Lucky Brand Dungarees, Inc. v. Ally Apparel Resources LLC
Docket: No. 05-6127-cv
Court: Court of Appeals for the Second Circuit; October 5, 2006; Federal Appellate Court
Plaintiffs-appellants Lucky Brand Dungarees, Inc. and Liz Claiborne, Inc. appealed the denial of their motion for a preliminary injunction against defendants-appellees Ally Apparel Resources LLC, Key Apparel Resources, Ltd., Marcel Fashion Group, Inc., and Ezra Mizrachi, regarding the "Get Lucky" trademark. The appeal was reviewed under the standard for preliminary injunctions, which requires showing irreparable harm and either a likelihood of success on the merits or serious questions going to the merits with a favorable balance of hardships. The district court found that Lucky Brand did not demonstrate a likelihood of success on its trademark infringement and unfair competition claims. Even if serious questions existed, the balance of hardships did not favor Lucky Brand. The court noted that Lucky Brand's arguments about Marcel’s market expansion and the impact of being a late entry were considered but insufficient to warrant a preliminary injunction. Additionally, Lucky Brand's delay in filing the action raised doubts about their claim of irreparable injury. The appellate court emphasized that it does not express opinions on the ultimate merits of the case or whether it would have acted differently than the district court. It recommended that if a rapid resolution is desired after a preliminary injunction denial, parties should seek an expedited trial. The appellate court affirmed the district court's judgment, finding no legal error or abuse of discretion in the denial of the injunction.