant facts in the analysis below. The court turns next to the pending motions but will first make a few prefatory comments about the briefing and evidence presented to the court. The parties have presented the court with hundreds of pages of briefing and argument. Neither side has been willing to concede a single point, even when it is clear to the court that there is no evidence or law in support of their position. The parties have objected to evidence, objected to the other side’s filmes, and have generally engaged in a highly contentious legal dispute. That said, the court has read and carefully considered all the parties’ filings. For reasons of judicial economy, however, the court has not addressed in writing every single argument that the parties have made. The court has addressed only those legal and factual issues that are relevant and material to the resolution of the pending motions.

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Su v. World Kuk Sool Association Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/su-v-world-kuk-sool-association-inc-txsd-2024.