Thelen Oil Company, Inc. v. Fina Oil & Chemical Company, a Corporation

962 F.2d 821, 22 U.S.P.Q. 2d (BNA) 1554, 1992 U.S. App. LEXIS 7762, 1992 WL 80987
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 24, 1992
Docket91-3046, 92-1111
StatusPublished
Cited by10 cases

This text of 962 F.2d 821 (Thelen Oil Company, Inc. v. Fina Oil & Chemical Company, a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thelen Oil Company, Inc. v. Fina Oil & Chemical Company, a Corporation, 962 F.2d 821, 22 U.S.P.Q. 2d (BNA) 1554, 1992 U.S. App. LEXIS 7762, 1992 WL 80987 (8th Cir. 1992).

Opinion

FAGG, Circuit Judge.

Thelen Oil Company, Inc. (Thelen) brought this action against Fina Oil & Chemical Company (Fina) under the Petroleum Marketing Practices Act (PMPA), 15 U.S.C. §§ 2801-2841 (1988), contending Fina wrongfully terminated a franchise agreement between them. Fina counterclaimed against Thelen asserting violations under certain provision of the Lanham Act, 15 U.S.C. §§ 1114, 1117, 1125(a) (1988), breach of a distributor sales contract, and breach of a service station ground lease. The district court refused to submit Fina’s Lanham Act claim to the jury. The jury found against Thelen on its PMPA claim and awarded Fina $103,000 on its breach of contract claim. Thelen does not appeal the jury’s verdict. Fina appeals the district court’s refusal to submit its Lanham Act claim to the jury and the district court’s denial of attorney fees. We affirm in part, reverse in part, and remand for further proceedings consistent with this opinion.

The facts in this case are not complicated. Thelen and Fina entered into a distributor sales contract under which Thelen agreed to purchase Fina gasoline to sell at various Thelen convenience stores and service stations. The contract included a franchise agreement allowing Thelen to sell the gasoline under the Fina trademark at certain Fina-branded service stations. The gasoline Thelen sold through its convenience stores could not carry the Fina trademark. Later, Thelen and Fina entered into a ground lease for a Fina-brand-ed service station in Burnsville, Minnesota. Under the terms of the lease, Fina could cancel the lease and take possession of the station should the franchise agreement be terminated for any reason. Because The-len sold non-Fina gasoline under the Fina trademark and failed to purchase a sufficient amount of Fina gasoline, Fina can-celled the distributor sales contract and franchise agreement. Fina also sought to cancel the Burnsville ground lease and take possession of the Burnsville station. This lawsuit followed.

On appeal, Fina contends the district court committed error in refusing to submit its Lanham Act claim to the jury. We agree. The Fina name and logo are registered trademarks. The Lanham Act prohibits the unauthorized use of a registered trademark when selling a good or service if using the trademark is likely to mislead or deceive consumers. 15 U.S.C. §§ 1114, 1125(a). Fina introduced evidence showing the Fina name and logo are trademarks for Fina gasoline, and Thelen sold non-Fina gasoline from Fina-branded service stations and pumps. The sale of the non-Fina gasoline under the Fina name would likely produce customer confusion. Franchised Stores, Inc. v. Winter, 394 F.2d 664, 668 (2d Cir.1968). Thus, in presenting this evidence, Fina made a prima facie showing that Thelen violated the Lanham Act. Lois Sportswear, U.S.A., Inc. v. Levi Strauss & Co., 799 F.2d 867, 871 (2d Cir.1986); 15 U.S.C. §§ 1114, 1125(a); see Metric & Multistandard Components v. Metric’s, Inc., 635 F.2d 710, 714 (8th Cir.1980). Thelen, however, maintains Fina consented to the sale of the non-Fina gasoline under the Fina trademark. If so, Thelen has a valid defense to Fina’s Lan-ham Act claim. 15 U.S.C. § 1114(1). Nevertheless, whether Fina consented to the sale is a question of fact for the jury. We thus conclude the district court committed error in failing to submit Fina’s Lanham Act claim to the jury.

Thelen contends the district court nonetheless properly refused to submit Thelen’s Lanham Act claim to the jury because any damages under the Lanham Act would duplicate the damages Fina sought under its breach of contract claim. We disagree. “Under the Lanham Act [Fina] may recover as damages for trademark infringement (1) [Thelen’s] profits, (2) any *823 damages sustained by [Fina], and (3) the costs of the action.” Tonka Corp. v. Tonk-A-Phone, Inc., 805 F.2d 793, 794 (8th Cir.1986); 15 U.S.C. § 1117(a). Under Fina’s breach of contract claim, Fina sought lost profits based on Thelen’s failure to purchase a minimum number of gallons of Fina gasoline. The district court did not instruct the jury that Fina could recover Thelen’s profits or additional damages if the jury found Thelen sold mis-branded gasoline under the Fina trademark without Fina’s consent. Based on the district court’s instructions, the jury could only award Fina damages for Thelen’s failure to purchase the minimum amount of gasoline required by the distributor sales contract. Thus, the jury’s award does not cover the full remedy available to Fina under the Lanham Act, namely, Thelen’s profits, the costs of the action, and whatever additional damages Fina can prove resulted from Thelen’s misuse of the Fina trademark.

Thelen also contends Fina’s Lanham Act claim is barred by the doctrine of laches. Thelen did not assert this defense in the district court, however, and “ ‘defenses not raised or litigated in the trial court cannot be urged for the first time on appeal.’ ” Morrow v. Greyhound Lines, Inc., 541 F.2d 713, 724 (8th Cir.1976) (quoted case omitted). We thus decline to consider The-len’s laches defense.

Fina’s second contention is that the district court committed error in denying Fina attorney fees under the PMPA. The PMPA provides, “[T]he [district] court may, in its discretion, direct that reasonable attorney and expert witness fees be paid by the franchisee if the court finds [the franchisee’s] action is frivolous.” 15 U.S.C. § 2805(d)(3). Fina contends The-len’s PMPA claim was frivolous and the district court abused its discretion in refusing to award Fina attorney fees. We disagree. Thelen presented sufficient evidence for the district court to submit The-len’s PMPA claim to the jury. Fina, however, asserts the jury's general verdict against Thelen shows “Thelen started a lawsuit under false claims and failed to present any evidence at trial to justify its complaint.” Fina reads too much into the jury’s verdict. Thelen’s PMPA claim was weak, but Thelen presented some evidence to support it. Although the jury ultimately rejected Thelen’s claim, this alone does not mean Thelen’s claim was frivolous. Having reviewed the record, we conclude the district court did not abuse its discretion in denying Fina attorney fees.

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962 F.2d 821, 22 U.S.P.Q. 2d (BNA) 1554, 1992 U.S. App. LEXIS 7762, 1992 WL 80987, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thelen-oil-company-inc-v-fina-oil-chemical-company-a-corporation-ca8-1992.