MEMORANDUM AND ORDER
The case comes before the court on the plaintiffs motion to restore injunction during pendency of appeal pursuant to Rule 62(c) of the Federal Rules of Civil Procedure and Rule 8(a) of the Federal Rules of Aрpellate Procedure. (Dk. 207). The plaintiff brought this action under 15 U.S.C. § 1125(a) seeking to enjoin the defendants from using the names and marks of “First Bank(s),” “First Bank System,” or “First Bank Kansas” for their banks servicing the Kansas counties of Douglas, Riley, Geary, Potawatоmie and Marshall. On July 11,1995, the court granted the defendants’ motion for summary judgment. (Dk. 198). The plaintiff has appealed. (Dk. 203).
At the time it filed this suit on January 31, 1995, the plaintiff also requested a preliminary injunction. The court scheduled the preliminary injunction hеaring for February 14, 1995. Agreeing that the proceedings for the preliminary injunction and trial should be consolidated with an expedited trial setting, the parties entered into a stipulation regarding the defendants’ actions pending final judgment. (Dk. 10). The defendants agreed not to take the following actions in the five-county region:
1. Advertise any services available through any banks presently or formerly operating as Metropolitan Federal Banks, under the name “First Bаnk” or any confusingly similar name, through newspapers, magazines, television, radio, billboards, flyers, or any other broadcast or other media;
2. Use the name “First Bank” or any confusingly similar name in connection with exterior signage at аny banks within those counties; or
3. Answer business telephones with the name “First Bank” or any confusingly similar name at any banks within those counties.
(Dk. 10 at 2). In the agreed scheduling order filed February 16, 1995, the court adopted the above stipulation and аgreement and ordered the defendants not to take the actions set forth above. (Dk. 11 at 3). Upon the entry of final judgment, the defendants were relieved from the terms of the stipulation and order. The plaintiff now wants the court to revive the agreed injunction for the pendency of its appeal.
Rule 62(c) of the Federal Rules of Civil Procedure provides in pertinent part:
When an appeal is taken from an interlocutory or final judgment granting, dissolving, or denying an injunction, the court in its discretion may suspend, modify, restore, or grant an injunction during the pendency of the appeal upon such terms as to bond or otherwise as it considers proper for the security of the rights of the adverse party.
Stay of an injunction should first be sought at the district court level. Fed.R.App.P. 8(a).
An application under Rule 62(c) is committed to the court’s discretion informed by the balancing of certain factors. 11 Charles A. Wright, et al., Federal Practice and Procedure § 2904 at 501 (1995). Thе considerations on a motion for stay pending appeal are similar to those evaluated in deciding whether to grant a preliminary injunction. Schwartz v. Dolan,
The movant bears the burden of proving these four factors. Wildmon v. Berwick Universal Pictures,
The balancing of these four factors is plainly a case-by-ease task that does not submit to any rigid set of rules. Hilton,
The balance depends on the relative strength of certain factors. To obtain a stay, the movant need not' always show a strong likelihood or high probability of success on the mеrits. Michigan Coalition,
Irreparable Injury
An injury is irreparable if compensatory damages are unsuitable. Wildmon v. Berwick Universal Pictures,
The court does not believe the plaintiffs evidence demonstrates irreparable harm. From the reрorted consumer calls and inquiries, one can infer that some level of actual confusion has existed. The court, however, cannot determine from what has been presented whether that confusion is long-term, significant, unmаnageable, or particularly harmful to the plaintiff. The plaintiffs evidence of actual confusion is comprised of a noticeable number of instances where customers of Metropolitan Federal Bank confused after reading the announcement of their bank’s merger called the plaintiff about that change. This confusion proba
There is nothing of record from which onе could reasonably infer that the defendants have the intent to derive benefit from the reputation or goodwill of the plaintiff. From the evidence offered by the defendants, it appears that the plaintiffs reputation in the banking community is not something that the defendant would want. The defendants appear as motivated as the plaintiff, if not more so, to have their institution stand on its own reputation and goodwill.
“First” is a common element in bank names. By elevating this common element to singular importance in its mark, the plaintiff accepted the risks and the uncertainties that come from doing so. The defendants have evidence of actual consumer confusion existing between the plaintiff and the First National Bank of Salina and the First National Bank of Wamego. Given this background level of confusion, the plaintiff cannot meet its burden of proving a likelihood of confusion without evidence that therе has been or will be levels of confusion significantly greater than the background levels.
Banking transactions are marked by an attention to detail and approached by consumers with that care and concern resеrved for matters directly bearing on their financial welfare. Given this typical degree of consumer care, the court agrees there is a substantial basis for believing the defendants’ continued use of the prominent modifier “Kаnsas” should minimize the likelihood of any significant consumer confusion. In short, the court cannot conclude from the plaintiffs evidence and arguments that the possible confusion will be of the nature, degree or duration that would nеcessarily harm or diminish the plaintiffs name recognition and good will. Finally, the plaintiff does not establish that without the injunction it would be unable to prevent the harm that would flow from this possible confusion. This factor does not militate in favоr of a stay.
Harm to the Defendants
The plaintiff argues the defendants are not in a position to claim any substantial harm. If there was any harm, the defendants would not have stipulated to the initial injunction. Because the defendants rushed to complеte the exterior signage after the entry of final judgment, the plaintiff maintains the defendants can remove the signage as easily.
Since the entry of final judgment on July 11, 1995, the defendants have erected the exterior signage on their branches in Lawrence and started using their name First Bank Kansas.
The court believes the defendants face substantial harm if forced for the second time to revert back to its former name after publicizing a name change. This event could cause not only confusion and frustration to the defendant’s customers, but it also could raise concerns about the defendant’s stability and, thus, its ability to serve the continuing needs of its customers. The defendant would be prevented from continuing the development of its identify as one of the branches in the larger First Bank System. Along that same line, the defendant would be forced to customize its advertising and some of its
Public Interest
The court is not sure that the level of consumer confusion would be less with or without a stay. With a stay and another name change, the defendants’ customers will be сonfused over their bank’s status, and the public could be confused over the defendants’ stability. Without a stay, there will be some level of confusion caused by the similarity of names that may subside as the defendants work at developing nаme recognition. This factor does not strongly favor the plaintiff.
Likelihood of Success on the Merits
Based on the balance of equities, the plaintiff must do more than show that it has a substantial case on the merits. Indeed, the plaintiff must show a strong likelihood or high prоbability of success on the merits. The court believes that the summary judgment order speaks for itself and that the plaintiff faces a difficult hurdle in overcoming the constructive notice provided by the defendants’ federal registration. Were the court of appeals to reverse the summary judgment order, the plaintiff faces another difficult burden at trial in proving a substantial likelihood of confusion. On the issues as they have been presented, the court finds thаt the plaintiff has not shown a strong likelihood of prevailing on the merits.
IT IS THEREFORE ORDERED that the plaintiffs motion to restore injunction during pendency of appeal (Dk. 207) is denied.
Notes
. Because of these changes, an injunction now would alter rather than preserve the status quo. The movant's burden is particularly heavy when the injunction would not preserve the status quo, but change it. SCFC ILC, Inc. v. Visa USA, Inc.,
