Nicholas Scoyni v. Daniel Salvador
20-35123
| 9th Cir. | Oct 28, 2021Background:
- Plaintiff Nicholas Scoyni sued over use of the service mark "Off-Spec Solutions," claiming an oral contract granting him rights and asserting defamation and trademark claims; defendants counterclaimed or defended asserting prior use and ownership.
- Defendants registered the assumed business name and an LLC in Idaho in August 2012 and produced receipts and Facebook advertisements showing use of the name in commerce prior to 2016.
- Scoyni had a federal service-mark registration but produced minimal evidence of use in commerce: a magnetic sign on a vehicle and office door and two affidavits whose deponents, at deposition, could not confirm awareness of the "Off-Spec Solutions" name.
- Defendants sent a cease-and-desist letter and made statements to the Trademark Trial and Appeal Board; the district court found those communications protected by the litigation privilege.
- The district court granted summary judgment for defendants on breach of contract, defamation, and trademark claims; it voided Scoyni’s registration ab initio for failure to use the mark in commerce, denied Scoyni’s default-judgment attempt, and awarded defendants fees and costs under Idaho law and Rule 54.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of an oral contract for mark use | Scoyni: parties formed an oral agreement to use the mark | Defendants: no meeting of the minds; no enforceable contract | No oral contract; summary judgment for defendants (no mutual assent) |
| Defamation | Scoyni: defendants communicated defamatory information about him | Defendants: communications (cease-and-desist, TTAB) are privileged litigation communications | Held for defendants; litigation privilege bars defamation claim |
| Trademark validity / use in commerce | Scoyni: registration creates presumption of a valid mark | Defendants: Scoyni rebutted; he did not use the mark in commerce; defendants used it earlier | Court held Scoyni’s registration void ab initio for failure to use in commerce; defendants had prior use |
| Default judgment procedure | Scoyni: sought default judgment | Defendants: timely answered after stay; Scoyni failed to follow Rule 55 process | Denied; Scoyni failed to obtain clerk’s entry of default and did not follow Rule 55 steps |
| Attorney fees and costs | Scoyni: challenges timeliness, jurisdiction after notice of appeal, and applicability | Defendants: timely moved; Idaho Code §12-120(3) applies to commercial transaction; costs allowed under Rule 54 | Fees and costs awarded to defendants; court retained jurisdiction to decide fees despite notice of appeal |
Key Cases Cited
- Hoffman v. S V Co., 628 P.2d 218 (Idaho 1981) (mutual assent required for contract formation)
- Barry v. Pac. W. Const., Inc., 103 P.3d 440 (Idaho 2004) (meeting-of-the-minds principle)
- Verity v. USA Today, 436 P.3d 653 (Idaho 2019) (elements of defamation claim)
- Dickinson Frozen Foods, Inc. v. J.R. Simplot Co., 434 P.3d 1275 (Idaho 2019) (litigation privilege for communications)
- Chance v. Pac-Tel Teletrac Inc., 242 F.3d 1151 (9th Cir. 2001) (presumption from federal registration rebuttable by nonuse)
- Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986) (two-step default judgment procedure under Rule 55)
- Masalosalo v. Stonewall Ins. Co., 718 F.2d 955 (9th Cir. 1983) (district court retains jurisdiction to award fees after notice of appeal)
- Mabe v. San Bernardino Cnty., Dep’t of Pub. Soc. Servs., 237 F.3d 1101 (9th Cir. 2001) (waiver of issues not raised below)
- Clayson v. Zebe, 280 P.3d 731 (Idaho 2012) (definition and applicability of "commercial transaction" for fee statutes)
- Great Plains Equip., Inc. v. Nw. Pipeline Corp., 36 P.3d 218 (Idaho 2001) (commercial-transaction analysis for fee entitlement)
