Marcel Fashions Group, Inc. v. Lucky Brand Dungarees, Inc., No. 17-0361 (2d Cir. 2018)Annotate this Case
Marcel filed suit against Lucky Brand under the Lanham Act for infringing on Marcel's "Get Lucky" trademark through its use of "Lucky" on its merchandise. Marcel also alleged that Lucky Brand did so in violation of an injunction entered in an earlier action between the parties. The district court dismissed the complaint, concluding that Marcel released its claims through a 2003 settlement agreement that resolved an earlier substantially similar litigation between the parties.
The Second Circuit vacated the judgment, holding that res judicata precluded Lucky Brand from raising its release defense in this case. The court held that under certain conditions parties may be barred by claim preclusion from litigating defenses that they could have asserted in an earlier action, and that the conditions here warranted application of that defense preclusion principle. Accordingly, the court remanded for further proceedings.