Lamons Gasket Co. v. Flexitallic L.P.
9 F. Supp. 3d 709
S.D. Tex.2014Background
- Lamons and Flexitallic manufacture/gasket industry; ASME B16.20 standard governs spiraled wound gaskets.
- In Jan 2014 Flexitallic circulated a Document stating Lamons’ gaskets do not comply with ASME B16.20.
- Lamons alleges the statements are false/misleading and made to obtain unfair competitive advantage.
- Lamons asserts federal Lanham Act claim under §43(a) and Texas business disparagement claim.
- Flexitallic moves to dismiss under TCPA; parties later agree TCPA does not apply to the Lanham Act claim.
- Court will deny the Motion to Dismiss; discusses TCPA applicability and commercial-speech exemption
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does TCPA apply to state-law claims in federal court? | Lamons argues TCPA applies; or at least not to Lanham Act claim. | Flexitallic argues TCPA should dismiss state-law claims. | Court assumes TCPA applies to Texas-law claims in federal court. |
| Does the commercial speech exemption apply to Lamons’ business disparagement claim? | Statements were made for sales/marketing to customers. | Plaintiff cannot prove the statements were made to obtain sales. | Court finds sufficient evidence that exemption applies to the business disparagement claim. |
| Is the Lanham Act claim subject to TCPA dismissal? | Lanham Act claim remains federal and not TCPA-barred. | TCPA could bar state claims; Lanham Act claim not applicable per concession. | TCPA does not apply to the Lanham Act claim. |
Key Cases Cited
- NCDR, L.L.C. v. Mauze & Bagby, P.L.L.C., 745 F.3d 742 (5th Cir. 2014) (TCPA aims to balance free speech and meritorious lawsuits)
- Newspaper Holdings, Inc. v. Crazy Hotel Assisted Living, Ltd., 416 S.W.3d 71 (Tex.App.-Houston [1st Dist.] 2013) (four-factor test for commercial speech exemption)