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LPD N.Y., LLC v. Adidas Am., Inc.

Citation: 295 F. Supp. 3d 275Docket: 15–CV–6360 (MKB) (RLM)

Court: District Court, E.D. New York; December 10, 2017; Federal District Court

Narrative Opinion Summary

This case involves a legal dispute between LPD New York, LLC and Adidas America, Inc., along with Adidas AG, arising from alleged breach of contract, defamation, and unjust enrichment claims, and a request for declaratory relief concerning trademark use. Initially, the court dismissed LPD's breach of contract and declaratory judgment claims while allowing defamation and unjust enrichment claims to proceed. LPD objected to the dismissal, arguing a binding contract existed through email exchanges discussing collaboration on streetwear designs. However, the court, following Magistrate Judge Mann’s recommendations, concluded no binding contract existed without a formal written agreement and dismissed LPD’s breach of contract claim. The court also denied LPD’s motion for reconsideration, asserting that LPD failed to present overlooked facts or legal errors. LPD’s request for Rule 54(b) certification for appeal was declined due to the interconnected nature of the remaining claims. The denial of Adidas AG's motion to dismiss for lack of personal jurisdiction further complicated the proceedings, as the court found insufficient evidence to distinguish between the actions of Adidas America and Adidas AG. Consequently, the court maintained its original ruling, denying LPD both reconsideration and certification for appeal.

Legal Issues Addressed

Breach of Contract under Rule 12(b)(6)

Application: The court dismissed LPD's breach of contract claim due to the absence of a binding contract, as LPD did not demonstrate that both parties intended to be bound without a formal written contract.

Reasoning: The Court reviewed LPD's objections de novo and, in March 2017, upheld the dismissal of LPD's breach of contract claim, affirming that LPD did not establish a binding contract with Defendants.

Declaratory Judgment Act and Trademark Use

Application: LPD's claim under the Declaratory Judgment Act was dismissed as the court found that the Defendants maintained sufficient control over their trademarks, negating LPD's trademark abandonment claim.

Reasoning: Judge Mann recommended dismissal of LPD's trademark abandonment claims, noting Defendants maintained sufficient control over LPD's use of their trademarks.

Lack of Personal Jurisdiction

Application: Adidas AG's motion to dismiss for lack of personal jurisdiction was denied, complicating the differentiation of allegations between Adidas America and Adidas AG.

Reasoning: Subsequently, Adidas AG moved to dismiss the complaint for lack of personal jurisdiction and failure to state a claim. The court denied this motion.

Motion for Reconsideration Standard

Application: LPD's motion for reconsideration was denied as it failed to identify controlling decisions or overlooked data that could change the court's conclusion.

Reasoning: A motion for reconsideration is considered an extraordinary remedy, and the Court will not revisit previously examined issues simply because a party is dissatisfied with the outcome.

Rule 54(b) Certification for Appeal

Application: The court declined to certify LPD's contract formation issue for appeal, considering the interconnectedness of the claims related to quasi-contract and unjust enrichment.

Reasoning: The court ultimately denies LPD's motion for reconsideration and declines to certify the contract formation issue for appeal.