The plaintiffs sought an injunction preventing the defendants from using their marks, system trade dress. The plaintiffs also sought damages for past due royalties and lost profits.
A default judgment was entered in favor of the plaintiffs in the amount of $87,919. FL Consulting and L'Esperance were held jointly and severally liable for the judgment. Judge Stanley R. Chesler issued permanent injunction in favor of Athlete's Foot.
On March 3, 2006, Plaintiffs Athlete's Foot Marketing Associates and Athlete's Foot Brands, LLC, (collectively Athlete's Foot) of Pennsylvania, terminated an operating agreement with FL Consulting Fritz L'Esperance when the parties allegedly used their trademarks without paying royalties due.
The plaintiffs sued West Union's FL Consulting and L'Esperance, of Holmdel, for breach of contract, violation of a non-competition covenant. They alleged that the defendants infringed upon their trademarksand service marks, engaged in unfair competition and misappropriated trade secrets and other confidential information.
Allegedly, on May 14, 2004, Athlete's Foot Marketing and Athlete's Foot Brands entered into a franchise agreement with FL Consulting Inc. Under the agreement, FL Consulting agreed to pay an initial franchise plus monthly royalties equal to 5% of net sales. L'Esperance signed an agreement to act as a guarantor FL Consulting. The defendants opened an athletic footwear retail store in West Union, using the plaintiffs'
mark, system and trade dress.
In 1985, Athlete's Foot adopted the distinctive store appearance that it continues to use today. Footwear displayed on wall shelves called grids, seats are cushioned, and the floors and signs are standardized represent a uniform athletic theme.
The plaintiffs claimed among other things that the defendants failed to pay royalty fees and failed submit a record of its net sales for the month of December 2005. On Jan. 25, 2006, the plaintiffs issued letter notifying the defendants of their default on the agreement. In March of that year, the agreement terminated.
United States District Court, D. New Jersey
Athlete's Foot Marketing Associates LLC and Athlete's Foot Brands, LLC v. FL
Consulting Inc. and Fritz L'Esperance
No. 2:06-cv-03035
DATE OF VERDICT/SETTLEMENT: September 10, 2007
