Especias Montero, Inc. v. Best Seasonings Grp.

Decision Date23 September 2022
Docket NumberCIVIL 20-1740 (GLS)
PartiesESPECIAS MONTERO, INC. Plaintiff/Counter Defendant v. BEST SEASONING GROUP, INC. D/B/A SOFRITO MONTERO Defendant/Counter Plaintiff
CourtU.S. District Court — District of Puerto Rico
OPINION AND ORDER

GISELLE LOPEZ-SOLER UNITED STATES MAGISTRATE JUDGE

Plaintiff Especias Montero, Inc. (Especias) and Defendant Best Seasonings Group, Inc. (Best Seasonings) are local competitors that produce, sell, and distribute spices and seasonings, among other products. Especias registered the mark ESPECIAS MONTERO DESDE 1959 in the U.S Patent and Trademark Office (“USPTO”). Especias claims that Best Seasonings is infringing its trademark and filed this action seeking a preliminary and permanent injunction, as well as damages, for trademark infringement under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), and the Puerto Rico Trademark Act, 10 P.R. Laws Ann § 223 et seq., and for unfair competition and unjust enrichment under Article 26 of the Puerto Rico Civil Code. Docket Nos. 1 and 6. Best Seasonings filed a counterclaim in the alternative seeking a declaration that the purportedly infringing mark (ESPECIAS NATURALES BY SOFRITO MONTERO) was in use prior to Especias' first use in commerce of ESPECIAS MONTERO DESDE 1959 and its subsequent registration in the USPTO. Docket No. 32. Especias' damages claims were dismissed by stipulation. Docket Nos. 52 and 54. Pending before the Court is Best Seasonings' request for summary judgment on the claims for equitable relief. Docket No. 74. For the reasons discussed below, Best Seasonings' motion for summary judgment is GRANTED.

I. Standard of Review

Summary judgment under Rule 56 of the Federal Rules of Civil Procedure is warranted when the moving party demonstrates that “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a). A dispute is considered genuine if “a reasonable jury, drawing favorable inferences, could resolve it in favor of the nonmoving party.” Velazquez-Perez v. Developers Diversified Realty Corp., 753 F.3d 265, 270 (1st Cir. 2014)(citation omitted). A fact is “material” if it potentially affects the outcome of the suit. American Steel Erectors, Inc. v. Local Union No. 7, 536 F.3d 68, 75 (1st Cir. 2008). However, [c]onclusory allegations, improbable inferences, and unsupported speculation are insufficient to establish a genuine dispute of fact.” Velazquez-Perez, 753 F.3d at 270 (citations omitted).

A party moving for summary judgment bears the burden of proving that there are no genuine issues of material fact and that judgment as a matter of law is warranted. Adickes v. S.H. Kress & Co., 398 U.S. 144 (1970). The moving party “may affirmatively produce evidence that negates an essential element of the non-moving party's claim” or “point to evidentiary materials already on file [...] that demonstrate that the non-moving party will be unable to carry its burden of persuasion at trial.” Carmona v. Toledo, 215 F.3d 124, 132 (1st Cir. 2000) (citing Celotex Corp. v. Catrett, 477 U.S. 317)). [I]f the summary judgment record satisfactorily demonstrates that the plaintiff's case is, and may be expected to remain, deficient in vital evidentiary support, this may suffice to show that the movant has met its initial burden.” Carmona, 215 F.3d at 133; Ocasio-Hernandez v. Fortuno-Burset, 777 F.3d 1, 4-5 (1st Cir. 2015).

Even though infringement cases “often present factual issues that render summary judgement inappropriate, this is not invariably so.” Copy Cop, Inc. v. Task Printing, Inc., 908 F.Supp. 37, 43 (1st Cir.1995)(citing Boston Athletic Ass'n v. Sullivan, 867 F.2d 22, 24 (1st Cir. 1989); Volkswagenwerk Aktiengesellschaft v. Wheeler, 814 F.2d 812, 814 (1st Cir.1987)). In some infringement cases, “the Court may determine that the facts have been fully developed through pleadings, affidavits, documents and exhibits and that the legal issues are squarely presented.” Pignons S. A. de Mecanique de Precision Corp. v. Polaroid Corp., 498 F.Supp. 805, 809-810 (D. Mass. 1980), aff'd 657 F.2d 482, 487 (1st Cir. 1981).

Pursuant to Local Rule 56 of the Local Rules of the District Court for the District of Puerto Rico, a party opposing a motion for summary judgment must submit a statement admitting, denying or qualifying each of the facts set forth by the moving party in its statement of uncontested facts in support of the motion for summary judgment. This is accomplished by making individual reference to each numbered paragraph of the moving party's statement of uncontested facts. Local Rule 56 (c) and (e). The purpose of Local Rule 56 is to “relieve the district court of any responsibility to ferret through the record to discern whether any material fact is genuinely in dispute”. CMI Capital Mkt. Inv., LLC v. Gonzalez-Toro, 520 F.3d 58, 62 (1st Cir. 2008). Local Rule 56 admonishes that the facts that are not specifically denied, qualified or otherwise properly controverted by the non-moving party are deemed admitted by the Court. Local Rule 56 (c) and (e). The First Circuit has “held with a regularity bordering on the monotonous that parties ignore the strictures of an ‘anti-ferret' rule at their peril.” Puerto Rico Am. Ins. Co. v. Rivera Vazquez, 603 F.3d 125, 131 (1st Cir 2010).

Best Seasonings submitted a Statement of Uncontested Material Facts at Docket No. 72 (“SUF”). Especias submitted its own statement of facts in Docket No. 84 (“PSUF”). Especias' statement does not reference by numbered paragraphs the facts proposed by Best Seasonings; it merely includes a list of its own proposed facts. This is exactly what is proscribed in Local Rule 56(c). Especias did not “admit, deny or qualify the uncontested facts proposed by the moving party.”. Therefore, the materials facts proposed by Best Seasonings in Docket No. 72, which have been properly supported by evidence on the record, are deemed admitted. See Mariani-Colon v. Dept of Homeland Security, 511 F.3d 216, 219 (1st Cir. 2007) ([S]ubmitting an ‘alternate statement of facts' [..] justifies the issuance of a “deeming order” which characterizes defendant's assertions of fact as uncontested”) (emphasis ours).

II. Uncontested Facts

Having reviewed the submissions by both sides, the Court finds that the following material facts are not in dispute:

1. In 1959, Especias was founded by Efram Montero Acobes and Julia Ruiz Colon. Docket No. 84, PSUF ¶ 1.
2. Especias operates as a family business dedicated to the production, sale and distribution of spices, spice extracts and seasonings. PSUF ¶ 11.
3. Especias' principal place of business is in Ponce, in the southern part of Puerto Rico. PSUF ¶ 22.
4. Especias has used the words ESPECIAS and MONTERO (as ESPECIAS MONTERO) in its bottles and marketing since 1959. PSUF ¶ 2.
5. Especias sells and distributes its products to more than two hundred (200) supermarkets, independent grocers, and wholesalers in the Puerto Rico market. Especias also sells its products through Brands of Puerto Rico, an e-commerce platform. PSUF ¶¶ 4, 7.
6. When Efraín Montero Acobes passed away in 1987, his son Efraín Montero Ruiz (Montero Ruiz) served as president of Especias until 1989. PSUF ¶¶ 13-14, 16. Especias' current president is Montero Ruiz' brother, Pedro Montero Ruiz. PSUF ¶24.
7. Montero Ruiz founded Sofrito Montero. PSUF ¶ 17.
8. In 2011, Montero Ruiz' son, Efram Montero Arroyo (Montero Arroyo), incorporated Best Seasonings d/b/a/ Sofrito Montero, and currently serves as its president. Docket No. 72, SUF ¶¶ 6, 7, 8; Docket 72-1, “Registry of Corporations and Entities”.
9. Best Seasonings operates as a family business dedicated to the sale of sofrito, spices, seasonings, adobo, and other products. PSUF ¶ 12.
10. Best Seasonings' principal place of business is in Juana Díaz, in the southern part of Puerto Rico. PSUF ¶22.
11. Best Seasonings produces, sells, and distributes spices and seasoning products under the brands SOFRITO MONTERO, MONTERO and ESPECIAS NATURALES BY SOFRITO MONTERO. SUF ¶ 11.
12. Best Seasonings sells its products in supermarkets, pharmacies, restaurants, wholesalers and through its website www.sofritomontero.com. PSUF ¶¶ 6, 8; Docket No. 91 at ¶ 6.
13. Best Seasonings promotes its products through social media accounts on Facebook, Instagram, and YouTube, and through its own website. PSUF ¶ 9. Best Seasonings also promotes its products on retail points of sale. PSUF ¶ 41.
14. In 2017, Especias rebranded its products and marketing strategies, using the following mark developed by Mabel Pola Montero (PSUF ¶ 31):
Image Omitted
15. Other market participants that sell spices under marks such as Goya and Badía also use green leaves as part of the design of their marks in the package for spices. SUF ¶ 54.
16. In 2017, Especias opened a Facebook account and an Instagram page and relaunched its website containing its mark. PSUF ¶¶ 10, 33.
17. In June 2017, Especias filed for registration of its mark in the USPTO. PSUF ¶ 34. 18. Per the USPTO's Office Action of December 10, 2017, the term “especias” translates to the generic term “spices”. Docket 72-4, USPTO Office Action, 12/10/17.
19. In June 2018, Especias launched its branding and marketing campaign using the mark in the press, social media and in the marketplace. PSUF ¶¶ 38; 41.
20. Best Seasonings promotes one of its products as ESPECIAS NATURALES BY SOFRITO MONTERO. PSUF ¶ 42. The design of this product's label includes a cook's hat, leaves and white or brown letters (PSUF ¶¶ 42, 44):
Image Omitted
21. On August 7, 2018, the USPTO registered the mark ESPECIAS MONTERO DESDE 1959. Docket No. 72-5, USPTO Certificate of Registration. The certificate of registration provides that [n]o claim is made to the
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