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Living Color Enters., Inc. v. New Era Aquaculture, Ltd.

Living Color Enters., Inc. v. New Era Aquaculture, Ltd.

United States District Court for the Southern District of Florida

April 3, 2015, Decided; April 3, 2015, Filed

CASE NO. 14-62216-CIV-MARRA

Opinion

OPINION AND ORDER

This cause is before the Court upon Defendant John T. O'Rourke's Motion to Dismiss (DE 32); Defendant New Era Aquaculture, Ltd.'s Motion to Dismiss the Complaint (DE 33); Defendant Aqua-Tech Co.'s Motion to Dismiss (DE 34) and Defendant Daniel Leyden's Motion to Dismiss (DE 35). The motions are fully briefed and ripe for review. The [*2]  Court has carefully considered the Motions and is otherwise fully advised in the premises.

I. Background

Plaintiff Living Color Enterprises, Inc. ("Plaintiff" "Living Color") filed a fourteen-count Complaint against Defendants New Era Aquaculture, Ltd. ("New Era"), Aqua-Tech Co. ("Aqua-Tech"), John T. O'Rouke ("JT") and Daniel Leyden ("Leyden") (collectively, "Defendants"). (DE 1.) The Complaint brings claims for declaratory judgment against New Era (count one), trademark infringement against all Defendants (count two), federal unfair competition against all Defendants (count three), common law unfair competition against all Defendants (count four), breach of non-compete agreement against JT (count five), breach of fiduciary duty against JT (count six), breach of fiduciary duty against Leyden (count seven), aiding and abetting breaches of fiduciary duty against New Era (count eight), aiding and abetting breaches of fiduciary duty against Aqua-Tech (count nine), tortious interference with advantageous business relationships against Aqua-Tech (count ten), tortious interference with advantageous business relationships against New Era (count eleven), tortious interference with advantageous [*3]  business relationships against JT (count twelve), tortious interference with advantageous business relationships against Leyden (count thirteen) and misappropriation of trade secrets pursuant to Florida Statute ¶ 688.001 against all Defendants (count fourteen).

According to the allegations of the Complaint, New Era is a premium food manufacturer which developed a unique process for manufacturing high-quality and nutritious marine animal food. (Compl. ¶ 10.) Prior to 2009, New Era had no avenue for marketing and/or distributing its products in the North American market. (Compl. ¶ 11.) On or about August 10, 2009, Plaintiff and New Era entered into a business relationship in which Plaintiff became the exclusive distributor for New Era products in the United States. (Compl. ¶ 12.) Along with entering into that business relationship, New Era relinquished ownership of the trademark rights for New Era (the "Mark") in the United States to Plaintiff . (Compl. ¶ 13.) From 2009 through 2014, Plaintiff continuously used the Mark in interstate commerce without objection by New Era. (Compl. ¶ 14.) Living Color invested significant resources into the development of the New Era brand and product. [*4]  (Compl. ¶ 15.) As a result of these investments, New Era developed significant goodwill in the United States, earning a reputation for quality within the industry and the Mark became an established, high-tier brand of marine animal food. (Compl. ¶ 16.)

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2015 U.S. Dist. LEXIS 44121 *; 2015 WL 1526177

LIVING COLOR ENTERPRISES, INC., a Florida corporation, Plaintiff, vs. NEW ERA AQUACULTURE, LTD., a United Kingdom Private limited company et al., Defendants.

Subsequent History: Sanctions disallowed by Living Color Enters. v. New Era Aquaculture Ltd., 2016 U.S. Dist. LEXIS 39113 (S.D. Fla., Mar. 22, 2016)

Motion granted by, in part, Motion denied by, in part, Summary judgment granted, in part, summary judgment denied, in part by, Summary judgment granted by, Motion denied by, As moot Living Color Enters. v. New Era Aquaculture, LTD., 2016 U.S. Dist. LEXIS 123130 (S.D. Fla., Sept. 9, 2016)

CORE TERMS

business relationship, trade secret, allegations, motion to dismiss, unfair competition, terminated, tortious interference, breach of fiduciary duty, trademark infringement, misappropriation, customers, complaint alleges, Non-Compete, fiduciary duty, trademark, infringement, rights, misappropriation of trade secrets, relinquished, email, individual liability, common law, confidential, participated, contends, argues, divest, amend, fails