Totalcare Healthcare Services, LLC v. Total MD, LLC

CourtDistrict Court, N.D. Texas
DecidedNovember 29, 2022
Docket4:22-cv-00789
StatusUnknown

This text of Totalcare Healthcare Services, LLC v. Total MD, LLC (Totalcare Healthcare Services, LLC v. Total MD, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Totalcare Healthcare Services, LLC v. Total MD, LLC, (N.D. Tex. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS FORT WORTH DIVISION

TOTALCARE HEALTHCARE SERVICES, LLC,

Plaintiff,

v. No. 4:22-CV-0789-P

TOTALMD, LLC,

Defendant.

OPINION & ORDER Before the Court is Plaintiff’s Motion for Preliminary Injunction. ECF No. 7. For the following reasons, the Court GRANTS the Motion. FACTUAL & PROCEDURAL BACKGROUND In 2008, Plaintiff Totalcare Healthcare Services—a family medicine and emergency care company—first used the unregistered mark TOTALCARE in the greater Dallas-Fort Worth area. Ten years later, Defendant Total MD, LLC, an urgent care company historically marketed towards men—started using the mark TOTALCARE for its new brand of urgent care centers in the Austin, Texas area. ECF No. 33 at 30–32. In 2021, Defendant opened a “TotalCare Urgent Care” location on the same street as one of Plaintiff’s “Totalcare Family Medicine” locations about half a mile away. Plaintiff sued and now seeks to enjoin Defendant’s use of the mark TOTALCARE in specific markets in various North Texas counties. ECF No. 7. The Court held a preliminary injunction hearing on the matter on October 26,2022. Plaintiff presented the following evidence. Plaintiff first called Robert Sek—Defendant’s founder and Chief Executive Officer—to the stand. ECF No. 33 at 91—233. Sek stated that Defendant chose the mark TOTALCARE to expand its consumer market which was traditionally targeted at men under their “TotalMen’s” brand. Id. at 31–36. Sek elaborated on Defendant’s strategy for opening new locations and explained Defendant’s plans to expand into the North Texas market. Id. at 43. Sek stated multiple times that he did not know of Plaintiff’s senior use of the mark in the greater Dallas-Fort Worth area. Id. at 58. Plaintiff next called Drew Valcourt—Defendant’s Vice President of Development—to the stand. Id. at 65. Valcourt testified that he was previously the Director of Real Estate and Construction. Id. at 65—67. After discussing Defendant’s methods for acquiring and building new locations, Valcourt also stated that he did not know of any of Plaintiff’s similarly named locations at any time before this suit was filed. Id. at 88. Plaintiff’s next witness was its founder, Wes Saad, M.D. ECF No. 33 at 92. Dr. Saad discussed the origin of Plaintiff’s name and how he intentionally chose it in 2008 because “it would be a more distinctive name, a more memorable name.” Id. at 95. Dr. Saad discussed how he later combined the two-word mark TOTAL CARE into a single-word mark TOTALCARE after a trademark dispute with another medical care company, CareNow. Id. at 96. Dr. Saad noted that at some of their locations, the TOTALCARE logo stands alone with no descriptive text below. Id. at 98. Dr. Saad discussed Plaintiff’s expansion into new fields—including emergency rooms and behavioral health clinics—in North Texas and the success of the brand’s reputation in the community. Id. Dr. Saad also discussed instances when THS defended their mark against other companies seeking to use it. Id. at 114. Finally, Dr. Saad described his shock and dismay at Defendant’s opening of similarly named facilities in the same markets—and even on the same street—as Plaintiff’s facilities. Id. at 113-16. Dion Lampe—Plaintiff’s Director of Brand Marketing—next took the stand and discussed Plaintiff’s marketing efforts in the greater Dallas- Fort Worth area. Id. at 140–65. Lampe discussed the intentional and targeted marketing efforts THS makes on a yearly basis to garner goodwill and name recognition in the community. Id. These efforts included major sponsorships of Texas Christian University and other universities in the North Texas market. Id. at 160–65. Finally, Stephanie LeBlanc—Plaintiff’s current Chief Executive Officer—took the stand. LeBlanc testified about Plaintiff’s positive reputation in the community. She testified that individuals have approached her and congratulated her on Defendant’s “newest facility on Hulen [Street].” Id. at 219. Lastly, LeBlanc testified about a recorded call from a customer who was confused over a referral and billing between a “TotalMens Urgent Care” and a “Totalcare Behavioral Care” location. Pl.’s Exhibit 101, ECF No. 33 at 226–27. The individual on the call was confused about the two companies and their related websites and names. Id. Further, the caller was frustrated and expressed disappointment with service and billing on multiple fronts. Id. Defendant brought no witnesses to the stand and the motion is thus ripe for the Court’s review. LEGAL STANDARD A. Preliminary Injunction A preliminary injunction is an “extraordinary remedy” and is granted only if the movant carries its burden on four requirements. Nichols v. Alcatel USA, Inc., 532 F.3d 364, 372 (5th Cir. 2008). The movant must show: “(1) a substantial likelihood of success on the merits; (2) a substantial threat of irreparable injury; (3) the threatened injury to the movant outweighs the threatened harm to the party sought to be enjoined; and (4) granting the injunctive relief will not disserve the public interest.” City of Dall. v. Delta Airlines, Inc., 847 F.3d 279, 285 (5th Cir. 2017) (quotation omitted). “The decision to grant or deny a preliminary injunction is discretionary with the district court.” Miss. Power & Light Co. v. United Gas Pipe Line Co., 760 F.2d 618, 621 (5th Cir. 1985). ANALYSIS A. Likelihood of Success on the Merits To show a likelihood of success on the merits, a plaintiff must present a prima facie case, but need not prove that it is conclusively entitled to summary judgment. Daniels Health Scis., L.L.C. v. Vascular Health Scis., L.L.C., 710 F.3d 579, 582 (5th Cir. 2013). Before issuing an injunction for trademark infringement, the Court must consider whether: (1) the claimed mark is eligible for protection; (2) the party seeking protection is the mark’s senior user; (3) there is a likelihood of confusion between the plaintiff’s mark and the defendant’s mark; and (4) this likelihood of confusion will cause the plaintiff irreparable injury for which there is no adequate legal remedy. Paulsson Geophysical Servs., Inc. v. Sigmar, 529 F.3d 303, 309 (5th Cir. 2008). 1. Whether the mark is eligible for protection A trademark “is established by use, not by registration.” Union Nat’l Bank of Tex. v. Union Nat’l Bank of Tex., 909 F.2d 839, 842 (5th Cir. 1990). Unregistered marks are “governed generally by the same principles that qualify a mark for registration under the Lanham Act.” Bd. Supervisors La. State Univ. Agric. & Mech. Coll. v. Smack Apparel Co., 550 F.3d 465, 475 (5th Cir. 2008). Under the Lanham Act, only “distinctive” marks are eligible for protection. Id. To determine the distinctiveness of the mark, courts must determine whether it is “(1) generic; (2) descriptive; (3) suggestive; (4) arbitrary; or (5) fanciful.” Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763, 768 (1992). In general, the first two categories—generic and descriptive— are not distinctive while the last three categories—suggestive, arbitrary, and fanciful—are distinctive. Id. Notably, “[t]hese categories, like the tones in a spectrum, tend to blur at the edges and merge together.” Zatarains, Inc. v. Oak Grove Smokehouse, Inc., 698 F.2d 786, 790 (5th Cir. 1983).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Westchester Media Co v. PRL USA Holdings In
214 F.3d 658 (Fifth Circuit, 2000)
C.P. Interests, Inc. v. California Pools, Inc.
238 F.3d 690 (Fifth Circuit, 2001)
Paulsson Geophysical Services, Inc. v. Sigmar
529 F.3d 303 (Fifth Circuit, 2008)
Byrum v. Landreth
566 F.3d 442 (Fifth Circuit, 2009)
Xtreme Lashes, LLC v. Xtended Beauty, Inc.
576 F.3d 221 (Fifth Circuit, 2009)
Hanover Star Milling Co. v. Metcalf
240 U.S. 403 (Supreme Court, 1916)
United Drug Co. v. Theodore Rectanus Co.
248 U.S. 90 (Supreme Court, 1918)
Two Pesos, Inc. v. Taco Cabana, Inc.
505 U.S. 763 (Supreme Court, 1992)
Gruma Corporation v. Mexican Restaurants, Inc.
497 F. App'x 392 (Fifth Circuit, 2012)
Thomas Abraham v. Alpha Chi Omega
708 F.3d 614 (Fifth Circuit, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
Totalcare Healthcare Services, LLC v. Total MD, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/totalcare-healthcare-services-llc-v-total-md-llc-txnd-2022.