Committee for Idaho's High Desert v. Yost, CV 94-0089-S-LMB.

• Citation: 881 F. Supp. 1457
• Decision Date: 06 April 1995
• Docket Number: No. CV 94-0089-S-LMB.,CV 94-0089-S-LMB.
• Parties: COMMITTEE FOR IDAHO'S HIGH DESERT, Plaintiff, v. James A. YOST, Ted Hoffman and Quey Johns, doing business as "The Committee for Idaho's High Desert, Inc.," Defendants.
• Court: U.S. District Court — District of Idaho

881 F. Supp. 1457

COMMITTEE FOR IDAHO'S HIGH DESERT, Plaintiff, v. James A. YOST, Ted Hoffman and Quey Johns, doing business as "The Committee for Idaho's High Desert, Inc.," Defendants.

No. CV 94-0089-S-LMB.

United States District Court, D. Idaho.

April 6, 1995.

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David Z. Nevin, Nevin Kofoed & Herzfeld, Laird J. Lucas, Land & Water Fund of the Rockies, Boise, ID, for plaintiff.

Gary D. Babbitt, Hawley Troxell Ennis & Hawley, Boise, ID, for defendants.

FINDINGS OF FACT, CONCLUSIONS OF LAW, MEMORANDUM DECISION AND ORDER

BOYLE, United States Magistrate Judge.

I. INTRODUCTION

Plaintiff brought this action against Defendants, seeking permanent injunctive relief under the Lanham Act, 15 U.S.C. § 1051, et seq. In this action, Plaintiff alleges that Defendants deliberately infringed its trademark or trade name "Committee for Idaho's High Desert" (hereinafter "CIHD") in order to defeat and harm Plaintiff in pursuing its environmental protection activities.

Trial commenced on January 24, 1995 and was heard by the Court sitting without a jury. Plaintiff was represented by Laird J. Lucas and David Z. Nevin, and Defendants were represented by Gary D. Babbitt. At trial, the parties introduced oral and documentary evidence that the Court has carefully and thoroughly considered. Therefore, being fully advised in the premises, the Court enters the following findings of fact, conclusions of law, memorandum decision and order.

II. PROCEDURAL HISTORY

Plaintiff Committee for Idaho's High Desert (hereinafter "Plaintiff") filed the instant action on March 1, 1994 against Jim Yost, Ted Hoffman, Quey Johns, and Committee for Idaho's High Desert, Inc. (hereinafter "Defendant corporation") alleging claims of trademark infringement and unfair competition under the Lanham Act, 15 U.S.C. § 1051, et seq., and under Idaho statutory and common law, as a result of Defendants' incorporation and use of the name "Committee for Idaho's High Desert." Plaintiff's complaint demanded a jury trial, and prayed for injunctive relief, damages, and other relief.

Defendants filed a Motion to Dismiss and/or in the Alternative for Summary Judgment on March 17, 1994 (Docket No. 2). Following briefing by both parties on this motion, an Order Denying Motion to Dismiss was issued by the Hon. Harold L. Ryan, United States District Judge, to whom this case was originally assigned, denying the motion without prejudice and granting Plaintiff leave to file an amended complaint (Docket No. 11). Plaintiff's First Amended Complaint was filed on June 24, 1994 (Docket No. 12). Defendants filed their Answer on August 3, 1994 (Docket No. 16).

All parties consented to reassignment of the instant action to a United States Magistrate Judge pursuant to 28 U.S.C. § 636(c). On July 8, 1994, this action was reassigned to the undersigned.

On September 28, 1994, Defendants filed a Motion for Partial Summary Judgment (Docket No. 29), and on October 24, 1994 Defendants filed another Motion for Summary Judgment (Docket No. 40). By Order dated December 13, 1994, which is incorporated herein by reference, the Court granted in part and denied in part Defendants' motions for summary judgment, dismissing all claims against the individual Defendants and as to all state law claims, but ordering a bench trial for the remaining federal Lanham Act claims which seek injunctive relief.

A four-day bench trial was commenced on January 24, 1995 on Plaintiff's Lanham Act claims, in which the Court considered extensive testimony and documentary evidence. Having carefully considered the testimony and evidence presented at trial, having thoroughly reviewed all of the exhibits admitted into evidence, and having considered arguments and briefs of counsel, the Court hereby makes the following Findings of Fact pursuant to Fed.R.Civ.P. 52(a).

III. FINDINGS OF FACT

To the extent that any conclusions of law contained in Part IV of this order can be considered to be, or are deemed to be, findings of fact, they are incorporated by reference into these findings of fact.

A. The Parties

1. Plaintiff Committee for Idaho's High Desert is a non-profit environmentalist membership organization concerned with a wide variety of activities which include public education, influencing public policy on public lands issues such as cattle grazing and range land reform, water use, recreational use, endangered species issues, the proposed Air Force training range near Mountain Home, Idaho, wilderness designation, and other natural resource issues affecting the desert regions of southwest Idaho, but also to those desert areas reaching into Nevada, Oregon, and Utah.

2. Plaintiff is comprised of a voluntary group of individuals who have formed and joined together over the years for the purpose of prosecuting the aforesaid common interest enterprise.

3. Plaintiff's goal in dealing with these issues is to encourage limited use of public lands with an emphasis on conservation and preservation of the natural state of the desert ecosystem.

4. Plaintiff organized and began conducting business as a non-profit environmental membership organization under the name "Committee for Idaho's High Desert" as early as the late 1970's, led originally by Bruce Boccard and has conducted such activity and business continuously until the time of trial.

5. Plaintiff incorporated under the name "Committee for Idaho's High Desert, Inc." in 1981, but thereafter forfeited its corporate charter in 1985 for failing to file an annual reporting form with the Idaho Secretary of State. Since that time, Plaintiff has operated under the mistaken assumption that it was a corporation in good standing, until it discovered the forfeiture during the Bruneau snail de-listing litigation which will be discussed below.

6. Although Plaintiff believed it was operating as a corporation, it often did so only informally, due to the voluntary, changing, and diverse nature of its membership, the absence of anyone in the organization familiar with proper corporate procedure, and the absence of employment of an attorney.

7. On September 14, 1993, Defendant corporation was incorporated in the State of Idaho under the name "Committee for Idaho's High Desert, Inc." by the three individually named Defendants, James Yost, Ted Hoffman, and Quey Johns, who are its officers, directors, and only members.

8. Until December 16, 1994, James Yost was the Director of Public Affairs of Idaho Farm Bureau ("IFB") which has been an opponent of CIHD in the public debate over the use of Idaho's public lands.

9. Ted Hoffman was the president of Owyhee Cattlemen's Association ("OCA") which has usually been an opponent of CIHD in the public debate over the use of Idaho's public lands. Hoffman's approach to this debate and convictions as to how it should be resolved also differ from CIHD's approach.

10. Quey Johns is the president of Owyhee Farm Bureau ("OFB") and a member of IFB, both of which organizations have been opponents of CIHD in the public debate over the use of Idaho's public lands.

11. Defendant corporation is a non-profit corporation concerned with influencing public policy on the same issues with which Plaintiff is concerned, except its goals and those of its incorporators, the individual named Defendants herein, emphasize maximization of use of public lands for traditional agricultural interests such as farming and ranching. These differing views have made the parties to this action adversaries in the public debate over the use of public lands in Idaho.

B. Background Facts and Events

12. In 1992, Plaintiff and another environmental group, Idaho Conservation League ("ICL"), brought an action against the federal government to require listing of the Bruneau snail as an endangered species. Idaho Conservation League, et al. v. Lujan, Case No. CV 92-0260-S-HLR (D.Idaho 1992). The Bruneau snail was listed as an endangered species in January, 1993 as a result of this referenced litigation.

13. Various agriculture and cattle organizations, including the IFB, OFB, and OCA with whom Defendants were occasionally associated, joined together to form an organization called the "Bruneau Valley Coalition" ("BVC") which subsequently filed a new federal action seeking to have the Bruneau snail "de-listed" as an endangered species. Idaho Farm Bureau et al. v. Babbitt, 839 F.Supp. 739 (D.Idaho 1993).

14. Plaintiff moved to intervene in that suit on September 1, 1993 in order to defend the listing of the Bruneau snail as an endangered species.

15. Shortly after Plaintiff moved to intervene in the snail de-listing litigation, an associate of Defendant James Yost at the Idaho Farm Bureau went to the Idaho Secretary of State's office at the direction of Mr. Yost to check whether Plaintiff and the ICL, against whom they were involved in the snail litigation, were corporations in good standing in Idaho.

16. Having learned that Plaintiff had forfeited its corporate charter in 1985, and without informing Plaintiff of its forfeiture, Defendants immediately, within twenty-four hours of learning of Plaintiff's corporate forfeiture, incorporated the Defendant corporation under the name "Committee for Idaho's High Desert, Inc."

17. Defendants and the BVC then sought to prevent Plaintiff's intervention in the Bruneau snail de-listing litigation on the basis that Plaintiff had no capacity to participate in the action because it had forfeited its corporate charter in 1985 18. Plaintiff first learned of its corporate status and forfeiture when it was brought to the court's attention in the snail de-listing litigation as part of the attempt to prevent Plaintiff's intervention. Plaintiff thereupon promptly sought reinstatement with the Secretary of State for the State of Idaho but was informed that Defendants had incorporated under Plaintiff's exact name. Plaintiff was therefore...