CarMax Auto Superstores West Coast, Inc. et al v. Automax Corporation et al

Filing 18

CONSENT DECREE AND ORDER FOR INJUNCTION AND OTHER RELIEF by Judge Percy Anderson: On the joint motion of plaintiffs and defendants 17 , it is hereby ORDERED, ADJUDGED, and DECREED as follows: IT IS ORDERED that defendants AUTOMAX CORPORATION and MIC HAEL F. KHOUNANI, and their officers, agents, representatives, and employees, and all persons in active concert or participation with them, are hereby enjoined, directly or through any corporation, subsidiary, division, website, or other device from: Using a CarMax Trademark or Trade Dress, etc. IT IS FURTHER ORDERED that defendants, jointly and severally, shall pay to plaintiffs the sum of $10,000 in exchange for plaintiffs CARMAX AUTO SUPERSTORES WEST COAST, INC., CARMAX AUTO SUPERSTORES CALIFORNIA, LLC and CARMAX BUSINESS SERVICES, LLC, dismissing the action without prejudice. JUDGMENT IS THEREFORE ENTERED in favor of plaintiffs and against defendants See document for details. ( MD JS-6. Case Terminated ) (gk)

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1 2 3 4 5 6 7 SCHLICHTER & SHONACK, LLP KURT ANDREW SCHLICHTER (CA SBN 172385) STEVEN C. SHONACK (CA SBN 173395) 3601 Aviation Boulevard, Suite 2700 Manhattan Beach, CA 90266 Telephone: (310) 643-0111 Fax: (310) 643-1638 kas@sandsattorneys.com JS-6 Attorneys for Plaintiffs CarMax Auto Superstores West Coast, Inc., CarMax Auto Superstores California, LLC, and CarMax Business Services, LLC 8 9 UNITED STATES DISTRICT COURT 10 FOR THE CENTRAL DISTRICT OF CALIFORNIA – 11 WESTERN DIVISION 12 13 14 15 16 17 18 CARMAX AUTO SUPERSTORES WEST COAST, INC., a California corporation, CARMAX AUTO SUPERSTORES CALIFORNIA, LLC, a Virginia corporation, and CARMAX BUSINESS SERVICES LLC, a Delaware limited liability company, 19 20 Plaintiffs, 21 v. 22 23 24 25 26 27 AUTOMAX CORPORATION, a California corporation, and MICHAEL F. KHOUNANI, an individual, Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. CV10-8097 PA (JEMx) Complaint filed: October 27, 2010 CONSENT DECREE AND ORDER FOR INJUNCTION AND OTHER RELIEF NOTE: CHANGES MADE BY THE COURT 28 1 CONSENT DECREE AND ORDER FOR INJUNCTION AND OTHER RELIEF Whereas plaintiffs CARMAX AUTO SUPERSTORES WEST COAST, 1 2 INC., CARMAX AUTO SUPERSTORES CALIFORNIA, LLC and CARMAX 3 BUSINESS SERVICES, LLC (collectively “CARMAX” or “plaintiffs”) have 4 commenced this action against defendants AUTOMAX CORPORATION 5 (“AUTOMAX”) and MICHAEL F. KHOUNANI (“KHOUNANI”) (collectively 6 “defendants”) by filing the complaint herein; the plaintiffs and defendants 7 (collectively “the parties”) have been represented by counsel whose names appear 8 hereafter; and the parties have agreed to settlement of this action upon the 9 following terms and conditions: NOW, THEREFORE, on the joint motion of plaintiffs and defendants, it is 10 11 hereby ORDERED, ADJUDGED, and DECREED as follows: 1. 12 This is an action for trademark infringement, trademark dilution, trade 13 dress infringement, and unfair competition arising under the Lanham Act, 15 14 U.S.C. §§ 1051 et seq. 2. 15 This Court has jurisdiction over this subject matter and of the parties 16 pursuant to 28 U.S.C. § 1338(a), 28 U.S.C. § 1338(b), 15 U.S.C. § 1121, 15 U.S.C. 17 ch. 22, 28 U.S.C. § 1331, 28 U.S.C. § 1391. 3. 18 Defendants have entered into this Consent Decree and Order for 19 Injunction and Other Relief (“Order”) freely and without coercion and consent to 20 its entry. Defendants further acknowledge that they have read the provisions of 21 this Order and are prepared to abide by them. 4. 22 This Order shall be binding upon defendants and any successors to 23 any interest in any automobile dealerships or automobile service centers owned by 24 them or any other business involved in the sales or servicing of automobiles, 25 automobile parts or automobile-related services. 26 /// 27 /// 28 2 CONSENT DECREE AND ORDER FOR INJUNCTION AND OTHER RELIEF INJUNCTION 1 2 5. IT IS ORDERED that defendants, and their officers, agents, 3 representatives, and employees, and all persons in active concert or participation 4 with them, are hereby enjoined, directly or through any corporation, subsidiary, 5 division, website, or other device from: Using a CarMax Trademark or Trade 6 Dress, including without limitation, a blue, yellow, and white color scheme, dashed 7 underlining, and/or the capitalization structure used by CARMAX, or confusingly 8 similar variations thereof, in connection with the advertising, offering for sale, sale, 9 lease, trade, distribution, or service of automobiles, trucks, or other wheeled 10 vehicles, and auction services related thereto or any other goods or services 11 substantially similar to those of CARMAX, including without limitation sales of 12 and auction services related to used vehicles. 13 14 15 PAYMENT OF SETTLEMENT FUNDS 6. IT IS FURTHER ORDERED that defendants, jointly and severally, 16 shall pay to plaintiffs the sum of Ten Thousand and 00/100 Dollars ($10,000) in 17 exchange for CARMAX dismissing the Action without prejudice. The $10,000 18 payment shall be made in twenty (20) monthly installments of $500.00. Each 19 $500.00 installment is due on the 1st day of the calendar month, except as to the 20 first month where the first payment shall be due within 15 days upon execution of 21 the Agreement, whichever is sooner. All installment payments shall be made 22 payable to “CarMax Auto Superstores California, LLC”, TIN 20-1088059, and 23 mailed directly to CarMax, c/o Kristine Rice, 12800 Tuckahoe Creek Parkway, 24 Richmond, VA 23238. 25 7. In the event of any default payment, which default continues for ten 26 (10) days beyond the due date of payment, the entire unpaid penalty, together with 27 10% interest (accrued from the date of default) shall become due and payable. 28 3 CONSENT DECREE AND ORDER FOR INJUNCTION AND OTHER RELIEF 1 RETENTION OF JURISDICTION & ENFORCEMENT 2 3 4 5 8. The parties expressly agree that the Court shall retain jurisdiction and authority to enforce this Order, even after dismissal with prejudice. 9. Defendants expressly agree that, in the event defendants either violate 6 the injunction set forth in paragraph 5 herein, or default on a payment due plaintiffs 7 pursuant to paragraph 6 herein, which default continues for ten (10) days beyond 8 the due date of payment, defendants shall pay plaintiffs: a) 9 10% (ten percent) interest on any outstanding amount 10 due under paragraph 6 herein from the date of default; 11 and b) 12 Reasonable attorneys’ fees and costs incurred by 13 plaintiffs in any proceeding to enforce this Order as set 14 forth herein; and c) 15 Any damages incurred by plaintiffs due to a violation by 16 defendants of the injunction set forth in paragraph 5 17 herein. 18 10. Defendants expressly waive any right they may have to appeal or seek 19 review of or otherwise challenge this Order or its enforcement. Defendants further 20 agree they will not contest plaintiffs’ right to any payment or money judgment 21 sought by plaintiffs to enforce their rights to any payment or money judgment 22 under this Order as set forth herein. 23 11. In the event defendants violate or fail to comply with this Order in any 24 way, defendants agree that the Declaration of an employee of Schlichter & 25 Shonack, LLP shall be sufficient to establish the exact sum due and owing pursuant 26 to this Order, in accordance with the terms set forth herein, including for 10% 27 interest from the date of default, any amount in damages incurred from breach of 28 4 CONSENT DECREE AND ORDER FOR INJUNCTION AND OTHER RELIEF 1 the injunction, and for reasonable attorneys fees and costs as discussed in 2 paragraph 9 above. 3 4 JUDGMENT IS THEREFORE ENTERED in favor of plaintiffs and against defendants, pursuant to all the terms and conditions recited above. 5 6 7 8 9 Dated: September 13, 2011 ___________________________ Percy Anderson U.S. District Judge 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 CONSENT DECREE AND ORDER FOR INJUNCTION AND OTHER RELIEF The parties hereby consent to the terms and conditions of the Order as set 1 2 forth above and consent to the entry thereof. 3 4 For Defendants: 5 6 Dated: ________, 2011 ____________________________ AUTOMAX CORPORATION By: Michael F. Khounani 7 8 9 10 Dated: ________, 2011 11 ____________________________ Michael F. Khounani 12 13 14 For Plaintiffs: 15 16 17 Dated: ________, 2011 ____________________________ CARMAX AUTO SUPERSTORES WEST COAST, INC. CARMAX AUTO SUPERSTORES CALIFORNIA, LLC CARMAX BUSINESS SERVICES, LLC By: ________________________ 18 19 20 21 22 23 24 /// 25 /// 26 /// 27 /// 28 /// 6 CONSENT DECREE AND ORDER FOR INJUNCTION AND OTHER RELIEF 1 APPROVED AS TO CONTENT AND FORM: 2 3 4 Dated: ________, 2011 SCHLICHTER & SHONACK, LLP 5 /s/ - Kurt A. Schlichter By: KURT A. SCHLICHTER STEVEN C. SHONACK Attorneys for Plaintiffs CarMax Auto Superstores West Coast, Inc., CarMax Auto Superstores California, LLC, and CarMax Business Services, LLC 6 7 8 9 10 11 12 13 Dated: ________, 2011 LAW OFFICES OF JEFFREY T. OSBORN 14 15 16 17 __________________________ Attorney for Defendants AutoMax Corporation and Michael F. Khounani 18 19 20 21 22 23 24 25 26 27 28 7 CONSENT DECREE AND ORDER FOR INJUNCTION AND OTHER RELIEF

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