Thousand Island Park Corp. v. Welser

314 F. Supp. 3d 391
CourtDistrict Court, N.D. New York
DecidedJune 14, 2018
Docket5:18–CV–117
StatusPublished
Cited by5 cases

This text of 314 F. Supp. 3d 391 (Thousand Island Park Corp. v. Welser) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thousand Island Park Corp. v. Welser, 314 F. Supp. 3d 391 (N.D.N.Y. 2018).

Opinion

DAVID N. HURD, United States District Judge *393I. INTRODUCTION

Plaintiff Thousand Island Park Corporation ("TIPC" or "plaintiff"), the owner of a restaurant and store on Wellesley Island known as "The Guzzle," has filed this trademark infringement and breach of contract action against defendant Mark A. Welser ("Welser" or "defendant"), the man plaintiff hired to operate the restaurant during the summer 2017 tourist season.

According to TIPC's six-count complaint, Welser improperly associated himself with plaintiff's unregistered trademark in violation of the Lanham Act and related state law when he offered for sale unauthorized merchandise bearing The Guzzle's name and logo. Plaintiff also alleges defendant breached various aspects of the parties' written agreement.

Welser has moved to dismiss TIPC's Lanham Act claim pursuant to Federal Rule of Civil Procedure ("Rule") 12(b)(6). Plaintiff opposes and has moved under Rule 15 seeking leave to amend its complaint in the event defendant's motion is granted. Both motions were fully briefed and oral argument was heard on June 6, 2018 in Utica, New York. Decision was reserved.

II. BACKGROUND

TIPC owns and operates Thousand Island Park, a family-oriented summer community established nearly 150 years ago on Wellesley Island in Jefferson County, New York (the "Park"). Plaintiff maintains the Park's grounds and provides various services to the yearly guests who lease the 300 or so seasonal cottages located on the island.

Historically, TIPC's operations included an ice cream shop and candy store known as "The Guzzle," which was located in a multi-use commercial building first erected on the island in 1913. After a fire consumed the original structure in the summer of 2014, plaintiff decided to rebuild and expand its operations to include a deli / restaurant, ice cream shop, candy store, and small grocery store (the "Building").

On April 3, 2017, TIPC entered into a written concession agreement (the "Agreement") with Welser, a resident of nearby Watertown, New York, which granted defendant the right to use the newly reconstructed Building to operate an "Ice Cream Soda Fountain/Lunchroom and Grocery Store ... [that] shall be known and advertised as" The Guzzle. A copy of the Agreement is attached to the complaint as Exhibit A.

In addition to a $6,000 concession fee, the Agreement imposed a variety of obligations on Welser-among other things, it required him to operate The Guzzle between certain dates and for certain hours, to maintain the cleanliness of the restaurant, and to pay for all gas and electricity bills incurred during the summer season. And while the Agreement contemplated a three-year period, it expressly provided that the parties would sit down and re-negotiate after the first year of operations.

*394In addition, the Agreement permitted TIPC to terminate the parties' arrangement "in the exercise of its sole discretion" if Welser committed an "egregious, unremedied misstep," created a nuisance "not cured after written notice in 15 days," or was otherwise responsible for any failure to abide by Park rules and regulations that went "unremedied after notice."

TIPC completed construction of the Building just in time for the summer, and Welser opened The Guzzle for Memorial Day Weekend of 2017. However, in early July plaintiff notified defendant in writing of certain "feedback" from Park residents that plaintiff wanted "addressed as-soon-as [sic ] possible." For instance, plaintiff indicated defendant should start selling "milk and other dairy products," offering "full pizzas," and generally doing a better job cleaning the interior and exterior of the Building. A copy of this request for "Concession Enhancements" is attached to the complaint as Exhibit B.

On July 10, 2017, Welser responded to TIPC's letter with one of his own. Defendant's letter indicated that he had already moved to accommodate certain requests (e.g., milk, eggs, and bread were now stocked on the shelves) and explained that some of the limitations imposed by the Building's design prevented him from taking immediate action on others (e.g., the kitchen's current layout made pizza a difficult item to add to the regular menu). Defendant's letter suggested that requests in the latter category would be better addressed during a sit-down meeting between the parties, which was slated to happen at the end of the first summer season anyway. A copy of defendant's written response is attached to the complaint as Exhibit C.

Thereafter, the relationship between the parties soured. According to TIPC's complaint, in late August plaintiff received a letter from one of The Guzzle's former female employees accusing Welser of sexual harassment and other improprieties. Plaintiff also alleges defendant failed to pay for electricity and cleaning services, and reacted "menacing[ly]" when one of plaintiff's representatives approached him to discuss the issue.

After the Park closed for the season, the parties' attorneys engaged in some back-and-forth communications about whether or not Welser's operation of The Guzzle during 2017 amounted to a breach of the Agreement.1 In the meantime, on December 16 defendant posted on his personal Facebook page a message and accompanying photograph:

Throw back from summer 2017 for those of you who left your extra pictures in our photo booth at the guzzle and who wanted to add to our collage. Tag a friend. Thanks for a great summer. We look forward to seeing you next year. Happy holidays.

A copy of Welser's Facebook post is attached to the complaint as Exhibit M.

On December 22, 2017, TIPC's counsel sent Welser's attorney a letter entitled "Termination of Contract" informing defendant plaintiff had elected to terminate the Agreement "effective January 3, 2018." A copy of this letter is attached to the complaint as Exhibit K.

Following receipt of this letter but before the January 3 termination date, Welser posted on December 25 a message and accompanying photograph on The Guzzle's own Facebook page:

*395Merry Christmas! .... Drink in the air of wonder and excitement, and let it fill your heart full of love. From our family to yours, wishing you the happiest of holidays, and a magical year to come!
Now for something as cool as the chill in the air (which at the moment is 25 degrees!) I am sure you are all looking forward to taking a break from 'shopping'. However. We have something that's going to catch your eye. Remember opening weekend, when the chalkboard was filled with the brightly colored, beautiful signatures of people stopping in to say hello? We promised you something special, and something special we are happy to share!
At the end of the weekend, we snapped a picture. From that image, we were about to create the AWESOME 18x24 poster you see below! This LIMITED edition print [ ] is available for $20 if you are local (Watertown/Island area) and $26 if you would like it shipped to you.

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Bluebook (online)
314 F. Supp. 3d 391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thousand-island-park-corp-v-welser-nynd-2018.