Pryor Cashman Succeeds in Enforcing Stipulation of Settlement and Obtains Award of Attorney’s Fees; Judge Sanctions Opposing Counsel For “Absurd' Argument” About Jurisdiction
On January 18, 2011, U.S. District Judge Joanna Seybert granted the motion made by Pryor Cashman on behalf of its clients, Carson Optical and Leading Extreme Industries, to enforce a Stipulation of Settlement entered into in 2004 in an intellectual property litigation which they had instituted against defendant Hawk Importers, Inc. and its principals.
In Cameron International Trading Company v. Hawk Importers, 03-cv-02496, pending in the U.S. District Court for the Eastern District of N.Y., the underlying action involved claims of copyright infringement, trade dress infringement, trademark infringement, false designation of origin, unfair competition and deceptive business practices. The settlement agreement required defendants to destroy and to cease importing, distributing and selling their inventory of certain packaging and products.
Rather than respond to the substance of plaintiffs’ application, defendants filed a motion to dismiss on the grounds that the Court lacked jurisdiction to hear allegations that a 2004 settlement had been violated.
On March 24, 2010, Magistrate Judge William D. Wall issued a Report & Recommendation recommending that the Court grant plaintiffs’ application to enforce the settlement agreement and deny defendants’ motion to dismiss. After defendants filed their objections to the Magistrate’s Report, the Court denied defendants’ motion to dismiss, awarded Pryor Cashman’s client their attorney’s fees, and also sanctioned defendants’ counsel for making a frivolous motion, finding that their jurisdiction arguments were “absurd” and demonstrated “frivolity and illogic.”
Judge Seybert sanctioned the two attorneys $4,900, finding: “Considering Defendants' conduct in its entirety, the Court finds that it reflects a manifest and calculated disrespect for the Court and its authority (i.e., not appearing for conferences, incredulously feigning ignorance about what happens at a Show Cause hearing), going beyond even Defendants’ nonsensical argument that the Settlement Agreement’s jurisdictional clauses lack any continuing force.”
Plaintiffs Carson Optical and Leading Extreme Industries were represented by Pryor Cashman Partner Rob deBrauwere.
The case was featured on the front page of The New York Law Journal on January 21, 2011. To read the article, please click here.
