Luv N' Care, Ltd. v. Groupo Rimar, No. 16-30039 (5th Cir. 2016)Annotate this Case
Luv N’ Care, Ltd. (“LNC”) brought this breach of contract action against its former distributor, Groupo Rimar, a.k.a. Suavinex, S.A. (“Suavinex”), for selling two products that allegedly copied LNC’s product designs in violation of the parties’ 2012 Termination Agreement and Mutual Release. LNC sought damages as well as an injunction prohibiting Suavinex from selling the offending products. Suavinex raised counterclaims seeking a declaratory judgment that it did not breach the contract and that LNC was not entitled to an injunction. It moved for partial summary judgment on those claims. The district court granted Suavinex’s motion, finding that Suavinex did not breach the Termination Agreement because it did not apply to product designs that were already in the public domain, such as the two products at issue. The Fifth Circuit concluded that the plain language of the Termination Agreement contained no such limitation. Accordingly, the Court reversed.