Airs Aromatics LLC v. Mine Hakim et al

Filing 23

ORDER granting defendants Motion to Dismiss plaintiff's complaint 12 , 13 . Defendants motion for sanctions is denied by Judge Dean D. Pregerson. ( MD JS-6. Case Terminated ) (lc) Modified on 5/21/2012 (lc).

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1 2 O 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 12 AIRS AROMATICS, LLC, a Delaware limited liability company, 13 Plaintiff, 14 15 16 17 v. MINE HAKIM, individually and doing business as BIRCH BAY AROMATICS, Defendants. ___________________________ ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. CV 11-08709 DDP (JPRx) ORDER GRANTING DEFENDANT’S MOTION TO DISMISS [Dkt Nos. 12, 13] 18 19 Presently before the court is defendant Mine Hakim (“Hakim”)’s 20 Motion to Dismiss Plaintiff’s Complaint. 21 submissions of the parties and heard oral argument, the court 22 grants the motion and adopt the following order.1 23 I. 24 Having considered the Background This is the latest in a series of disputes regarding the 25 trademarks “Angel Dreams” and “Airs” (“the trademarks”). 26 nonparty AIRS INTERNATIONAL, INC. (“Airs International”) began 27 using the trademarks. (Complaint ¶ 10.) In 1993, As determined during the 28 1 Defendant’s unopposed Request for Judicial Notice (“RJN”) is GRANTED. 1 course of prior litigation in the District of Nevada, nonparty 2 Stephen Marcus (“Marcus”) was the owner and sole shareholder of 3 Airs International. 4 International was facing insolvency. 5 defraud creditors, Marcus caused Airs International to transfer the 6 trademarks to his assistant, Defendant Hakim. 7 result of that fraud, in 2008 the District of Nevada in Air 8 Fragrance Products, Inc. v. Clover Gifts, Inc. 2:05-CV-0960-RCFJ- 9 RJJ (“Clover Gifts”)enjoined Marcus, Hakim, “and any agents, (RJN Ex. A at 9.) By the year 2000, Airs (Id.) As part of a scheme to (Id. at 16.) As a 10 representatives or anyone in concert with or in control of these 11 parties” from claiming rights to the trademarks superior to that of 12 any other party. 13 defunct at the time, was not a party to the Clover Gifts suit. (RJN Ex. A at 17.) Airs International, being 14 At some point subsequent to Clover Gifts, Marcus resurrected 15 Airs International, which then assigned its trademark rights to a 16 new entity, Plaintiff AIRS AROMATICS, LLC (“Plaintiff” or “Airs 17 Aromatics”). 18 Birch Bay Aromatics, has been using the trademarks. 19 15.) 20 competition under the Lanham Act, 15 U.S.C. § 1125(a), and seeking 21 damages and injunctive relief. 22 Plaintiff’s complaint. 23 II. 24 (Compl. ¶ 11.) Defendant Hakim, doing business as (Compl. ¶¶ 12- Airs Aromatics brought the instant suit, alleging unfair Defendant now moves to dismiss Legal Standard A complaint will survive a motion to dismiss when it contains 25 “sufficient factual matter, accepted as true, to state a claim to 26 relief that is plausible on its face.” Ashcroft v. Iqbal, 129 S. 27 Ct. 1937, 1949 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 28 544, 570 (2007)). When considering a Rule 12(b)(6) motion, a court 2 1 must “accept as true all allegations of material fact and must 2 construe those facts in the light most favorable to the plaintiff.” 3 Resnick v. Hayes, 213 F.3d 443, 447 (9th Cir. 2000). 4 complaint need not include “detailed factual allegations,” it must 5 offer “more than an unadorned, the-defendant-unlawfully-harmed-me 6 accusation.” 7 allegations that are no more than a statement of a legal conclusion 8 “are not entitled to the assumption of truth.” Id. at 1950. In 9 other words, a pleading that merely offers “labels and Iqbal, 129 S. Ct. at 1949. Although a Conclusory allegations or 10 conclusions,” a “formulaic recitation of the elements,” or “naked 11 assertions” will not be sufficient to state a claim upon which 12 relief can be granted. Id. at 1949 (citations and internal 13 quotation marks omitted). 14 “When there are well-pleaded factual allegations, a court should 15 assume their veracity and then determine whether they plausibly 16 give rise to an entitlement of relief.” Id. at 1950. Plaintiffs 17 must allege “plausible grounds to infer” that their claims rise 18 “above the speculative level.” Twombly, 550 U.S. at 555- 19 56. “Determining whether a complaint states a plausible claim for 20 relief” is a “context-specific” task, “requiring the reviewing 21 court to draw on its judicial experience and common sense.” Iqbal, 22 129 S. Ct. at 1950. 23 III. Discussion 24 Defendant argues that this case should be dismissed because 1) 25 Plaintiff’s claims are barred be the doctrine of res judicata as a 26 result of the Clover Gifts order enjoining Marcus or anyone in 27 concert with him from asserting rights to the trademarks, and 2) 28 3 1 Plaintiff lacks standing to assert a trademark claim. 2 7,11.) 3 (Mot. at Plaintiff recently brought similar trademark claims against a 4 different defendant in this very court in Airs Aromatics, LLC v. 5 Victoria Secret Stores Brands Management, Inc., Case No. 2:11-CV- 6 04718-R-JC (“Victoria Secret”). 7 Airs International had no trademark rights to the trademarks at 8 issue here, and therefore could not have assigned any such rights 9 to Plaintiff. There, the defendant argued that (RJN Ex. C. at 32.) The court agreed, noting that 10 Airs International was defunct through 2011 and had therefore 11 abandoned any rights to the trademarks it may have once possessed. 12 (Id. at 33.) 13 trademark claims against Defendant here. 14 Inc. v. Shore, 439 U.S. 322, 327-328 (1979) (describing defensive 15 collateral estoppel); Collins v. D.R. Horton, Inc., 505 F.3d 874, 16 881 (9th Cir. 2007)(distinguishing offense and defensive estoppel). 17 IV. 18 19 Accordingly, Plaintiff is estopped from raising See Parklane Hosiery Co., Conclusion For the reasons stated above, Defendant’s Motion to Dismiss Plaintiff’s Complaint is GRANTED.2 20 21 IT IS SO ORDERED. 22 23 Dated: May 21, 2012 DEAN D. PREGERSON United States District Judge 24 25 26 27 28 2 Defendant’s Motion for Sanctions is DENIED. The court notes that Plaintiff has appealed the court’s order dismissing the Victoria Secret case. 4

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