floyd's 99 v. chavalo 77 - floyd's barbershop trademark complaint.pdf

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1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Joshua P. Kweller (SBN 254834) Email: [email protected] MOYE WHITE LLP 16 Market Square, 6 th Floor 1400 16 th Street Denver, CO 80202 Telephone: 303.292-2900 Facsimile: 303.292-4510 Attorney for Plaintiff Floyd’s 99 Holdings, LLC UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA FLOYD’S 99 HOLDINGS, LLC, a Colorado limited liability company Plaintiff, v. CHAVALO 77 INC., Defendant. ) ) ) ) ) ) ) ) Case No. ______________________ COMPLAINT FOR: Trademark infringement, false designation of origin and unfair competition COMPLAINT Plaintiff, Floyd’s 99 Holdings, LLC, through its attorneys, Moye White LLP, for its Complaint against Defendant Chavalo 77 Inc. (“Defendant”), states as follows: INTRODUCTION AND NATURE OF THE ACTION 1. This is an action under the trademark laws of the United States and the common law for infringement, false designation of origin and unfair Case 2:16-cv-03108-PSG-AFM Document 1 Filed 05/05/16 Page 1 of 13 Page ID #:1

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Page 1: Floyd's 99 v. Chavalo 77 - Floyd's Barbershop trademark complaint.pdf

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Joshua P. Kweller (SBN 254834)

Email: [email protected]

MOYE WHITE LLP

16 Market Square, 6th Floor

1400 16th

Street

Denver, CO 80202

Telephone: 303.292-2900

Facsimile: 303.292-4510

Attorney for Plaintiff Floyd’s 99 Holdings, LLC

UNITED STATES DISTRICT COURT

FOR THE CENTRAL DISTRICT OF CALIFORNIA

FLOYD’S 99 HOLDINGS, LLC, a

Colorado limited liability company

Plaintiff,

v.

CHAVALO 77 INC.,

Defendant.

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Case No. ______________________

COMPLAINT FOR:

Trademark infringement, false

designation of origin and unfair

competition

COMPLAINT

Plaintiff, Floyd’s 99 Holdings, LLC, through its attorneys, Moye White

LLP, for its Complaint against Defendant Chavalo 77 Inc. (“Defendant”), states as

follows:

INTRODUCTION AND NATURE OF THE ACTION

1. This is an action under the trademark laws of the United States and

the common law for infringement, false designation of origin and unfair

Case 2:16-cv-03108-PSG-AFM Document 1 Filed 05/05/16 Page 1 of 13 Page ID #:1

Page 2: Floyd's 99 v. Chavalo 77 - Floyd's Barbershop trademark complaint.pdf

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competition. Plaintiff seeks, among other things, an injunction enjoining

Defendant and those acting in concert with it from wrongful and unlawful use of

Plaintiff’s trademarks.

PARTIES, JURISDICTION AND VENUE

2. Plaintiff is a Colorado limited liability company with its principal

place of business at 5340 S. Quebec, Suite 205N, Greenwood Village, Colorado

80111.

3. Defendant is a California corporation with its principal place of

business located at 7219 Atlantic Ave., Cudahy, California 90201.

4. This Court has original subject matter jurisdiction over this action

pursuant to 28 U.S.C. § 1338(a) & (b). Additionally, this Court has supplemental

jurisdiction over Plaintiff’s common law and state statutory claims pursuant to

28 U.S.C. § 1367(a).

5. Venue is proper in this Court under 28 U.S.C. § 1391(b)(1) & (2) and

(c) as Defendant resides within this judicial district, and because a substantial part

of the events or omissions giving rise to the relief sought herein occurred in this

district.

FACTS

6. Plaintiff commenced operations as a barbershop in or about 2001, and

provides services in several states, including California.

Case 2:16-cv-03108-PSG-AFM Document 1 Filed 05/05/16 Page 2 of 13 Page ID #:2

Page 3: Floyd's 99 v. Chavalo 77 - Floyd's Barbershop trademark complaint.pdf

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7. Since its founding, Plaintiff has created, employed, and marketed its

services under various distinctive trademarks and trade dress at great expense.

8. Plaintiff’s trademarks and trade dress have become readily recognized

by consumers and associated with Plaintiff, and comprise an extremely valuable

asset of Plaintiff’s business.

9. Among the trademarks adopted by Plaintiff are a distinctive logo first

used by Plaintiff as early as June 2006:

10. Plaintiff has also created, developed, and employed in its business a

highly distinctive interior design, featuring a “Poster Wall,” by which Plaintiff has

come to be recognized by consumers. Plaintiff’s interior design is a federally

registered and incontestable United States Trademark, Reg. No. 3467850. A copy

of Plaintiff’s U.S. Trademark registration is attached hereto as Exhibit A.

11. Defendant was incorporated in California on March 10, 2014.

12. In or about July 2014, Plaintiff became aware that Defendant had

opened and was operating a barbershop at 7219 Atlantic Ave., Cudahy, California

Case 2:16-cv-03108-PSG-AFM Document 1 Filed 05/05/16 Page 3 of 13 Page ID #:3

Page 4: Floyd's 99 v. Chavalo 77 - Floyd's Barbershop trademark complaint.pdf

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90201, only miles from Plaintiff’s existing Los Angeles locations in Encino,

Hermosa Beach, Venice, Melrose, Santa Monica, Mar Vista, Studio City, and

Burbank.

13. As shown in the side-by-side comparison photographs below, the

interior and exterior signage used by Defendant constituted wholesale

misappropriation of Plaintiff’s trademarks and trade dress:

Case 2:16-cv-03108-PSG-AFM Document 1 Filed 05/05/16 Page 4 of 13 Page ID #:4

Page 5: Floyd's 99 v. Chavalo 77 - Floyd's Barbershop trademark complaint.pdf

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14. By letter dated July 25, 2014, Plaintiff made a formal demand upon

Defendant to cease and desist infringement of its trademark and trade dress. See

Exhibit B, Letter to Defendant.

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Page 6: Floyd's 99 v. Chavalo 77 - Floyd's Barbershop trademark complaint.pdf

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15. Apparently in response to Plaintiff’s demand, Defendant changed its

interior signage, but persisted in infringing Plaintiff’s exterior signage and interior

design.

16. Plaintiff made a second demand upon Defendant regarding the

continuing infringement of its trademarks and trade dress by letter dated October

17, 2014. See Exhibit C, Second Letter to Defendant.

17. A recent inspection of Defendant’s premises has revealed that

Defendant’s infringement of Plaintiff’s trademarks and trade dress continues

unabated.

FIRST CLAIM FOR RELIEF

(Lanham Act – Unfair Competition – False Designation Of Origin under 15

U.S.C. § 1125(a))

18. Plaintiff incorporates each and every allegation of this Complaint.

19. Plaintiff has expended considerable effort, skill, and capital promoting

its barbershop under its trademarks and trade dress commencing long before

Defendant was formed.

20. As a result, Plaintiff’s trademarks and trade dress have become

associated with Plaintiff’s services, and have acquired substantial goodwill with

consumers.

21. Upon information and belief, Defendant had actual knowledge of

Plaintiff, its trademarks and trade dress, before it opened for business, and willfully

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infringed the same.

22. Defendant had constructive notice of Plaintiff’s trademark registration

for the Poster Wall before opening for business.

23. Defendant’s acts, practices, and conduct constitute unfair competition,

false designation of origin, and false or misleading descriptions or representations

of fact in that they are likely to cause confusion or mistake, or deceive the public

into believing there is an affiliation, connection, or association between Defendant

with Plaintiff, or believing that Defendant’s services originate from, are sponsored

by, or approved of by Plaintiff, in violation of 15 U.S.C. § 1125(a).

24. As a direct and proximate result of Defendant’s infringement, Plaintiff

has and is likely to be substantially injured in its business, including its goodwill

and reputation, resulting in lost revenues and profits, and diminished goodwill.

25. Plaintiff has no adequate remedy at law because its trademarks and

trade dress represent to the public the identity, reputation, and goodwill of Plaintiff

such that damages alone cannot fully compensate Plaintiff for Defendant’s

misconduct.

26. Unless enjoined by the Court, Defendant and those acting in concert

with it will continue to use and infringe Plaintiff’s trademarks and trade dress to

the irreparable injury of Plaintiff. This threat of future injury to the business

identity, goodwill, and reputation of Plaintiff requires injunctive relief to prevent

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Defendant’s continued use of Plaintiff’s trademarks and trade dress, and to

ameliorate and mitigate injuries of Plaintiff.

27. Plaintiff is entitled to preliminary and permanent injunctions enjoining

Defendant from any future use of Plaintiff’s trademarks and trade dress.

28. Plaintiff is entitled to an accounting of Defendant’s earnings and

revenues for the time period in which it has used Plaintiff’s trademarks and trade

dress without authorization. Plaintiff is entitled to recover damages equal to

Defendant’s profits, all damages sustained by Plaintiff, and the costs of the action.

SECOND CLAIM FOR RELIEF

(Unfair Competition – Common Law)

29. Plaintiff incorporates each and every allegation of this Complaint.

30. Defendant’s actions, as set forth herein, constitute unfair competition

in that they have the natural and probable tendency to deceive so as to pass off the

business of one person as and for that of another.

31. Plaintiff is entitled to preliminary and permanent injunctive relief

against Defendant’s continued use of Plaintiff’s trademarks and trade dress in

connection with its barbershop.

32. Plaintiff is entitled to recover damages, and to receive other equitable

relief, as determined by the Court, including permanent injunctive relief.

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Page 9: Floyd's 99 v. Chavalo 77 - Floyd's Barbershop trademark complaint.pdf

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THIRD CLAIM FOR RELIEF

(Violation of the California Model State Trademark Law,

California Business and Professions Code Sections 14200 et seq.)

33. Plaintiff incorporates each and every allegation of this Complaint.

34. Defendant has used, without Plaintiff’s consent, Plaintiff’s trademarks

in a manner likely to mislead the public and cause confusion or mistake, or deceive

the public into believing there is an affiliation, connection, or association between

Defendant with Plaintiff, or believing that Defendant’s services originate from, are

sponsored by, or approved of by Plaintiff.

35. Defendant’s acts, practices, and conduct significantly impact the

public as actual or potential consumers of Plaintiff’s services.

36. Plaintiff has suffered injury to a legally protected interest as a result of

Defendant’s acts, practices, and conduct.

37. Plaintiff has been injured as a result of Defendant’s acts, practices,

and conduct.

FOURTH CLAIM FOR RELIEF

(Misappropriation of Business Values and Goodwill)

38. Plaintiff incorporates each and every allegation of this Complaint.

39. Defendant’s unauthorized use of Plaintiff’s trademarks and trade

dress, as set forth above, constitutes misappropriation of Plaintiff’s valuable

goodwill, reputation, and business values.

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40. Plaintiff has expended substantial time, labor, skill, and money in

developing its trademarks and trade dress for barbershop services since as early as

2001.

41. As a result, Plaintiff’s trademarks and trade dress have developed

significant goodwill in the market and have come to represent the highest standards

of quality and service.

42. Defendant has misappropriated Plaintiff’s goodwill and is using that

goodwill for its direct benefit and profit.

43. Defendant’s misappropriation of Plaintiff’s trademarks and trade dress

and goodwill has wrongfully interfered with Plaintiff’s business.

44. Defendant has unfairly profited from its misappropriation of

Plaintiff’s goodwill and business values and has capitalized on their commercial

value, causing Plaintiff damages in an amount to be proven at trial.

45. Plaintiff is entitled to an accounting of Defendant’s earnings and

revenues and damages for Defendant’s unauthorized misappropriation of

Defendant’s goodwill and business values.

FIFTH CLAIM FOR RELIEF

(Unjust Enrichment)

46. Plaintiff incorporates each and every allegation of this Complaint.

47. Defendant knowingly used Plaintiff’s trademarks and trade dress

under circumstances which would make it unjust for Defendant to retain the

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benefit without paying Plaintiff.

48. Defendant has retained this benefit at the expense of Plaintiff.

49. Plaintiff is entitled to an accounting, the imposition of a constructive

trust, and disgorgement of Defendant’s profits.

PRAYER FOR RELIEF

WHEREFORE, Plaintiff prays for the following relief:

1. A preliminary and permanent injunction directing Defendant to

remove all infringing exterior and other signage and the Poster Wall;

2. An order requiring Defendant to promptly cease and desist all

advertising which uses any reproduction of the infringing trademarks and trade

dress, or any other confusingly similar designation, in all media including Internet

websites and social media, newspapers, magazines, flyers, coupons, promotions,

signs, telephone books, telephone directory assistance listings and mass mailings,

all at Defendant’s cost;

3. A preliminary and permanent injunction enjoining Defendant, its

directors, officers, agents, servants, employees and attorneys, and all others in

active concert or participation with them from:

a. Using the Plaintiff’s trademarks or trade dress, or any

trademark, service mark, logo, trade name, or trade dress that is confusingly

similar to Plaintiff’s;

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b. Otherwise infringing Plaintiff’s trademarks or trade dress;

c. Passing off any of its products or services as those of Plaintiff;

d. Causing a likelihood of confusion or misunderstanding as to the

source or sponsorship of its businesses, products or services; and

e. Causing a likelihood of confusion or misunderstanding as to its

affiliation, connection or association with Plaintiff or any of Plaintiff’s products or

services;

4. An order requiring Defendant to file with the Court and to serve upon

Plaintiff’s counsel within ten (10) days after entry of any injunction or order issued

herein, a written report, under oath, setting forth in detail the manner in which it

has complied with such injunction or order;

5. An accounting of Defendant’s revenue, earnings and profits for the

purpose of determining damages;

6. An order that Defendant account and pay over to Plaintiff all gains,

profits and advantages derived by it as a result of its infringement of Plaintiff’s

trademarks or trade dress and unfair competition, and misappropriation of

goodwill, business values, and unjust enrichment;

7. An award of the costs and expenses, including reasonable attorney’s

fees, incurred by Plaintiff in connection with this action as provided for by statute;

8. An award of prejudgment interest; and

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9. For such other and further relief as the Court deems just and

appropriate.

Respectfully submitted, this 5th day of May, 2016.

MOYE WHITE LLP

/s/ Joshua P. Kweller

Joshua P. Kweller (SBN 254834)

Attorneys for Plaintiff

Case 2:16-cv-03108-PSG-AFM Document 1 Filed 05/05/16 Page 13 of 13 Page ID #:13