Trove Brands, LLC v. TRRS Magnate LLC

District Court, E.D. California·Decided May 3, 2024·No. 2:22-cv-02222·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 TROVE BRANDS, LLC, d/b/a The No. 2:22-cv-02222-TLN-CKD BlenderBottle Company, 12 Plaintiff, 13 ORDER v. 14

15 TRRS MAGNATE LLC, d/b/a Hydra Cup, 16 Defendant. 17

18 19 This matter is before the Court on Plaintiff Trove Brands, LLC d/b/a The BlenderBottle 20 Company’s (“Plaintiff”) Motion for Leave to Amend. (ECF No. 45.) Also pending before the 21 Court is Defendant TRRS Magnate LLC, d/b/a Hydra Cup’s Motion to Modify the Scheduling 22 Order (“Defendant”) and Plaintiff’s Cross-Motion to Modify the Pretrial Scheduling Order. (ECF 23 Nos. 66, 71.) All motions have been fully briefed.1 For the reasons set forth below, the Court 24 GRANTS Plaintiff’s motion for leave to amend (ECF No. 45), GRANTS Defendant’s motion to 25 modify (ECF No. 66), and GRANTS Plaintiff’s motion to modify (ECF No. 71). 26 /// 27 1 On April 1, 2024, the Court DENIED Defendant’s Motion to Strike Plaintiff’s Reply 28 Brief. (ECF No. 95.) 1 I. FACTUAL AND PROCEDURAL BACKGROUND 2 This case arises out of an intellectual property dispute. Plaintiff is a Utah limited liability 3 company and Defendant is a California limited liability company. (ECF No. 19 at 2–4.) Both 4 parties are in the business of manufacturing and selling shaker bottles. (Id.) A shaker bottle uses 5 an agitator to mix powder with liquids. (ECF No. 78.) Plaintiff, using innovative technology and 6 design, alleges it created shaker bottles that “revolutionized the way dietary supplements are 7 mixed and consumed.” (ECF No. 19 at 3.) Based on its unique design, Plaintiff obtained various 8 design patents and trademark registration numbers from the United States Patent and Trademark 9 Office. (Id. at 3–6.) 10 Plaintiff alleges Defendant manufactures and sells shaker bottles that infringe on 11 Plaintiff’s various design patents and unique trade dress. (Id. at 4.) Accordingly, beginning in 12 January 2021, Plaintiff sent Defendant cease and desist letters. (Id. at 17.) After these letters 13 proved to be unsuccessful (see id. at 18), Plaintiff initiated the instant action on December 14, 14 2022. (ECF No. 1.) Plaintiff filed the operative First Amended Complaint (“FAC”) on March 3, 15 2023, asserting claims against Defendant for: (1) design patent infringement of its Bottle, Lid, and 16 Container Patents, in violation of 35 U.S.C. § 271; (2) trade dress infringement in violation of 15 17 U.S.C. § 1125(a); (3) trade dress infringement in violation of 15 U.S.C. § 1114; (4) false 18 designation of origin and unfair competition in violation of 15 U.S.C. § 1125(a); and (5) unfair 19 competition in violation of California Business and Professions Code §§ 17200, et seq. (ECF No. 20 19.) 21 On January 12, 2024, in light of information Plaintiff learned through discovery, Plaintiff 22 filed the instant motion for leave to amend the FAC. (ECF No. 45.) Defendant and Plaintiff also 23 filed cross-motions to modify the Court’s scheduling order to conduct additional factual 24 discovery on February 12, 2024 and February 26, 2024, respectively. (ECF Nos. 66, 71.) The 25 Court will first address Plaintiff’s motion for leave to amend and will then address the parties’ 26 motions to modify the Court’s scheduling order. 27 /// 28 /// 1 II. MOTION FOR LEAVE TO AMEND 2 A. STANDARD OF LAW 3 Granting or denying leave to amend a complaint, rests in the sound discretion of the trial 4 court. Swanson v. U.S. Forest Serv., 87 F.3d 339, 343 (9th Cir. 1996). When a court issues a 5 pretrial scheduling order that establishes a timetable to amend, Federal Rule of Civil Procedure 6 (“Rule”) 16 governs amendments to a pleading. Coleman v. Quaker Oats Co., 232 F.3d 1271, 7 1294 (9th Cir. 2000). Under Rule 16, a plaintiff must show good cause for not having amended 8 the pleading before the time specified in the pretrial scheduling order. Id. The good cause 9 standard primarily considers the diligence of the party seeking the amendment. Johnson v. 10 Mammoth Recreations, Inc., 975 F.2d 604, 609 (9th Cir. 1992). The focus of the inquiry is on the 11 reasons why the moving party seeks to modify the complaint. Id. If the moving party was not 12 diligent, then good cause cannot be shown, and the inquiry should end. Id. 13 Even if the good cause standard is met under Rule 16, the Court has discretion to refuse 14 amendment if it finds reasons to deny leave to amend under Rule 15(a). Id. at 610. Under Rule 15 15(a)(2), “a party may amend its pleading only with the opposing party's written consent or the 16 court’s leave,” and the “court should freely give leave when justice so requires.” Fed. R. Civ. P. 17 15(a)(2). The Ninth Circuit considers five factors in determining whether leave to amend should 18 be given: “(1) bad faith[;] (2) undue delay[;] (3) prejudice to the opposing party[;] (4) futility of 19 amendment; and (5) whether [the] plaintiff has previously amended his complaint.” In re W. 20 States Wholesale Nat. Gas Antitrust Litig., 715 F.3d 716, 738 (9th Cir. 2013) (citing Allen v. City 21 of Beverly Hills, 911 F.2d 367, 373 (9th Cir. 1990)). Of these, “the consideration of prejudice to 22 the opposing party … carries the most weight.” Eminence Cap., LLC v. Aspeon, Inc., 316 F.3d 23 1048, 1052 (9th Cir. 2003) (per curiam). The party opposing leave to amend bears the burden of 24 showing prejudice. DCD Programs, Ltd. v. Leighton, 833 F.2d 183, 187 (9th Cir. 1987). 25 /// 26 /// 27 /// 28 /// 1 B. ANALYSIS 2 Plaintiff seeks leave to amend the FAC to add Thomas Raymus as a defendant to this 3 action. (ECF No. 45-1 at 2.) Plaintiff asserts such amendment is “based on newly discovered 4 evidence that Raymus personally directed Defendant … to perform the infringing acts that are the 5 subject of this action[,]” which Plaintiff discovered at Raymus’s deposition on December 13, 6 2023. (Id.) 7 In opposition, Defendant argues Plaintiff’s motion is untimely because Plaintiff “has 8 known or reasonably should have known that Raymus was [Hydra Cup’s] CEO and only 9 employee as far back as April 2023.” (ECF No. 52 at 7.) Further, Defendant asserts granting 10 leave to amend will unfairly prejudice it and Raymus by “disrupting the opportunity for adequate 11 defense and potentially prolonging the litigation.” (Id. at 4.) 12 i. Rule 16 13 The Court applies Rule 16 because the Court’s deadline to file amended pleadings was 14 May 2, 2023 (ECF No. 29), and Plaintiff filed this instant motion for leave to amend on January 15 12, 2024 (ECF No. 45). Plaintiff argues it meets Rule 16’s good cause requirement because 16 Plaintiff did not learn of Raymus’s extensive involvement in the alleged infringement until 17 Raymus’s December 13, 2023 deposition and was subsequently diligent in seeking amendment. 18 (ECF No.

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Trove Brands, LLC v. TRRS Magnate LLC, (E.D. Cal. 2024).

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