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Cameron Davis
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1 -t'l ".. I" :-.'t STATES DI STRICT COURT UNITE SOUTHERN DISTRICT Of NEW VORi( _..._ AMERCCAN DIAGNOSTICA OF.oNl ' EC ICUT INC. -against- we. and CENTERCHEM GRADIPORE: LHlITED. Ph ilt 1 H DeEenda!lL.. - -_ _ x APPEAJUJCES : CHIll D.J. AROC KS IiAW! HAFFNER. DELAHUNTY Attoneys fo Plaintiff By G.T. Delahunty Esq. A t ed L. Haffne J.. Esq. Haold Haidt!::sq. 99 Pak Avenue New Yok New Yok ROSBII DAINOW & JACOBS L.L. P. Attone ys fo Defendants By : James David Jacobs Esq. Eugene D. Beman Esq. 489 Fifth Avenue New Yok. New Yok ORDER AMERICAN DlAGNOSTICA 94 Civ. '1041 We) Plaintiff Ameican Diagnostica of Connecticut Inc. v Co eagument of my Memoandum Decision dated Pebuay in which I ganted defe:'\dante' motion to stay this actio:'\ pend ing abitation. Plaintiff's notion is denied fo thep. easons. Fist this d1spete aise6 out of o elates to" the distibution ageement dated June (the "Ageement" ) between pla1ntiff and Cadipoe and thus is subject to the Ageement's abitation clause. The pinciple disp t j betw>!e!:he paties ls whethet" paagaph IS of the "geement pecludes plintif fom puuin9 lh tademak claims asseted in tt.ic action. Because this dispule equies an intepetation of the Agceement it necessaily aises out of o elates to the Ageement. Thus. the abitatio. c lau6 applies to this act ion. Second. plaint if' agument that I should not hav stayed the action with espect to Centechem is also ejecten. laintife'g concen appeas to be tha Centechem would not e bound by an Austalian abite's decision. Thee is no basi fo this concen. Centeche has epesented to the Cout that if p!aintiff pevails at the abitation it will be bound by slich a uling. If Gadipoc pevails at the abitation then :hee is no need fo Centechem to be -bound - by that uli.g. as it t oo would have won. Thid thee is no need to lift the atay to allow plaintiff Lo move fo a pdiminay injunction. In a lette dated Apil Gadipoe infomed the Cout that it would agee to povide the Austalian abite with the po'ne to ode inteim elief such as an injunction. Thus plaintiff can obtain any pelimtnay elief it seeks though the abitation pocess. Mo@ove. as discussed above. Cntechem's epesentation tha.t it would be bound to the abite's decision applies to any injunctive elief that y be lposed. the abite odes Gadipoe t o stop sending i t s poduct to ThUS if Centechem Cent ee hem would also be pohibited fom distibuting '\. 2 :bo lj :blj :::!<! O:b :::! ljo n "ti... o lj ""i Page 1 of 6 1<) '"" ;>-> i:. ' -

2 t'l t-:> :< c CD g. > ::. I that poduct in the Uni ted States. lenif!d. Fo these easons plaintiff's mot ion fo eagult'.e.t. ':'5 SO ORDERED. /"'\ ' n Oa:ed: Ne\l Yok. e... YOI k Apil DENNY CNIII.ted Slates Oist.ict Judge ) UNITED STATES DISTRICT COURt SOU;HERN DISTRICT O. N8W YORK AMERICIIlI OIAGtlOSTICA OF CONNECTICUT I NC. against- C lf.r C HEM INC. and GRAOTPORE LIM ITE D Plaintiff DeendanL s..... " x APPEJJI.A}IC!SI CHI n D.J. BROOKS IIJ.!!>T HAFnll :R " DELA.HUNTY Attoneys fo P:ain:iff By: G.T. Delahunty.q. Alted L.!laf f :e. J!"...sq. Haold Ualdt. sq. 99 Pa k Avenue New Yok New Yok IOn 16 ROSEN DAINOW JACOBS. L. L. P. Attoneys fo De:endants By: James 'avid Jacobs Esq. Eugene O. Beman Esq. 489 Fifth Avenue New Yok New Yok I!EMORA!!Dt!H 0 [ ei S lqj! 94 eiv (DCI In this tademak action defendants Cent echen I nc. and G adlpoe Llno.i tea have moved to stay this action and compe l abitation. Defem)allLs ely on a clause i n a distibution ageement dated June (tl lt! "Ageement") povi d i ng t hat disputes "aising out of 0[" ["elated to the Ageement would be esolved though abitation. Plaillliff Ameican Diagnostic4 of Connecticut Inc. agues that none 3{ its claims and only two of d e endan t' ten coll neclahs ais: out of o lat e t o the Lip._f\( C". '-# 1 " ) "."\.." " I - Iff "J... t!vi f lnt th t ;j :bolj ::j O ::j ljo. O- lj -i Page 2 of 6

3 t'l W '"' -< 2 C> ii '" 2 " z " > < p J! ths dlspute does indeed aise out of o elate to the Ageeent. de fendants' motion is ganted. BACKGROUND Gadipoe liml:ed ("Gadipoe"l Ls an Austalian company that manufacues and distibutes diagnostic chemical eagent poducts. Cenechem!nc. t"centeche J is Gadipoe's cuent distdbuto of two such podl:cts "LA-Sceen- and LI\- Confim. These eagcnta le used to detee-mine whethe Lupu anticoagulants ae pesent in human body fluids. 1n 1990 Gadipoe contucted plaintiff about d:'stibu:ing a pod'...lct ca:ted "Lupo Tc9t - a pecuso to LI\- Sceen.- Atle some discussions. Gadipoe and plaintiff enteed into the Ageement. wheeby pl aintiff became Gadipoe'o non exclusive distibuto of Lupo Test. Unde the Ageement plaintiff: was esponsi:le fo all maketing and advetisi.g of t.e poduct. plaintiff chose OVVtest. " plaintiff's tadel1lak. Thus the poduct was sold unde a name that Also the poduct label i ncluded Hevetheless the Ageement limited plaintiff's ights to use and pofit fom the poduct's name. Paagaph 15(a) of the Ageement is paticulaly elevant: (T1he Distibuto (plaintiffj acknoledges and ageed that it shall have no ight whatsoeve to claim coata damages eiftbusemenc o compensation (om Gadipoe in espect of publicity wok advetising o any goodwill ceated fo the said poducts in he teitoy upon o by vitue of o as a esult of the expiation o temination of this Ageement ) Ageement at 1 15(a). In addition the Ageement cootalned an abltation clause poviding that -any contovecy. claim o dispute aiing out of o elated to this Ageement- shall be efeed to abitation in Sydney Austalia. Sometime afte the paties enteed the Agee men t Gadipoe began using pldint:!( to distibute anothe poduc MOvvconfit!\" w:'i.h was to be used in coni unction with DVVtest. lthou9h the paties coesponded egulaly egading plaintif's distibution of OVVconfim the Ageement was not specifical ly modified to efeence th19 new poduct. Febuay 199). Gadipoe's last shipment to pla i ntiff occued in Soeetime afte Gadipoe stopped supp:ying plaintiff. plaintiff began manciactuing and distibuti.g its o\o'n chemical eagents unde the names OVVtest and OVVconfim. Meanhile Oadipoe enteed into an aangement with Centechen wheeby Centechem was to distibute Cadipoe's chemical eagents unde the names LA Sceen and LA Confim. theeafte plaintiff bught Soon this action alleging tademak and tade dess Inflngeent. fendants counteclaimed alleginq tademak infingement and beach of contact. move to stay this action and compe l abitation. ( \ - ) - Defendants now b i ::o ::! O ::! ::0 0 n "ti... o ::0 -t Page 3 of 6 /'

t'l 01> 3: c..l '> ouqlj The Fedeal A bitat on Act (FAA " l e!lects a stong fedeal policy Eavoi.g abitation as a means o( altenative dispute esolution. 9 U. S.c. L-16. 201-207 301-)01 ( Supp.

4 t'l 01> 3: c..l '> ouqlj The Fedeal A bitat on Act (FAA " l e!lects a stong fedeal policy Eavoi.g abitation as a means o( altenative dispute esolution. 9 U. S.c. L )01 ( Supp. III 1991); Pogessive Cas. I ns. Co. v CA Reaseguatl2.n Nacionat de Venezuela 991 F. 2d (7.d CiT. 199J); Ge.MaG.Q loco v. T. Kakiuchi &. Co. 815?2d (2d ct ). A co\:t must stay poceedings and odel- the paties to abitate thei dispute. if it deteminec t ha t the pa t ies have ageed in witinq to abitate an igsue o issues. 9 U.S.C. 2 McHahan Sec. Co v. Foum Capital aket6 I. P. 3S. 3d f2d Ci. 1994) ; Pogessive Cas. 1:1.8. Co. 991 F. 2d at 45. In detetining whetne te FAA mandates abitaticn of a dispute a cout nust coi:lf.'lete fou tasks; fist it must detemine whethe the pat ies ageed to abitate; second it must detemine the scope o[ the abitation ageement; thid it must conside if fedeal statutoy claims ae at issue whethe Congess intended those :laims to be nonijbitablei and f ou I t h it must detemine whethe to stay te balance of the poceedings pending abitation if some but not all of the clals action ae abit able. in the Pogessive Cas Co 991 F.2d at 45; CeneBeo Inc" 815 F.2d at In this ac o n the fist and thid steps ae unnecessayj t he paties neithe contest the existence of an abitation ageement n9ue that the fedeal statutoy \ - 1. ) claims. - the tademak claims ae nonah1.tab1.. m::;t on ly detemine the f:cope of the Ageement and if abitati on of on ly some claimf: is eqied Thus. whethe to Slay the action as to the nonabitblc c la ims pendlg abitation. 1. The Scope of the Ag eement '- Bcause fedeal policy stongly favos abitation of disputes. abitatio ageements snould bo constued as boa.dly as possible. with any doubts being eso!ved in (avo o abit ation. Noses H. CO:c Me moial Hasp. V Mecuy Const U.S. I i19b)); MCdhan Sec. Co. 35 F. ld at ea. " ' (AJ b::ation should be odeed unless i t may be said.. dth pos itive assuance that the abi tation clause is n o of an intepetation that coves the asseted dispute. sus ce tible Sec. Co. )5 F. 3d at 89 (quo t ing S.A Mioeacao Qa Tiodade- McMa. n:m Samiei v. Utah Int'l I"c. 745 F.2d d Cl. 1984). This is paticulaly tee whee te abitation c l ause at issue is a boad c l auge that eces to all disputes aising out of an ageement. Hc:>onnell Dqugla s Fin. Cop. v. Pennsylvania POI Light Co. BSB F. 2d (2d Ci. 1988). Hee the cental dispute is whethe plaintiff's claims concening DWconEim ae within the scope of the hgeement. a.t fist glance i t appeas without question that this dispute is within the scope of the Ageement. The abitation clause at issue is a boad c l ause I"t:!feing to all disputes "aising out of o elated to" the Ageement. Moeove I the Ageement govened :b :x: ij :b:x: :::!<: O:b <::::! :0 0 n "ti O :0 "'i Page 4 of 6

5 t'l U1.. c C '" ::' '" < f2.: aalpoe ' s antlcoagu tanc s. Th. dispute plainly. W ed ou' o? that elationship. Neveth el es. subject to a bitatiun fo lwo easons: plainti ff 4f9uea that this dispute is not fist the Ageement only elated to DVVtest and thus any issue concening DVVconfim does not aise out of o elate co the 1\geel1lentj second because the Ageement contains the tem goowill but doeo not mentio. tademak ights plain.uf's tademak clai ms and def endants' tademak counteclai.s do ot aise out of o elate to the hgeement. Because I l1\ust onstn..:e t he abitation clause c..[ the Ageemen t lias boadly as possible howeve these aguments ae ejected. As fo pl aintlff's fist agument it i s tue that its claims as well as defendants' counte cla.ims involve DVVconfim.!t is also tue that D'Nconfi l:l... as not ini tially coveed by the Ageement. Subsequent coeopondence bet... een the patie::s howeve indicates that the Ageement may have govened plaintiff's distibution of DWconfim. dated May 6 and 3 'Specifical:'y lettes fom Richad Hat plaintiff'. pesident to John ManuSu Gadipoe' s pesident eveal tht plalothf be lieved that t1et set foth it. egading DVVconfi m.) "'" Plaintiff diects me to a lette dated Mach in suppot of its agument that the Ageement does not apply to nvvcon fim.? hat l ette. howeve appeas to e fe simply to / a. t CtiLe. j ' ul4 ul'j;ll#o//> tfiduk6.nt 0/ U ) f inge men t do not involve4llconfim alone. Instead the allegations involve hath DVVconfi m and DWtcst. Ageement petains tu disputes concening DVVteat. boad constucton Plai:11y the Giving a to t he abitation ageement I must find that a dispute involving OVVtest and DWconfim - - a elated poduct that is used in co!1junction with DWtest. is elated to th Agee ment_ also aises out of o Plaintiff's second agument that this d i sp\! te does!lot aise out of o elate to the Ageement because it i s a tadema k acticn is equally unavai l ing. Plaintif! bases this dg:jment on lsla) o f the Ag::-ee men t. Accoding to plai ntiff ls(a) petains t o advetising Maeting. and othe costs. Thus plaintiff agues t.hat the?aagaph simpl y povides that i:.:ould not chage Cadipoe fo any cos:s it incued fo advetising maketing o othewise establishing the poduct's goodwill should the Ageement be tel'.inated pematuely. Convesel y dcfenda.ts intepe t 15(al as pohibiting plaintiff fom b:-inging damage suits to ecove fo any 90odw 1l ceated though mnketing Gadipoe's poducts. Thus elying on the tem goodwill de fendants ague that this section fobids plaintiff f om binging illfingement claims because a tadema k is insepaable fom the goodwill that i t symbolizes. 15 and minimum puchase ageements and nat to the oveall picig distibution ageement. 10 lit - 1-1#1" t l tfta-ej'!j tl-:j' 0 dt/att!l- )) :n :ti YJ :::1;::: O:b <::::1 :no 0"'" :n """i Page 5 of 6

('l Ol ;:: 5. " :-!! u.s.c. 1060 119881. In detcmin:ng whethe the tadema k aspects of ts action ae abitable I must favo abitation unless I can state with "positive assuj.

6 ('l Ol ;:: 5. " :-!! u.s.c In detcmin:ng whethe the tadema k aspects of ts action ae abitable I must favo abitation unless I can state with "positive assuj.ce that the Ageement is no SU9ceptible of an intepetiltion that coves thig dispute. this standad I must find that the tademak claims ae Unde abitable. Defendan:s aise a me to ious agument that 1 is of the Ageement pohibits he bought against tem. vey actio:1 that plaintiff has :1:u5 the dispute plainly is elated to the Ageement. The mee dcl that plaintiff contest9 defenc.ants' in:epetation of that pdfagaph. even if it is ultinate ly oved 1" i91".t. does no change :he lialue o the dispute. l Acc o di:"!qy.! ho;d that pla lnti! t'.ademak cltims and defendi\nts' tademak counteclaillls atf contained in the Ageement. II. Nopabitable Claims sllbject to the abitation clause Because 1 find that :he tademak claims ae abitable and because it is udispued that defendants' contact claiu\s ae abitable the only emaining issue i9 whethe I should stny the action as to the claids aga i nst Centechem. Centechem has Stictly speaking the events undelying plaintiff 'g compl aint an inftinge mnt on its egioteed tademak occued afte the temination of the Ageement. Nevetheless this dispute plainly "involves facts and occuences that aose be:oe expiation" of t he Ageement. Litton Fin. Pinting Div. v. National Labo Relations ad. 501 u.s (l991) 'i':"us it lr of no consequence that this dispute aises afte the Ag ement has teminated. B.stated that it would stipulate to be bound by the abitation. Thus all issues petaining to Centeche would be esotved dt the abitation as if i: wee paty to the Ageement Accodingly. staying this act jon with espect to the claims against Centechem is the 9 t easonable couse of action. CONCLUSIOII Fo the foegoing easons defendants' mot ion to stay th: s action and ompe l abitation is ganted. lade abitation of all claims ljet"neen plaintiff and Gadipoe. The litigation of plaintiff's cjais endin9 against Centechen is stayed abitation. The action is placed on the suspense docket pending the outconp. of [e Dated: SO ORC REO. new Yok. 'le'" Yok. Febuay IS abitation.. 9. " J"dge :b ::X) :E :-'i ::i<: 0)::; <:::i ::X) 0 01"' ::X) -t Page 6 of 6

Raycom Program Ventures, Inc. v Reliable Fast Cash, LLC 2018 NY Slip Op 32945(U) November 20, 2018 Supreme Court, Kings County Docket Number:

Raycom Program Ventures, Inc. v Reliable Fast Cash, LLC 2018 NY Slip Op 32945(U) November 20, 2018 Supreme Court, Kings County Docket Number: Raycom Pogam Ventues, nc. v Reliable Fast Cash, LLC 2018 NY Slip Op 32945(U) Novembe 20, 2018 Supeme Cout, Kings County Docket Numbe: 501246/18 Judge: Leon Ruchelsman Cases posted with a "30000" identifie,