Wing Enterprises, Inc. v. Tricam Industries, Inc.

Court of Appeals for the Federal Circuit·Decided September 25, 2020·No. 19-2279·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

WING ENTERPRISES, INC., DBA LITTLE GIANT LADDER SYSTEMS, Plaintiff-Appellant

v.

TRICAM INDUSTRIES, INC.,

Defendant-Appellee

2019-2279

Appeal from the United States District Court for the District of Minnesota in No. 0:17-cv-01769-ECT-ECW, Judge Eric C. Tostrud.

Decided: September 25, 2020

MARK A. MILLER, Dorsey & Whitney LLP, Salt Lake City, UT, argued for plaintiff-appellant. Also represented by ELLIOT HALES; TIMOTHY J. DROSKE, Minneapolis, MN.

ERIC CHADWICK, DeWitt LLP, Minneapolis, MN, argued for defendant-appellee. Also represented by ZACHARY PAUL ARMSTRONG.

2 WING ENTERPRISES, INC. v. TRICAM INDUSTRIES, INC.

Before PROST, Chief Judge, REYNA and TARANTO, Circuit Judges.

PROST, Chief Judge.

The United States District Court for the District of Minnesota granted defendant Tricam Industries, Inc.’s (“Tricam”) motion to exclude testimony from plaintiff Wing Enterprises, Inc.’s (“Wing”) expert and granted Tricam’s motion for summary judgment. See Wing Enters., Inc. v. Tricam Indus., Inc., No. 17-cv-01769, 2019 WL 2994465 (D. Minn. July 10, 2019) (“Decision”). Wing appeals. For the reasons below, we reverse-in-part, affirm-in-part, and remand .

I

Wing, a manufacturer of multi-position ladders under the Little Giant brand, sued Tricam, a manufacturer of multi-position ladders under the Gorilla Ladders brand, for false advertising under both the Lanham Act, 15 U.S.C. § 1125(a), and the Minnesota Deceptive Trade Practices Act (“DTPA”), Minn. Stat. § 325D.44, as well as for patent infringement. The parties resolved the patent-related disputes , leaving only the false-advertising claims. 1 Wing’s false-advertising claims center on its allegation that Tricam falsely advertised that its Gorilla Ladders comply with American National Standards Institute (“ANSI”) A14.2. ANSI A14.2 is an industry safety standard that applies to metal multi-position ladders, such as those in this case. Wing contends that Tricam’s ladders do not

1 The district court determined that the standards for a false-advertising claim under the Lanham Act and the DTPA are the same. See Decision, 2019 WL 2994465, at *2. The parties have not challenged this determination. Like the district court and parties, we therefore focus on caselaw surrounding the Lanham Act.

WING ENTERPRISES, INC. v. TRICAM INDUSTRIES, INC. 3

meet the requirements of ANSI A14.2 Section 6.7.5. This section requires that the rung on a multi-position ladder have a “step surface of not less than 1 inch.” Appellee’s Br. 4 (citing J.A. 2502–03).

Wing alleged three instances of Tricam falsely advertising ANSI conformance: (1) the label on the side of Tricam’s ladders, which reads “manufacturer certifies conformance to OSHA ANSI A14.2 code for metal ladders,” Appellant ’s Br. 18 (capitalization normalized); (2) the statement on The Home Depot’s website, which reads “ANSI Certified, OSHA Compliant,” id. at 20; and (3) the statement on Tricam’s website, which reads “ANSI A14.2; OSHA,” id. at 20 n.16.

To prevail on a false-advertising claim, a plaintiff must, among other things, prove that “the deception is material , in that it is likely to influence the purchasing decision .” United Indus. Corp. v. Clorox Co., 140 F.3d 1175, 1180 (8th Cir. 1998). To help prove materiality, Wing commissioned Mr. Hal Poret to conduct two surveys. These surveys have been called the Importance Survey and the Labeling Survey.

The Importance Survey asked respondents to rank the factors they consider important when purchasing a ladder. The survey provided respondents with a list of factors, which included “strength/duty rating,” “compliance with industry safety standards,” “hinge lock size/style,” “feet material/style,” and “company name.” J.A. 4891–92 (capitalization normalized). According to Mr. Poret, the survey results showed that “compliance with industry safety standards was ranked first as the most important factor by more respondents (19%) than any other factor except for strength/duty rating” and that a “total of 58% of respondents rated compliance with industry safety standards an important factor.” J.A. 4894 (emphasis omitted). From these results, Mr. Poret concluded that “compliance with industry safety standards is the type of issue that is 4 WING ENTERPRISES, INC. v. TRICAM INDUSTRIES, INC.

important to consumers and would tend to . . . impact purchase decisions.” J.A. 4894.

The Labeling Survey showed a test group the side labeling of a Gorilla Ladder containing the allegedly false ANSI statement as well as a statement about OSHA compliance . J.A. 4882–83. It then showed a control group “an altered version” of the labeling in which “all references to compliance with OSHA/ANSI standards were removed.” J.A. 4883. The survey results showed that 69% of the test group members indicated that they were “extremely or very likely to purchase the ladder with the OSHA/ANSI content present,” which “exceeded the corresponding Control Group rate (55%) by a margin of 14%.” J.A. 4893. Based on the survey’s results, Mr. Poret concluded that the “OSHA/ANSI content did have a significant impact on reported likelihood of purchase.” J.A. 4894.

Tricam also presented survey results. Of relevance, Tricam retained Dr. Debbie Triese “to conduct survey market research to determine if the ANSI statement on the one side label does, in fact, influence consumers’ purchasing of multi-position ladders.” J.A. 3714. While Dr. Triese concluded from her survey results that “only 2% of the . . . respondents [in her survey] could have potentially been influenced by the ANSI label,” J.A. 3734, as Wing points out, the survey results also showed that 67.5% of survey respondents “stated they had read the side label before buying the ladder,” 42.4% of the respondents had heard of ANSI, and 21.9% of the respondents clearly knew what ANSI was, J.A. 3727–29, 4827–28. Dr. Triese’s expert report also observed that Mr. Poret had failed to “isolate the effect, if any, of the ANSI” statement on consumers, focusing instead on the effect of an ANSI-OSHA statement or on industry safety standards in general. J.A. 4951.

Nearly two months after the close of fact discovery and one week after receiving Dr. Triese’s report, Wing moved to supplement its responses to Tricam’s initial

WING ENTERPRISES, INC. v. TRICAM INDUSTRIES, INC. 5

interrogatories. In particular, Wing wanted to supplement its responses to interrogatories asking Wing to “‘[i]dentify with specificity the alleged misleading or false statement(s) made by Tricam.’” J.A. 861 (alteration in original). Wing’s initial responses to these interrogatories did not mention OSHA. See, e.g., J.A. 861 (“Tricam’s false statements include but are not limited to Tricam’s representation . . . that its accused ladders are ANSI compliant.”). Wing’s supplemental responses, however, included OSHA. See, e.g., J.A. 862 (“‘Manufacturer certifies conformance to OSHA ANSI A 14.2 Code for metal ladders’ . . . . [T]he [multi-position] ladders do not comply with all aspects of the ANSI A14.2 standard, which is the basis for Tricam asserting that the [multi-position] ladders are ANSI and OSHA compliant . . . .” (capitalization normalized)). In a detailed analysis not challenged on appeal, the magistrate judge concluded that Wing failed to timely disclose its OSHA-related contentions and struck Wing’s supplemental interrogatory responses. See J.A. 861–95. The magistrate judge reasoned that allowing Wing to supplement its interrogatory responses after the close of fact discovery would prejudice Tricam because Tricam would have to “re-litigate the case based on a new contention that the OSHA statements were false” and incur “the consequent delay and expense.” J.A. 893.

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