Rush v. Hillside Buffalo, LLCRush v. Hillside Buffalo, LLC
INTRODUCTION
Plaintiff Chuck Rush ("Plaintiff") commenced this pro se аction on June 13, 2018, alleging that Defendants violated the Lanham Act,
FACTUAL BACKGROUND
Plaintiff avers that he owns and operates "Crash-A-Rama," which he describes as " '[t]he wildest show on wheels,' featuring men and women running old junk cars in exciting and entertaining events." (Dkt. 2 at 3-4). Plaintiff further avers that he is the sole owner of a registered federal trademark for the name, "Crash-A-Rama." (Id. at 4; see Dkt. 1 at 16-25 (exhibits to Plaintiff's complaint) ). Plaintiff has operated Crash-A-Rama at the Holland International Speedway (the "Speedway") in Holland, New York for eighteen years. (Dkt. 2 at 3-4). However, Defendants recently acquired the Speedway, and they now operate that location under the name "Hillside Buffalo, LLC a/k/a The Track at Hillside Buffalo." (Id. at 4).
Plaintiff avers that on or about May 30, 2018, Defendants "knowingly and purposefully converted [his] business and federal trademark ... into 'Crash-O-Rama'; all for [D]efendants' exclusive profit and gain and to the detriment of [P]laintiff[.]" (Id. ). Defendants have advertised a "Crash-O-Rama" event to take place on Saturday, June 16, 2018, at the Speedway, and appear to have done so in conjunction with the sale of tickets both online and in print. (Dkt. 2 at 4-6; see Dkt. 1 at 33, 37, 41-46 (exhibits to Plaintiff's complaint) ). Plaintiff avers that this "slight and nearly unnoticeable change" to his registered trademark was intended to capitalize upon Plaintiff's "good reputation, unique auto racing, and successful business history and earnings" by confusing and "trick[ing] the public and consumers ... to sell tickets and generate money only to [Defendants'] benefit." (Dkt. 2 at 4-5).
The next day, Plaintiff notified Defendants by email that they had infringed upon his registered trademark, and he demanded that they "cease and desist" any further misappropriation of the "Crash-A-Rama" name. (Id. at 5). In his complaint,
DISCUSSION
I. Subject Matter Jurisdiction
A. Diversity Jurisdiction
"Federal district courts are requirеd to test their subject matter jurisdiction sua sponte. " Sabatino v. St. Barnabas Med. Ctr. , No. 03 CV 7445 (CSH),
Plaintiff alleges that he is a citizen of the State of Florida, and that Defendants are all citizens of the State of New York for diversity purposes. (Dkt. 1 at 3-5). In doing so, Plaintiff alleges that Hillside Buffalo, LLC is a corporation that is incorporated under the laws of the State of New York, and that it maintains its principal place of business in New York. (Id. at 4). However, Hillside Buffalo, LLC is a limited liability company.
"In general, the citizenship of a limited liability company is determined by the citizenship of each of its members." Carter v. HealthPort Techs., LLC ,
Therefore, although Plaintiff seeks to invoke principles of diversity of citizenship, he has failed to properly allege a basis for diversity jurisdiction.
B. Federal Question Jurisdiction
Since Plaintiff has failed to allege diversity jurisdiction, this Court has subject matter jurisdiction over this action only if Plaintiff has sufficiently invoked the Lanham Act.
use in commerce [of] any reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with the sale, offering for sale, distribution, or advertising of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive.
a mark shall be deemed to be in use in commerce ... on services when it is used or displayed in the sale or advertising of services and the services are rendered in commerce, or the services are rendered in more than one State or in the United States and a foreign сountry and the person rendering the services is engaged in commerce in connection with the services.
"It is well settled that the scope of 'in commerce' as a jurisdictional predicate of the Lanham Act is broad and has a
Although Plaintiff's allegations invoking the Lanham Act are somewhat unclear and not wholly fleshed out, in reviewing the Complaint as a whole the Court preliminarily finds that it has subject matter jurisdiction to entertain this action on the basis of federal question jurisdiction. Here, Plaintiff alleges that he has a registered federal trademark in the name "Crash-A-Rama," and that Defendants have infringed upon this property right by using the name "Crash-O-Rama" in the advertisеment, promotion, and sale of their tickets for this event. (Dkt. 1 at 7). In addition, the "Crash-O-Rama" event is scheduled to be held at the same location as the previous "Crash-A-Rama" events, which would likely give rise to at least some consumer confusion. (See
The Court now will turn to the merits of Plaintiff's motion for a temporary restraining order.
II. Plaintiff's Motion for a Temporary Restraining Order
"Temporary restraining orders and preliminary injunctions are extraordinary
a district court must determine that a plaintiff has shown: (1) a likelihood of success on the merits; (2) that absent an injunction [the p]laintiff is likely to suffer irreparable injury that cannot be remedied with monetary damages; (3) that the balance of hardships tips in favor of [the p]laintiff; and (4) that "the public interest would not be disserved" by the issuance of an injunction.
Marks Org., Inc. v. Joles ,
"A showing of irreparable harm is the single most important prerequisite for the issuance of a preliminary injunction." Faiveley Transp. Malmo AB v. Wabtec Corp. ,
"An irreparable injury is one that cannot be redressed through a monetary award. Where monetary damages are adequate compensation, a preliminary injunction[, or a temporary restraining order,] will not issue. Monetary loss will not suffice unless the movant shows damage that cannot be rectified by financial compensation." Goldblatt v. Englander Commc'ns, L.L.C. ,
It is true that "[i]rreparable harm 'exists in a trademark case when the party seeking the injunctiоn shows that it will lose control over the reputation of its trademark pending trial,' because loss of control over one's reputation is neither 'calculable nor precisely compensable.' " NYC Triathlon, LLC v. NYC Triathlon Club, Inc. ,
Notably, Plaintiff does, in fact, seek damages to compensate him for many of the injuries he claims he has or will suffer as a result of Defendants' actions. (Dkt. 1 at 5). In addition, at least at this point in time, Plaintiff has only indicated that Defendants have misused his trademark for a single confined event. Under these circumstances, it is unclear why monetary damages could not be assessed based upon the number and price of the tickets and concessions sold, the number of patrons diverted from Plaintiff, or any other revenue grossed as a result of this single "Crash-O-Rama" event. See Ann Clark, Ltd. v. R & M Int'l, Corp. , No. 1:14-CV-143,
As the Second Circuit has explained, courts must eschew adopting "a 'categoriсal' or 'general' rule or presume that the plaintiff will suffer irreparable harm[, but] ... must actually consider the injury the plaintiff will suffer if he or she loses on the preliminary injunction but ultimately prevails on the merits." Salinger ,
Accordingly, the Court denies Plaintiff's motion for a temporary restraining order.
CONCLUSION
For the foregoing reasons, Plaintiff's motion for a temporary restraining order (Dkt. 2) is denied. However, the Court reserves decision on Plaintiff's motion for a preliminary injunction. The motion for a preliminary injunction will be decided after briefing by Defendants and, if necеssary, an evidentiary hearing and/or oral argument. A status conference is hereby scheduled to take place on Thursday, July 5, 2018, at 3:00 P.M., in the United States Courthouse, 2 Niagara Square, Buffalo, NY 14202-3350. Plaintiff is directed to serve a copy of this Decision and Order by personal delivery and regular mail on all Defendants, and file proof of service of the same, on or before June 25, 2018. All parties and/or their counsel must appear before the Court as scheduled on July 5, 2018. and the failure to do so risks the potential imposition of sanctions.
SO ORDERED.
Notes
The following facts are taken from Plaintiff's affidavit in support of his motion for a temporary restraining order unless otherwise indicated. (Dkt. 2 at 3-7).
It should be noted that Plaintiff is proceeding pro se , and that he commenced this action a mere two days ago, requesting the enjoinment of an evеnt scheduled to take place tomorrow, June 16, 2018. (Dkt. 1; Dkt. 2; Dkt. 4). Since Plaintiff's motion required an expeditious resolution, the Court has not had the benefit of reviewing any responsive arguments from Defendants relating to any of Plaintiff's contentions. Indeed, Defendants have not yet appeared in this action.
To the extent that Plaintiff also states that Defendants committed an act of larcеny pursuant to