Aero Advanced Paint Tech., Inc. v. Int'l Aero Prods., LLC
Aero Advanced Paint Tech., Inc. v. Int'l Aero Prods., LLC
Opinion of the Court
*1069International Aero Products, LLC, International Aero Holdings, LLC, International Aero Engineering, LLC, International Aero Services, LLC,
For the following reasons, the Court GRANTS Defendants' motion and DENIES Plaintiff's motion as moot.
I. BACKGROUND
This matter arises from a trademark dispute between International Aero and Aero Advanced. On April 11, 2018, International Aero Products LLC filed a Complaint against Aero Advanced in the United States District Court for the Central District of California, alleging: (1) infringement of a federally registered trademark under
On April 26, 2018, Aero Advanced filed a Complaint in this Court against International Aero Products LLC and several of its affiliates.
On May 3, 2018, International Aero Products, LLC filed a First Amended Complaint in the California Action.
International Aero moved to dismiss, transfer, or stay this case pursuant to the *1070first-to-file rule or to dismiss this case for lack of personal jurisdiction. ECF No. 27. Aero Advanced then moved for leave to conduct limited jurisdictional discovery. ECF No. 29. Meanwhile, Aero Advanced moved to dismiss or transfer for lack of personal jurisdiction in the California Action. See Int'l Aero Prods. ,
II. ANALYSIS
"The first-to-file rule is a well-established doctrine that encourages comity among federal courts of equal rank." Zide Sport Shop of Ohio, Inc. v. Ed Tobergte Assocs., Inc. ,
In deciding whether the first-to-file rule applies, a court should look to three factors: (1) the chronology of the actions; (2) the similarity of the parties involved; and (3) the similarity of the issues at stake. See Plating Res., Inc. v. UTI Corp. ,
A. Chronology of the Actions
The Court must first consider which action was filed first. Here, the California Action was filed on April 11, 2018. See Int'l Aero Prods. ,
The Sixth Circuit has indicated that "[f]or purposes of first-to-file chronology, the date that an original complaint is filed controls." Zide Sport Shop of Ohio, Inc. ,
(1) the amendment relates to a claim or defense arising out of the conduct, transaction, or occurrence set out in the original complaint; (2) the party to be added has notice of the action within the period provided by Rule 4(m) such that it will not be prejudiced; and (3) the party knew or should have known the action would have been brought against it but *1071for a mistake concerning the party's identity.
P & G Co. v. Team Techs., Inc. , No. 1:12-cv-552,
Here, the Plaintiff in the California Action timely filed an amended complaint that merely corrected its place of incorporation. See Int'l Aero Prods. ,
B. Similarity of the Parties
The second factor that the Court must consider is the similarity of the parties. Under the first-to-file rule, the parties need not be identical but must be "substantially similar." AK Steel Corp. ,
The California Action is between International Aero Products, LLC and Aero Advanced. Here, Aero Advanced filed its Complaint against International Aero Products, LLC, and additional parties affiliated therewith. ECF No. 1. The only difference between the parties in the California Action and the instant action is the additional Defendants in this action. Those Defendants are all parties/entities affiliated with the plaintiff in the California Action. Therefore, the Court concludes that the parties in this case are substantially similar to the parties in the California Action.
C. Similarity of the Issues at Stake
The third factor the Court must consider is whether the issues in the two lawsuits are sufficiently similar to warrant application of the first-to-file rule. Again, the issues do not need to be identical but must be "substantially similar." AK Steel Corp. ,
In the California Action, International Aero Products, LLC brought federal trademark infringement claims against Aero Advanced under
Although this action raises additional federal and state law claims related to the alleged trademark infringement, the factual allegations and central theories of liability are the same in both actions. Both cases allege trademark infringements involving the parties' "AERO" and "AERO and Design" trademarks. When considering the *1072similarity of the issues at stake in the cases, the California Court reached the same conclusion, stating: "At the heart of both cases is a claim of trademark infringement. The ultimate issue is the right to use 'AERO' and 'AERO and Design' as trademarks and the subsequent damages resulting from the alleged infringement." See Int'l Aero Prods. ,
D. Equitable Considerations
Having found all three factors met, the Court concludes that the first-to-file rule applies. This Court has the "discretion to dispense with the first-to-file rule where equity so demands." AK Steel Corp. ,
Aero Advanced argues that the California action was filed in "a bad faith attempt to forum shop and harass Aero [Advanced]" and that "[t]he entire point of the California lawsuit was to get it filed immediately so that Aero [Advanced] would be caught off-guard and unable to file its valid Complaint in Ohio." Pl. Memo in Opp. 6, ECF No. 35. However, Aero Advanced does not cite any evidence that the California Action was filed in bad faith. Therefore, the Court concludes that there is presently no extraordinary circumstance such that the Court should decline to apply the first-to-file rule. Accordingly, the Court exercises its discretion under the first-to-file rule to transfer this case to the Central District of California, where the first filed case is currently pending.
Because the case is transferred pursuant to the first-to-file rule, it is unnecessary for the Court to address International Aero's motion to dismiss for lack of personal jurisdiction. See Plantronics v. Clarity, LLC , No. 1:02-cv-126,
III. CONCLUSION
For the foregoing reasons, the Court finds that the first-to-file rule applies and GRANTS Defendants' motion, ECF No. 27. Plaintiff's motion for leave to conduct limited jurisdictional discovery is DENIED as moot, ECF No. 29. The Clerk is DIRECTED to transfer the case to the United States District Court for the Central District of California and TERMINATE the case on this Court's docket.
IT IS SO ORDERED .
Plaintiff alleges in a footnote in its memorandum in opposition that International Aero Services, LLC ("IAS") has failed to appear in this case and is in default. Pl. Memo in Opp. 1 n.1, ECF No. 35. Defendants' reply indicates that IAS may have been inadvertently left off the list of Defendants in the motion to dismiss, but the motion was signed on behalf of "all Defendants." See Defs. Reply 5, ECF No. 36 (citing Def. Mot. 2, 13, ECF No. 27). Because Plaintiff has not moved for entry of default, and merely mentions it for the first time in a footnote in a response brief, the Court declines to consider Plaintiff's default allegation at this time.
Plaintiff also names John Does 1 - 5 as Defendants.
Defendant Jonathan Saltman is the part-owner and CEO of International Aero Products, LLC and declares that each of the Defendants in this action are affiliated. ECF No. 27-1.
International Aero Products, LLC filed the First Amended Complaint before Aero Advanced answered and within ninety days of filing the original Complaint.
Reference
- Full Case Name
- AERO ADVANCED PAINT TECHNOLOGY, INC. v. INTERNATIONAL AERO PRODUCTS, LLC
- Cited By
- 7 cases
- Status
- Published