Lens Crafters, Inc. v. Vision World, Inc.

• Decision Date: 26 September 1996
• Docket Number: Civ. No. 3-95-137.
• Citation: 943 F.Supp. 1481
• Parties: LENSCRAFTERS, INC., Plaintiff, v. VISION WORLD, INC., Defendant.
• Court: U.S. District Court — District of Minnesota

943 F.Supp. 1481

LENSCRAFTERS, INC., Plaintiff, v. VISION WORLD, INC., Defendant.

Civ. No. 3-95-137.

United States District Court, D. Minnesota, Third Division.

September 26, 1996.

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ORDER

DAVIS, District Judge.

This matter is before the Court upon Defendant's objections to United States Magistrate Judge Erickson's Report and Recommendation dated August 23, 1996 that granted Plaintiff its motion for summary judgment as to Defendant's Amended Counterclaims. There have been no objections to that portion of the Report and Recommendation denying most of Defendant's motion for partial summary judgment on Plaintiff's claims.

Pursuant to statute, the Court has conducted a de novo review of the record. 28 U.S.C. § 636(b)(1); Local Rule 72.1(c). Based on that review and all the arguments of the parties, the Court ADOPTS the Report and Recommendation in its entirety.

Accordingly, IT IS HEREBY ORDERED that:

1. The Defendant's motion for summary judgment [Docket No. 44] is DENIED in part and GRANTED in part. Defendant is entitled to judgment as to Plaintiff's state law claim of unfair competition and such claim is DISMISSED with prejudice. The remainder of Defendant's motion for summary judgment is DENIED.

2. The Plaintiff's motion for summary judgment on Defendant's Amended Counterclaims [Docket No. 70] is GRANTED in its entirety. Defendant's Amended Counterclaims are DISMISSED with prejudice.

REPORT AND RECOMMENDATION

ERICKSON, United States Magistrate Judge.

At Duluth, in the District of Minnesota, this 23rd day of August, 1996.

I. Introduction

This matter came before the undersigned United States Magistrate Judge pursuant to a general assignment, made in accordance with the provisions of Title 28 U.S.C. § 636(b)(1)(B), upon the following Motions:

1. The Defendant's Motion for Partial Summary Judgment as to certain of the claims contained in the Plaintiff's Amended Complaint; and

2. The Plaintiff's Motion for Summary Judgment as to certain of the claims contained in the Defendant's Amended Counterclaim.

Hearings on these Motions were conducted on March 21 and June 20, 1996, at which the Plaintiff appeared by Peter M. Lancaster and Christopher T. Shaheen, Esqs., and the Defendant appeared by Stephen E. Yoch, Esq.

For reasons which follow, we recommend that the Defendant's Motion be granted in part, and denied in part, and that the Plaintiff's Motion be granted.

II. Factual and Procedural History¹

The parties are competitors in the manufacture and sale of prescription eyeglasses, contact lenses, and other eye care products. The Plaintiff is an Ohio corporation which operates over 600 optical stores throughout the United States, including the State of Minnesota. The Defendant is a Minnesota corporation, which currently operates 34 retail establishments in Minnesota, and in the States that border upon Minnesota.

In the Complaint, and as echoed in the Defendant's Counterclaim, the parties have exchanged accusations that the other has engaged in false and misleading advertising, in violation of both State and Federal law. In its Complaint, the Plaintiff alleges that the Defendant has made false and misleading advertising claims as they relate to the Plaintiff's prices and its product quality. In return, the Defendant alleges that the Plaintiff, in its sales practices and product claims, has made false and misleading representations in its advertising, which have caused injury to the Defendant.

As noted, each party has filed a Motion for partial Summary Judgment. The Defendant seeks Summary Judgment on the Plaintiff's claim that it has engaged in false price advertising, while the Plaintiff seeks Summary Judgment on all of the allegations contained in the Defendant's Amended Counterclaim.

III. Discussion

A. Standard of Review. Summary Judgment is neither an acceptable means of resolving triable issues, nor is it a disfavored procedural shortcut when there are no issues which require the unique proficiencies of a Jury to weigh the evidence and to render credibility determinations. Celotex Corp. v. Catrett, 477 U.S. 317, 327, 106 S.Ct. 2548, 2554-55, 91 L.Ed.2d 265 (1986). A Summary Judgment is warranted "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Rule 56, Federal Rules of Civil Procedure. For these purposes, a disputed fact is "material" if it must inevitably be resolved and the resolution will determine the outcome of the case, while a dispute is "genuine" if the evidence is such that a reasonable Jury could return a verdict for the non-moving party. See, Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986); Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 1355-56, 89 L.Ed.2d 538 (1986) ("An issue of material fact is genuine if it has a real basis in the record.").

As Rule 56(e) makes clear, once the moving party presents a properly supported Motion, the burden shifts to the non-moving party to demonstrate the existence of a genuine dispute. While the Court views the evidence in favor of the nonmoving party and gives that party the benefit of every justifiable inference that may be drawn from that evidence, "an adverse party may not rest upon the mere allegations or denials of the adverse party's pleading, but * * * must set forth specific facts showing that there is a genuine issue for trial." Rule 56(e), Federal Rules of Civil Procedure, [emphasis supplied]; Krenik v. County of Le Sueur, 47 F.3d 953, 957 (8th Cir.1995); State of Nebraska ex rel. Nelson v. Central Interstate Low-Level Radioactive Waste Comm'n., 26 F.3d 77, 80 (8th Cir.1994), cert. denied, ___ U.S. ___, 115 S.Ct. 483, 130 L.Ed.2d 395 (1994); see also, Cram v. Lamson & Sessions Co., 49 F.3d 466, 471 (8th Cir.1995); Barnard v. Jackson County, Missouri, 43 F.3d 1218, 1223 (8th Cir.1995), cert. denied, ___ U.S. ___, 116 S.Ct. 53, 133 L.Ed.2d 17 (1995).

The non-moving party may not rest upon the mere denials or allegations of its pleadings, nor may it simply argue that operative facts will be subsequently developed which will support its claim. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., supra at 586, 106 S.Ct. at 1356 ("[O]pponent must do more than simply show there is some metaphysical doubt as to the material facts."); see, generally, S. Childress, A New Era for Summary Judgments: Recent Shifts at the Supreme Court, 116 F.R.D. 183, 188 (1987).

Moreover, a party is entitled to Summary Judgment where its opponent has failed "to establish the existence of an element essential to [its] case, and on which [it] will bear the burden of proof at trial." Celotex Corp. v. Catrett, supra at 322, 106 S.Ct. at 2552. In such a case, no genuine issue of material fact will be found to exist because "a complete failure of proof concerning an essential element of [that party's] case necessarily renders all other facts immaterial." Id. at 323, 106 S.Ct. at 2552. "In determining whether a material factual dispute exists, the court views the evidence through the prism of the controlling legal standard." Nebraska v. Wyoming, 507 U.S. 584, 590, 113 S.Ct. 1689, 1694, 123 L.Ed.2d 317 (1993). If reasonable minds could differ as to the import of the evidence, however, Summary Judgment should not be granted and, in exercising its function, the Court is not to weigh the evidence. Anderson v. Liberty Lobby, Inc., supra at 250-51, 106 S.Ct. at 2511-12; AgriStor Leasing v. Farrow, 826 F.2d 732, 734 (8th Cir.1987).

B. Legal Analysis. Both parties seek relief against the other for alleged misconduct under the Federal Lanham Act, see Title 15 U.S.C. § 1125(a), and the Minnesota Deceptive Trade Practices Act, see Minnesota Statutes Section 325D.44. In addition, in its Counterclaim, the Defendant alleges that it is entitled to redress under both the Minnesota Unlawful Trade Practices Act, see Minnesota Statutes Section 325D.13, and the Minnesota Consumer Fraud Protection Act, see Minnesota Statutes Sections 325F.68-70. Further, both parties assert a claim for common law unfair competition, and the Plaintiff also accuses the Defendant of engaging in common law disparagement of the Plaintiff's products. Finally, each party requests an award of its fees and costs under Minnesota Statutes Section 325F.67, which prohibits false statements in advertising. We briefly address the standards of review applicable to these causes of action, and proceed to the merits of the parties' respective Motions.

1. Standards of Review.

a. The Lanham Act and Related State Statutes.

The Lanham Act provides a civil remedy for a plaintiff who is injured by a defendant's false or deceptive advertising.² As well, the injured plaintiff may also bring substantially similar claims against the defendant under the Minnesota Deceptive Trade Practices Act,³ the Minnesota Unlawful Trade Practices Act,⁴ and the Minnesota Consumer Fraud Protection Act.⁵ In evaluating any claims that are brought under both the State and Federal Statutes, the Court applies the same analysis. See, Medical Graphics Corp. v. SensorMedics Corp., 872 F.Supp. 643, 649 (D.Minn.1994); Nordale Inc. v. Samsco Inc., 830 F.Supp. 1263, 1272 (D.Minn.1993), aff'd, 86 F.3d 1179 (Fed.Cir. 1996) (Table); Alternative Pioneering v. Direct Innovative Products, 822 F.Supp. 1437, 1441 (D.Minn.1993); Multi-Tech Sys., Inc. v. Hayes Microcomputer Products, Inc., 800 F.Supp. 825, 847 (D.Minn.1992), appeal dismissed, 988 F.2d 130 (Fed.Cir.1993) (Table). Accordingly, to prevail on its claims, the plaintiff must establish the following factors:

1. the defendant made false statements of fact about its own products, or the plaintiff's products, in an advertisement;

2. the...