Suntree Technologies, Inc. v. Ecosense International, Inc.

693 F.3d 1338, 104 U.S.P.Q. 2d (BNA) 1307, 2012 WL 3832458, 2012 U.S. App. LEXIS 18658, 23 Fla. L. Weekly Fed. C 1497
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 5, 2012
Docket11-13916
StatusPublished
Cited by72 cases

This text of 693 F.3d 1338 (Suntree Technologies, Inc. v. Ecosense International, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Suntree Technologies, Inc. v. Ecosense International, Inc., 693 F.3d 1338, 104 U.S.P.Q. 2d (BNA) 1307, 2012 WL 3832458, 2012 U.S. App. LEXIS 18658, 23 Fla. L. Weekly Fed. C 1497 (11th Cir. 2012).

Opinion

ALARCÓN, Circuit Judge:

Suntree Technologies, Inc. (“Suntree”) appeals from the district court’s order denying its motion for summary judgment and granting the motions for summary judgment filed by Ecosense International, Inc. (“Ecosense”) and George Dussich with *1341 regard to Suntree’s claims of false designation of origin and false advertising under Section 43(a) of the Lanham Act, common law trademark infringement and unfair competition, and deceptive and unfair trade practices pursuant to the Florida Deceptive and Unfair Trade Practices Act (“FDUPTA”), codified at Fla. Stat. § 501.201 et seq. (2012). Suntree contends that the district court erred in concluding that Suntree failed to establish that Eco-sense and Dussich directly or contributorily infringed on their trademark because it failed to present evidence of actual or of a likelihood of confusion. We disagree and affirm.

I

Suntree manufactures a product called baffle boxes, which were described by Thomas Happel, the president of Suntree, in his declaration as “stormwater treatment structures that remove organic debris, trash, oil and other pollutants from stormwater before the stormwater reaches lakes, rivers and streams.” Suntree is the most well-known storm filtration product supplier in Florida. Suntree’s baffle boxes have been certified by New Jersey’s Corporation for Advanced Technologies program (“NJCAT”), a certification that is required to sell baffle boxes in New Jersey and in a number of other states. Florida recognizes NJCAT pre-approval of products. In his declaration, Happel alleged that “Suntree uses its NJCAT certification as a selling point for its baffle boxes because relatively few stormwater equipment companies have such certifications.”

Ecosense also manufactures baffle boxes. It installed its first baffle box in 2008. George Dussich is the president and majority shareholder of Ecosense. Randy Burden is its vice-president and minority shareholder.

In the fall of 2008, the City of West Melbourne, Florida (“the City”), began soliciting bids for the City of West Melbourne Stormwater Quality Retrofit Project (“The CWM Project”). Contractors wishing to bid on the project obtained a packet of documents called the Bidding and Construction Contract Documents and Technical Specifications (“bidding documents”). The specifications in the bidding documents included the following requirement:

NUTRIENT SEPARATING BAFFLE BOXES TO BE PROVIDED BY SUN-TREE TECHNOLOGIES, INC. OR APPROVED EQUAL. CONSTRUCTION DETAILS AND SPECS ARE IDENTIFIED BY SUNTREE TECHNOLOGIES, INC. APPROVED EQUAL SHALL MEET OR EXCEED SUNTREE TECHNOLOGIES, INC. SPECIFICATIONS.

The specifications listed Suntree baffle boxes as the “proposed baffle box manufacturer/model” for each of the nine baffle boxes to be installed. Lawrence Jarvis, an employee of Jones Edmunds, who was hired by the County as the project engineer for the CWM Project, declared in his deposition that the City was not permitted under Florida law to designate Suntree as the sole manufacturer of baffle boxes absent a showing of special circumstances.

The bid solicitation form included in the bidding documents required bidders to list the subcontractors and suppliers they relied upon in calculating their bids. It stated:

The Undersigned states that the following is a full and complete list of the proposed subcontractors and suppliers on this Project and the class of work to be performed by each and that such list will not be added to nor altered without written consent to the Owner through the Engineer.

Article 11 of the instructions to bidders, included in the bidding documents, provided as follows:

*1342 The Contract, if awarded, will be on the basis of materials and equipment specified or described in the Bidding Documents without consideration of possible substitute or “or equal” items. Whenever it is specified or described in the Bidding Documents that a substitute or “or equal” item of material or equipment may be furnished or used by if acceptable to the Engineer, application for such acceptance will not be considered by the Engineer until after the Effective Date of the Agreement.

(emphasis added). Section 6.05 of the bidding documents provided that “[w]henever an item of material or equipment is specified or described in the Contract Documents by using the name of a proprietary item or the name of a particular Supplier, the specification or description is intended to establish the type, function, appearance and quality required.” Section 6.05 also set forth the process a contractor must go through in order to gain approval for an “or equal” item of material or equipment. Approval was in the sole discretion of Jarvis, as the project’s engineer. Rather than incurring the expense of pre-approving an additional, less expensive supplier, the engineers for the City and County decided to use Suntree’s name in the bidding specifications. If the contractor who was awarded the project found a less expensive baffle box that was approved to be of equal quality to Suntree’s, the benefit of the reduction in cost would go to the contractor.

Derrico Construction Corp. (“Derrico”), a general contractor, submitted a bid for the CWM Project that was significantly lower than the other bidders. It was also approximately $85,000 less than the project engineer’s estimate. Mark Cattey, the estimator for Derrico who assembled Derrico’s bid, alleged in his deposition that, in conformity with the specifications in the bidding documents, Derrico’s bid listed Suntree as the supplier for the baffle boxes because Derrico “did not know if an alternate would be accepted after award so [they] had to be covered to install [Sun-tree’s] product” if necessary.

Carolina Alvarez, an engineer for the County, who worked on the CWM Project, reviewed Derrico’s bid. Derrico’s bid was accepted. At a pre-construction meeting in mid-January 2009, Derrico requested approval of Ecosense’s baffle boxes as an “or equal” substitute as was permitted in the bidding documents distributed to potential bidders when the City was soliciting bids. Jarvis reviewed the specifications of the Ecosense baffle boxes and inspected an Ecosense baffle box installed in another municipality before approving it as a substitute for Suntree’s product. Derrico installed Ecosense baffle boxes.

After the project was completed, Alvarez requested that Ecosense prepare a power point presentation to train the City’s personnel on the proper cleaning and maintenance procedures for baffle boxes. The presentation showed baffle boxes being cleaned and maintained by municipal workers for the City of Rock-ledge, a city close to Ecosense’s office. Ecosense had a good relationship with the City of Rockledge and their maintenance crew was capable and well-trained. Because both Ecosense and Suntree baffle boxes had been installed in the City of Rockledge, the presentation included photographs of both Ecosense and Suntree baffle boxes. Suntree’s name was not included anywhere in the maintenance presentation. The power point presentation was given to the City of West Melbourne and the City of Titusville.

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693 F.3d 1338, 104 U.S.P.Q. 2d (BNA) 1307, 2012 WL 3832458, 2012 U.S. App. LEXIS 18658, 23 Fla. L. Weekly Fed. C 1497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suntree-technologies-inc-v-ecosense-international-inc-ca11-2012.