JOHN E. STEELE, District Judge.
This matter comes before the Court on the plaintiff's Motion for Summary Judgment Against Defendant Jose Baserva's Counterclaims (Doc. #117) filed on November 28, 2014. Defendant Jose Baserva filed a Verified Response in Opposition (Doc. #128) on December 8, 2014. Also before the Court is plaintiff's Corrected Motion for Sanctions against Defendant Baserva (Doc. #136) filed on January 6, 2015. Defendant Jose Baserva filed a Motion for Continuance of Trial Period and Trial (Doc. #160) and a Motion for Expedited Ruling (Doc. #161) on January 28, 2015.
Vivid Entertainment, LLC (plaintiff) initiated this action on July 15, 2013, by filing a Complaint against J&B PB, LLC (J&B) and Jose Baserva (Baserva) alleging trademark infringement, use of false designation of origin, cybersquatting, and state law claims. (Doc. #1) Defendants appeared and filed an answer and counterclaims for cancellation of Federal Trademark Registration No. 2,475,741 pursuant to 15 U.S.C. § 1064(3) on grounds of procurement by fraud (Counterclaim I), cancellation of Federal Trademark Registration No. 2,475,741 pursuant to 15 U.S.C. § 1064(3) on grounds of abandonment (Counterclaim II), and trademark infringement pursuant to 15 U.S.C. § 1125(a) (Counterclaim III). (Doc. #35.) On May 6, 2014, plaintiff filed an Amended Complaint (Doc. #45) adding Vivid, LLC (Vivid) and Anthony McCarty (McCarty) as defendants and adding additional state law claims.
J&B and Baserva filed an Answer to Amended Complaint (Doc. #50) on May 22, 2014, and adopted their previously filed Affirmative Defenses and Counterclaims. After proper service of process, Vivid and McCarty both failed to appear and respond to the Amended Complaint, and upon appropriate motions, a Clerk's Entry of Default was issued against Vivid (Doc. #60) and McCarty (Doc. #70).
On July 21, 2014, counsel for J&B and Baserva filed a Motion to Withdraw as Counsel at the request of J&B and Baserva. (Doc. #66.) The Court granted the motion on July 24, 2014, and provided J&B and Baserva with thirty days to obtain new counsel. (Doc. #67.) An extension of time to secure new counsel for J&B was denied (Doc. #86), and upon failing to timely secure new counsel, the Clerk was directed to enter a default against J&B (Doc. #88). The Clerk's Entry of Default against J&B was issued on September 19, 2014. (Doc. #92.) Baserva also failed to secure new counsel and is proceeding pro se.
On August 11, 2014, Baserva filed a Motion to Modify the Case Management and Scheduling Order to Extend the Deadlines. (Doc. #71.) The Court granted Baserva's motion (Doc. #77), and entered a Second Amended Case Management and Scheduling Order which required the parties to complete discovery by November 28, 2014, meet in person to prepare a Joint Final Pretrial Statement by December 10, 2014, file a Joint Final Pretrial Statement by December 29, 2014, and appear at the Final Pretrial Conference on January 20, 2015 (Doc. #87). Baserva made another request to extend to the discovery deadline on November 21, 2014. (Doc. #115.) This motion, however, was denied because Baserva failed to show that his request on an extension was supported by good cause. (Doc. #137.)
Plaintiff now moves for summary judgment on Baserva's counterclaims (Doc. #117) and seeks the imposition of sanctions for Baserva's failure to comply with the Court's Second Amended Scheduling Order (Doc. #136).
The Court will first address plaintiff's motion for summary judgment.
Summary judgment is appropriate only when the Court is satisfied that "there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). "An issue of fact is `genuine' if the record taken as a whole could lead a rational trier of fact to find for the nonmoving party."
In ruling on a motion for summary judgment, the Court views all evidence and draws all reasonable inferences in favor of the non-moving party.
The following facts are undisputed and taken in the light most favorable to the non-moving party, Baserva
Plaintiff sells and distributes goods bearing the Trademarks, and plaintiff's products are famous, recognized, and distributed worldwide. Plaintiff owns over 350 domain names, which include the Trademarks prominently displayed. The Trademarks are distinctive, and the public associates the Trademarks with the goods and services of plaintiff and high quality erotic and adult entertainment. Plaintiff has granted licenses to use the Trademarks for nightclubs in Las Vegas, Nevada (Vivid), New York, NY and Los Angeles, CA (Vivid Cabaret), Charlotte, NC (Vivid's Gentleman's Club), and Miami-Dade County, FL (Vivid Live Gentlemen's Club).
In August 2010, J&B purchased "Club Goddess," a night club located in Palm Bay, Florida. "Club Goddess" remained open for at least a month, possibly two, before it was shut it down for renovations. Before reopening the club in January 2011, J&B changed the name to "Vivid Cabaret." Prior to renaming "Club Goddess," Baserva, the sole owner of J&B, had never used "Vivid" or "Cabaret" in connection with night club services.
On October 19, 2011, J&B sold the assets of Vivid Cabaret, including the trade name, to Vivid, of which McCarty is the sole owner. Baserva also turned over the social media page he created for Vivid Cabaret and the Vivid Cabaret website. On December 4, 2012, plaintiff sent a cease and desist letter to Vivid, and on May 10, 2013, Vivid signed an Agreement agreeing to cease using and imitating the Trademarks. Vivid, however, continued to use and imitate the Trademarks in the operation of Vivid Cabaret.
On April 10, 2013, plaintiff sent J&B a cease and desist letter demanding that it discontinue its use of the Trademarks and to transfer the vividcabaret.com domain name to plaintiff. Baserva responded and admitted to registering the domain name, and offered to sell his rights to Vivid Cabaret to plaintiff. On April 23, 2013, Baserva filed a trademark application for "Vivid Cabaret," however, in February 2014, the application was refused because of the likelihood of confusion with plaintiff's Trademarks and suspended based on the pendency of this action.
Plaintiff argues that summary judgment is warranted because there is no evidence supporting Baserva's counterclaims. The Court agrees.
In Counterclaim I, Baserva alleges, upon information and belief, that plaintiff's mark should be cancelled because plaintiff fraudulently told the USPTO that it used the VIVID mark in connection with night club services at the time it filed its trademark application. (Doc. #35, ¶¶ 5-22.)
A third party may petition to cancel a registered trademark on the ground that the "registration was obtained fraudulently." 15 U.S.C. § 1064(3). "Fraud in procuring a trademark registration or renewal occurs when an applicant knowingly makes false, material representations of fact in connection with his application."
The Court finds that Baserva has not met his heavy burden of proving that plaintiff knowingly made a false statement to the USPTO or that plaintiff intended to deceive the USPTO. Baserva has failed to identify any evidence supporting his claim and the time for obtaining such evidence has lapsed. Accordingly, summary judgment is granted in favor of plaintiff as to Counterclaim I.
In Counterclaim II, Baserva alleges, upon information and belief, that plaintiff's mark should be cancelled because plaintiff did not use VIVID in connection with night club services for at least three consecutive years prior to December 1, 2010. (Doc. #35, ¶¶ 23-26.)
Under the Lanham Act, a trademark is deemed abandoned, and, thus no longer valid, "[w]hen its use has been discontinued with intent not to resume such use." 15 U.S.C. § 1127. In order to show that plaintiff has abandoned its trademark, Baserva must show that: (1) plaintiff has ceased using the mark in dispute and (2) plaintiff has done so with an intent not to resume its use.
On this record, it is clear that plaintiff has made continuous use of VIVID in connection with nightclub services. It is undisputed that plaintiff hosted events at clubs owned and operated by third parties prior to Baserva's use of "Vivid Cabaret," and that plaintiff prominently displayed VIVID at these events. (Doc. #117-8, Doc. #117-9.) Furthermore, plaintiff has granted licenses to use VIVID for nightclubs throughout the country. Based on the foregoing, the Court finds that plaintiff is entitled to summary judgment on Counterclaim II because there is no evidence of abandonment.
In Counterclaim III, Baserva asserts a claim for trademark infringement under 15 U.S.C. § 1125(a). To establish a claim of trademark infringement, a plaintiff must show that (1) he owns a valid and protectable mark, and (2) the defendant's use of the mark is likely to cause confusion.
Plaintiff seeks the imposition of sanctions against Baserva because Baserva failed to participate in the preparation of a Joint Final Pretrial Statement and failed to appear at the Final Pretrial Conference. Specifically, plaintiff requests that the Court enter a default against Baserva on plaintiff's claims, strike Baserva's affirmative defenses, and award plaintiff reasonable attorneys' fees. (Doc. #136, p. 3.)
On September 10, 2014, the Court entered a Second Amended Case Management and Scheduling Order which required the parties to meet in person to prepare a Joint Final Pretrial Statement by December 10, 2014, file a Joint Final Pretrial Statement by December 29, 2014, and appear at the Final Pretrial Conference on January 20, 2015. (Doc. #87.) On December 9, 2014, the parties filed a Joint Motion to Extend Meeting in Person Deadline, requesting that the deadline be extended to December 19, 2014, due to scheduling conflicts. (Doc. #129.) The Court granted the motion, but indicated that all other deadlines will remain the same. (Doc. #130.) Plaintiff and Baserva filed a Second Joint Motion to Extend Meeting in Person Deadline, Joint Final Pretrial Statement Deadline, and Deadline for All Other Motions on December 17, 2014. (Doc. #131.) The motion stated that the parties attempted to resolve some pending claims and agreed to meet on January 5, 2015, and file a Joint Final Pretrial Statement on January 7, 2015. (
On January 6, 2015, plaintiff filed a motion requesting sanctions against Baserva for failing to appear in person at the meeting scheduled to prepare a Joint Final Pretrial Statement. (Doc. #136.) Plaintiff contends that on the eve of the scheduled in person meeting, Baserva informed plaintiff's counsel that he would not be attending the meeting, may be retaining new counsel, and suggested that plaintiff agree to extend all case deadlines. (Doc. #136.) Baserva did not appear at the scheduled meeting.
The next day, plaintiff filed a Motion for Extension of Time to File Trial Brief, Pretrial Statement and Jury Instructions. (Doc. #146.) The motion asserted that Baserva contacted counsel for plaintiff on January 7, 2014, and agreed to participate in the in person meeting. The Court granted plaintiff's motion and ordered the parties to meet in person to prepare a Joint Final Pretrial Statement on or before January 14, 2015, and to file a Joint Final Pretrial Statement, trial briefs, and jury instructions before the close of business on January 15, 2015. (Doc. #147.) The Order further stated that plaintiff shall file a unilateral final pretrial statement if Baserva fails to participate in the preparation of the pretrial statement. (
Baserva once again failed to participate in the formulation of a pretrial statement, causing plaintiff to file a Unilateral Final Pretrial Statement. (Doc. #155.) The Court held a Final Pretrial Conference on February 20, 2015, and Baserva failed to appear.
A district court may impose sanctions for litigation misconduct under its inherent power.
Fed. R. Civ. P. 16(f). "Sanctions under Rule 16(f) are `designed to punish lawyers and parties for conduct which unreasonably delays or otherwise interferes with the expeditious management of trial preparation.'"
Under Rule 37, the district court may, among other sanctions, render a default judgment against the disobedient party. Fed. R. Civ. P. 37(b)(2)(A)(vi). Before imposing such a severe sanction, a court must find that the party's failure to comply with a discovery order was either willful or in bad faith.
Finally, while the pleadings of pro se litigants are held to a less stringent standard than pleadings drafted by attorneys,
There is no dispute that Baserva violated the requirements of this Court's Case Management and Scheduling Order by failing to participate in the preparation of a joint final pretrial statement and by failing to appear at the scheduled Final Pretrial Conference. Baserva contends that his failure to participate in the in person meeting because he was waiting for the Court to rule on his Amended Motion for Clarification and Extension of Time to Meet Discovery Deadline. (Doc. #160.) The Court finds that Baserva's proffered excuse does not amount to good cause because the pendency of a motion does not stay the deadlines in a case. Furthermore, Baserva has failed to explain his absence at the Final Pretrial Conference.
Baserva's conduct shows a clear pattern of delay and a conscious disregard of this Court's Orders. Such conduct warrants the imposition of sanctions. Accordingly, Baserva's Amended Answer (Doc. #50) will be stricken and a Clerk's Default will be entered against Baserva. Given the imminence of trial, the Court finds that lesser sanctions would not suffice.
Accordingly, it is now
1. Plaintiff's Motion for Summary Judgment Against Defendant Jose Baserva's Counterclaims (Doc. #117) is
2. Plaintiff's Corrected Motion for Sanctions against Defendant Baserva (Doc. #136) is
3. Baserva's Amended Answer (Doc. #50) is
4. The Clerk shall enter a default against defendant Jose Baserva and remove this case from the trial calendar.
5. Plaintiff's Motions in Limine (Doc. #140; Doc. #141; Doc. #142; Doc. #143; Doc. #144) are
6. Defendant Jose Baserva's Motions for Continuance of Trial Period and Trial (Doc. #160; Doc. #162) are
7. Defendant Jose Baserva's Motions for Expedited Ruling (Doc. #161; Doc. #163) are