U.S. Structures, Incorporated, a Foreign Corporation v. J.P. Structures, Incorporated, a Michigan Corporation, and Joseph J. Pilat

130 F.3d 1185, 1997 F. App'x 0354P, 45 U.S.P.Q. 2d (BNA) 1027, 1997 U.S. App. LEXIS 34016
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 3, 1997
Docket96-1016
StatusPublished
Cited by207 cases

This text of 130 F.3d 1185 (U.S. Structures, Incorporated, a Foreign Corporation v. J.P. Structures, Incorporated, a Michigan Corporation, and Joseph J. Pilat) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U.S. Structures, Incorporated, a Foreign Corporation v. J.P. Structures, Incorporated, a Michigan Corporation, and Joseph J. Pilat, 130 F.3d 1185, 1997 F. App'x 0354P, 45 U.S.P.Q. 2d (BNA) 1027, 1997 U.S. App. LEXIS 34016 (6th Cir. 1997).

Opinion

ALAN E. NORRIS, Circuit Judge.

Defendants, J.P. Structures, Inc., and Joseph J. Pilat, appeal from the district court’s order granting summary judgment for plaintiff, U.S. Structures, Inc., in a trademark infringement action brought under both the Lanham Act, 15 U.S.C. §§ 1051-1127, and Michigan law. Defendants argue that the district court erred in concluding that they misused U.S. Structures’ trademark, and that they acted willfully in doing so. Defendants also challenge the district court’s award of damages and attorneys’ fees. For the reasons that follow, we affirm the district court on the merits, but reverse and remand as to the court’s award of attorneys’ fees.

I.

In August 1988, defendant Joseph J. Pilat executed a franchise agreement with plaintiff U.S. Structures, Inc. The agreement provided that Pilat would operate a deck construction business under the' name J.P. Structures, Inc., and it authorized him to use U.S. Structures’ trademark, “Archadeek,” and other related trademarks. The franchise operated without problems until February 15, 1994, when U.S. Structures informed Pilat that it would terminate the Archadeek franchise unless the sales royalties required by the agreement were paid within twenty days.

On March 15, 1994, U.S. Structures terminated the franchise agreement for lack of payment. Defendants admit that they continued to use the Archadeek trademark while they attempted to negotiate a settlement of their dispute with U.S. Structures. In addition, it appears that defendants participated in an advertising program which utilized the Archadeek trademark while they were authorized Archadeek franchisees, and that they did not terminate their participation in the program when their franchise was canceled. Defendants received numerous referrals through this program, even though they were no longer authorized to use the Archa-deck trademark.

On June 28, 1994, U.S. Structures sued to enjoin defendants from infringing upon the Archadeek trademark, and to recover damages for past infringements under the Lan-ham Act, 15 U.S.C. §§ 1051-1127. The complaint alleged that defendants continued to “willfully and intentionally” represent to the public that they were an authorized Archa-deck franchise after they received notice that their franchise had been terminated, and that they continued to use the Archadeek trademark and phone numbers in violation of the *1188 franchise agreement. The complaint stated causes of action for (1) trademark infringement in violation of the Lanham Act; (2) false description or false representation as to defendants’ affiliation with U.S. Structures in violation of the Lanham Act; (3) trademark infringement in violation of Michigan law; (4) common law conversion of U.S. Structures’ property interest in the telephone numbers and trademarks associated with the Archa-deck name; (5) breach of the franchise agreement; (6) violation of the Michigan Consumer Protection Act; (7) unfair competition in violation of Michigan common law; and (8) infringement of a service mark in violation of Michigan common law. U.S. Structures prayed for an accounting, delivery of phone numbers and other materials associated with the Archadeek name, damages, treble damages, injunctive relief and attorneys’ fees and costs, and such other relief as may have been available under the Lanham Act and applicable state law.

After discovery was completed, U.S. Structures moved successfully for summary judgment. The district court held that U.S. Structures was entitled to relief as a matter of law for trademark infringement and unfair competition in violation of sections 32 (15 U.S.C. § 1114) and 43 (15 U.S.C. § 1125) of the Lanham Act. The court then awarded U.S. Structures the following damages: (1) $2,155.00, plus interest, representing defendants’ profits after the termination of the franchise agreement (calculated at a rate of twenty percent of all contracts entered into after 3/31/94); (2) $862.00, plus interest, representing unpaid royalties (calculated at a rate of eight percent of all contracts entered into after 3/31/94); (3) $6,465.00, representing treble damages under 15 U.S.C. § 1117(a) and (b); (4) $47,333.15 in attorneys’ fees pursuant to 15 U.S.C. § 1117(b); and (5) $10,603.50, representing all past due royalties. With regard to the award of attorneys’ fees, the court found that defendants’ infringement was “willful, deliberate, and intentional.” Finally, the court enjoined defendants from operating a similar business for one year from October 7,1994. 1 This appeal followed.

II.

A.

Defendants argue that the district court erred in granting summary judgment to U.S. Structures on the issue of trademark infringement, and that it erred in determining the amount of past royalties and profits due to U.S. Structures. We review a district court’s grant of summary judgment de novo. Brooks v. Am. Broad. Cos., Inc., 999 F.2d 167, 174 (6th Cir.1993). Summary judgment is proper when the “pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). The “mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). In reviewing the evidence, we must draw all justifiable inferences in favor of the non-moving party. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986).

The Lanham Act prohibits the unauthorized use of a registered trademark when selling or advertising a good or service using the trademark is likely to confuse or deceive consumers. In order to defeat summary judgment in a Lanham Act case alleging violations of sections 32 2 and 43, 3 defendants *1189

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Bluebook (online)
130 F.3d 1185, 1997 F. App'x 0354P, 45 U.S.P.Q. 2d (BNA) 1027, 1997 U.S. App. LEXIS 34016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-structures-incorporated-a-foreign-corporation-v-jp-structures-ca6-1997.