Lucky's Detroit, LLC v. Double L Inc., 4:09-cv-14622

Double L, Inc. (Counter Plaintiff) holds federal and state trademarks for “Lucky’s” / “Lucky’s Steakhouse.” Lucky’s Detroit, LLC (Counter Defendant) used those marks for restaurants, prompting infringement litigation beginning in 2009.
The Sixth Circuit affirmed a permanent injunction (and the district court previously found Double L entitled to recover defendant’s profits under the Lanham Act) barring Lucky’s Detroit from using the marks.
The district court (Zatkoff) ordered Lucky’s Detroit to produce certified financial statements for four formerly infringing restaurant locations to permit calculation of disgorgement under 15 U.S.C. § 1117(a).
Lucky’s Detroit produced incomplete, uncertified tax/financial documents and claimed some locations were managed rather than owned; the court found the produced materials deficient and the ownership claim for Southfield contradicted prior findings and deposition testimony.
Using the available tax/financial materials, the court found profits at the East Jefferson location for 2010–2012 totaling $519,766.00 and a May–Dec 2010 profit at the Southfield location of $50,214.59; it rejected Double L’s proposal to extrapolate 2010 Southfield profits to later years.
The court granted Double L’s disgorgement request and ordered Lucky’s Detroit to pay $569,980.59 in total disgorged profits.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Entitlement to disgorgement of profits under Lanham Act	Double L: entitled to all profits from infringing restaurants under 15 U.S.C. § 1117(a).	Lucky's: challenged completeness/accuracy of profit evidence; resisted certain ownership attributions.	Court: Double L entitled to disgorgement; awarded profits where supported by records.
Adequacy of financial production / certified statements	Double L: defendant failed to produce required certified financial statements; court may use available records.	Lucky's: businesses closed; produced all documents in possession; asked court to decide with what exists.	Court: documents were not certified and incomplete, but sufficient to award profits for certain years/locations.
Ownership of Southfield location	Double L: Lucky's owned Southfield and produced P&L showing profit; therefore liable for those profits.	Lucky's: asserted management-only role and lack of access to records.	Court: prior Sixth Circuit and district findings and deposition proof show Lucky's owned Southfield; awarded $50,214.59.
Apportionment / extrapolation of profits across years	Double L: proposed using 2010 Southfield profit pro rata to estimate 2011–2012 profits.	Lucky's: challenged use of 2010 as predictor given economic variability and losses at other locations.	Court: rejected extrapolation as implausible; awarded only profits supported by actual records.

Wynn Oil Co. v. American Way Serv. Corp., 943 F.2d 595 (6th Cir.) (burden on infringer to prove that infringement had no cash value in sales and to support apportionment)
Lucky's Detroit, LLC v. Double L, Inc., [citation="533 F. App'x 553"] (6th Cir.) (affirming ownership/operation findings and injunction against Lucky’s Detroit)