MARCIA S. KRIEGER, Chief District Judge.
The Court assumes the reader's familiarity with the proceedings to date and offers only a summary. GDHI publishes, by direct mailing to selected households, a magazine consisting primarily of advertisements from home improvement contractors. In or about July `, the Defendants began publishing a competing magazine. GDHI contends that, in the course of promoting the competing magazine, the Defendants made false statements to contractors who were potential advertisers in either or both magazines:
• In a July 5, 2018 email, the Defendants informed the contractors that GDHI had not mailed out its June 2018 issue because GDHI had not paid the post office for that mailing. The Defendants encouraged the contractors not to advertise with GDHI unless GDHI produced a verified proof of mailing. GDHI states that these assertions were false and that the June 2018 went out as scheduled and postage was paid in full for it.
• In an August 31, 2018 email to contractors, the Defendants promoted their competing magazine, stating that unlike "our competitors" — which GDHI understands to be referring specifically to it — the Defendants "do not saturate zipcodes" and "handpick every single home that receives" their magazine. GDHI contends that, contrary to the Defendants' implication, it carefully selects which households receive its magazines. It also contends that, contrary to the Defendants' assertions, the Defendants do not "handpick" which households receive the Defendants' magazine, in that both GDHI and the Defendants purchase their initial mailing list from the same source.
• That at unspecified times (although occurring "well over 1,000 [times] this year alone"), the Defendants sent contractors a "media kit" that states: (i) the average household receiving the Defendants' magazine has an "average net worth" of $1.73 million, and (ii) that "72% of our readers frequently purchase products or services from ads seen" in the magazine. GDHI does not assert that the "net worth" statement is factually untrue, but notes that the Defendants selected "average" net worth because "it is deceptively inflated by a few ultra-rich individuals" that receive the Defendants' magazine. It contends that the "72%" statement is false because, in fact, both GDHI and the Defendants' magazines have "direct response rates per issue of far less than 1% per advertiser."
Based on these facts, GDHI asserts numerous claims sounding in monopolization in violation of the Sherman Act, 15 U.S.C. § 2 et seq.; unfair competition in violation of the Lanham Act, 15 U.S.C. § 1125(a); violation of the Colorado Consumer Protection Act, C.R.S. § 6-1-101 et seq., tortious interference with contractual relations that GDHI had with contractors already advertising with it, and defamation (the latter two presumably asserted under Colorado law).
GDHI filed the instant Motion for Preliminary Injunction
Shortly after filing the injunction motion, GDHI filed the instant Motion to Expedite
To obtain a preliminary injunction, GDHI has the burden of showing: (i) that it is substantially likely to succeed on the merits; (ii) that it is likely to suffer an irreparable injury if the injunction is not granted; (iii) that the balance of harms tips in favor of the movant; and (iv) that the requested injunction is not adverse to the public interest. Certain types of injunctions, including those that request mandatory or conclusive relief — such as GDHI's request for an immediate declaration that the statements it identifies are "deceptive" — are disfavored, and thus require the movant to make a "strong" showing as to the likelihood of success and balance of harm elements. Fish v. Kobach, 840 F.3d 710, 723-24 (10
The Court exercises jurisdiction in this matter pursuant to 28 U.S.C. §1331.
Here, the Court need not reach the question of expedition, as the Court finds that GDHI's substantive injunction motion, on its face, fails to demonstrate that GDHI could establish facts necessary to obtain the requested injunction. In doing so, the Court discards that portion of GDHI's request that seeks a conclusive determination that the statements it challenges by the Defendant are, as a matter of law, deceptive because such request seeks final relief for which GDHI has made an inadequate showing. Even under the lesser standard applicable to the requested prohibitory, status quo injunction, GDHI's showings are insufficient.
The Court begins with the question of whether GDHI has made a prima facie showing that it will suffer an irreparable injury if the Court does not enjoin the Defendants from continuing to make the statements described above. To be "irreparable," a contemplated injury must have several characteristics: (i) it must be actual and certain, not simply theoretical, (ii) it must be imminent, such that there is a clear need to act to prevent the harm from occurring, and (iii) the harm cannot be remedied with an award of money damages. Heideman v. Salt Lake City, 348 F.3d 1182, 1189 (10
The Court begins with problems of certainty and imminence. GDHI does not come forward with any facts that suggest that the Defendants have repeated, much less will repeat in the future, the challenged portions of their July and August 2018 emails.
A showing of irreparable harm also requires a demonstration that the act sought to be enjoined is causally-connected to the injury the movant believes is imminent; otherwise, the injunction would be ineffective at preventing the harm. Here, GDHI offers no evidence to suggest that it can prove that its recent loss of customers — Mr. Harline's affidavit estimates that he has lost $20,000 in revenue from contractors he has lost as advertisers since the Defendants began publishing their competing magazine in July 2018 — was caused by the Defendants' misstatements. GDHI has not proffered any evidence from its former customers who might attest to the fact that they chose to cease advertising with GDHI after hearing any of the cited statements. Compare Century Martial Arts Supply Inc. v. National Assn. of Professional Martial Artists, 129 Fed.Appx. 421, 427 (10
It is axiomatic that a party seeking a preliminary injunction must show that it is likely to succeed on one or more claims that, if proven at trial, would support an aware of final injunctive relief in the same form as that which is sought provisionally. Here, only GDHI's unfair competition and state-law claims (e.g. tortious interference with contract, defamation) would, if proven, permit the Court to enjoin the Defendants from continuing to make the challenged statements, and thus, the Court need only assess GDHI's likelihood of succeeding on these claims. The Court need not extensively recite the elements of each claim separately; it is enough to assert that all of GDHI's claims of this type require it to show that the Defendants: (i) made a misleading statement of fact, (ii) that caused contractors to choose not to do business with GDHI. See e.g. Cottrell, Ltd. v. Biotrol Intern., Inc., 191 F.3d 1248, 1252 (10
But the Court also has concerns that some of the statements that GDHI relies upon would not be actionable as material misstatements. For example, GDHI takes issue with statements in the Defendants' media kits that contend that the
That leaves only the "72%" statement — that "72% of [the Defendants'] readers frequently purchase products or services from ads seen" in the Defendants' magazine. According to GDHI (but not Mr. Harline's affidavit), "within the broader direct mail industry, purchase rates approaching 4% are considered spectacular" and that both GDHI and the Defendants experience "direct response rates per issue of far less than 1% per advertiser." GDHI argues that it "can directly track the phone calls received in response to each advertiser" in its own magazine, and that "presumably [the Defendants] can do the same." GDHI's argument on this point suffers from several problems. It equates the Defendants' statement that reader "frequently purchase products or services from ads seen" with concepts described variously as "purchase rates" or "direct response rates," when it is not at all clear to the Court that these statements all share a common meaning. It seems to conflate response rates for "the broader direct mail industry" — the composition and characteristics of which is unknown — with response rates for the particular magazines at issue here. And it "presume[s]" that the Defendants track response rates the same way that GDHI does, without even Mr. Harline claiming to have any actual knowledge that the Defendants do so. Given these various concerns, and the burden that a party seeking preliminary injunctive relief faces, the Court finds that GDHI has not made a prima facie showing that it is likely to succeed on the merits of its claims, such that further consideration of its injunction motion is warranted.
Accordingly, the Court finds it appropriate to deny GDHI's injunction motion without prejudice. GDHI may, of course, file a new motion that more fully articulates the factual basis for its claims (including the imminence of the harm sought to be prevented) and the evidence it can adduce to support those claims. But on the record currently before the Court, GDHI has not made a prima facie showing that would warrant further evaluation of the motion or an evidentiary hearing. Accordingly, GDHI's Motion for Preliminary Injunction