Opinion

Brady Bunte v. M.C.I. Foods, Inc.

Court
Trademark Trial and Appeal Board
Filed
Feb 19, 2008
Status
Published
Author
By the Board
On the bench
Walters, Rogers, Mermelstein[Opinion "By the Board" (Adlin)]
Cited by
0 cases

The opinion

UNITED STATES PATENT AND TRADEMARK OFFICE

Trademark Trial and Appeal Board

P.O. Box 1451

Alexandria, VA 22313-1451

This Decision is a

Precedent of the TTAB

Mailed: February 19, 2008

Cancellation No. 92045959

M.C.I. Foods, Inc.

v.

Brady Bunte

__________________________

Cancellation No. 92046056

Brady Bunte

v.

M.C.I. Foods, Inc.

Before Walters, Rogers and Mermelstein, Administrative

Trademark Judges

By the Board:

These cases now come up for consideration of two

virtually identical motions for sanctions, each filed

October 19, 2007. In each motion, Brady Bunte -- respondent

in Cancellation No. 92045959 and petitioner in Cancellation

No. 92046056 -- seeks judgment in his favor as a sanction

for M.C.I. Foods, Inc.’s (“M.C.I.”) failure to produce

documents as required by previous orders of the Board,

issued separately in each case. The motions are fully

briefed and ready for decision.

Cancellation Nos. 92045959 and 92046056

Background

Mr. Bunte owns a registration of the mark CABO CHIPS

for “processed snack foods formed from corn, namely,

chips.”1 In Cancellation No. 92045959, M.C.I. seeks to

cancel Bunte’s registration based on an alleged likelihood

of confusion with M.C.I.’s registered marks CABO PRIMO2, LOS

CABOS3 and CABO CLASSICS4, all of which are used for Mexican

food products. In his answer to M.C.I.’s petition for

cancellation, filed July 28, 2006, Bunte denies the salient

allegations in the petition for cancellation.

On July 19, 2006, prior to filing his answer in

Cancellation No. 92045959, Bunte initiated Cancellation No.

92046056. In it, Bunte seeks to cancel M.C.I.’s

1

Registration No. 3086128, issued April 25, 2006, with a

claimed date of first use in commerce of December 2, 2003.

2

Registration No. 2674112, issued January 14, 2003, based on

a claimed date of first use in commerce of April 19, 2001, for:

“Mexican Style Food Products, namely, chimichangas, tacos,

breakfast tacos, burritos, breakfast burritos, enchiladas,

tostados, tortillas, corn tortillas, flour tortillas, tamales,

taquitos, chalupas, taco boats, and flautas; Gorditas, namely

thick Mexican bread containing cooked meats and/or poultry,

vegetables, and seasoning; Appetizers, namely miniature hand held

burritos, tacos, taquitos, quesadillas, tamales, and flautas;

rice, cookies, pastries, coffees, candy, Snacks, namely salsa,

tortilla chips, Mexican cookies, and Mexican candies; Bunuelos,

namely thin tortilla pieces, deep fried with cinnamon and sugar;

seasonings, cactus-flavored seasoning, spices, salsas, sauces,

and mole sauce.”

3

Registration No. 2988402, issued August 30, 2005, based on a

claimed date of first use in commerce of April 6, 1992, for:

“burritos, enchiladas, tacos, taquitos, soft tacos, sold in bulk

to food distributors who resell to convenience stores, schools,

fast food restaurants and the food service industry.”

4

Registration No. 3088995, issued May 9, 2006, based on a

claimed date of first use in commerce of September 1997 for:

“burritos, enchiladas, tacos, and taquitos.”

2

Cancellation Nos. 92045959 and 92046056

Registration No. 2674112 for CABO PRIMO, alleging that it

was procured by fraud. M.C.I. denies the salient

allegations in this petition for cancellation.

Consolidation

These proceedings involve identical parties, an

identical registration and related issues. When cases

involving common questions of law or fact are pending before

the Board, the Board may order consolidation of the cases.

See Fed. R. Civ. P. 42(a); see also, Regatta Sport Ltd. v.

Telux-Pioneer Inc., 20 USPQ2d 1154 (TTAB 1991). In view

thereof, Cancellation Nos. 92045959 and 92046056 are hereby

consolidated.

The consolidated cases may be tried and presented on

the same record and briefs. See Helene Curtis Indus. Inc.

v. Suave Shoe Corp., 13 USPQ2d 1618 (TTAB 1989); Hilson

Research Inc. v. Soc’y for Human Res. Mgmt., 27 USPQ2d 1423

(TTAB 1993).

The Board file will be maintained in Cancellation No.

92045959 as the “parent” case. From this point on only a

single copy of any paper or motion should be filed herein;

but that copy should bear both proceeding numbers in its

caption. The consolidated cases shall be scheduled in the

same manner as a single case with a counterclaim by Bunte.

Despite being consolidated, each proceeding retains its

separate character. The decision on the consolidated cases

3

Cancellation Nos. 92045959 and 92046056

shall take into account any differences in the issues raised

by the respective pleadings; a copy of the decision shall be

placed in each proceeding file.

Motions for Sanctions

In each of these now-consolidated proceedings, Bunte

filed a motion to compel for M.C.I.’s failure to respond in

any manner to Bunte’s interrogatories and document requests.

In each proceeding, Bunte’s motion was granted as

uncontested, and M.C.I. was “ordered to serve no later than

THIRTY DAYS from the mailing date of this order its

responses, without objection, to [Bunte’s] first set of

interrogatories and first request for production of

documents.” The Board’s order in Cancellation No. 92045959

issued on May 18, 2007, and the Board’s order in

Cancellation No. 92046056 issued on May 31, 2007.

In his motion for sanctions, Bunte indicates that on

May 14, 2007, after the filing of Bunte’s motion to compel

but before issuance of the Board’s first order granting

Bunte’s motion to compel, M.C.I. served untimely responses

and objections to Bunte’s discovery requests served in

Cancellation No. 92045959. In its response to certain

document requests, M.C.I. indicated that “[r]esponsive

documents will be made available to [Bunte] upon entry of a

suitable protective order,” and in response to others,

M.C.I. indicated that “[r]esponsive documents will be made

4

Cancellation Nos. 92045959 and 92046056

available” to Bunte. However, documents were not made

available to Bunte, even after issuance of the Board’s

orders granting Bunte’s motions to compel, nor did M.C.I.

provide responses to Bunte’s interrogatories or document

requests without objection, even after issuance of the

Board’s orders.

We note at this point: (1) that a mere promise to

produce unspecified documents at some unspecified later time

is an insufficient response to a Board order compelling

production; and (2) by rule, on August 31, 2007, the Board’s

standard protective order automatically went into effect,

and it now governs this proceeding. See, Trademark Rule

2.116(g); “Miscellaneous Changes to Trademark Trial and

Appeal Board Rules,” 72 Fed. Reg. 42,242 (Aug. 1, 2007).5

As to the former point, Federal Rule 34(b) and the comments

thereto clearly contemplate various ways in which a

requesting party can seek production. Thus, a responding

party can arrange for production, and the parties can

resolve disputes about production prior to the filing of a

motion to compel. However, after the motion to compel has

been granted, production must be made in the manner

requested by the inquiring party, unless otherwise directed

5

Further information on the Federal Register notice and the

Board’s standard protective order made applicable to all Board

proceedings by that notice of rulemaking is available on the

Board’s webpage:

http://www.uspto.gov/web/offices/dcom/ttab/index.html.

5

Cancellation Nos. 92045959 and 92046056

by the Board in the order granting the motion to compel. In

the case at hand, Bunte had requested that production be

made at his counsel’s offices. Thus, that is the place

where M.C.I. was obligated to produce the documents when the

motions to compel were granted.

On August 1, and September 11, 2007, Bunte contacted

M.C.I. to ask when M.C.I. would provide responses without

objection. On September 27, 2007, M.C.I. responded by e-

mail as follows:

My client is completing the assembly of documents

in response to your discovery requests. Also, my

client is executing the protective order that will

govern some of the documents produced in response

to your discovery requests. We hope to have the

documents available in the coming days.

M.C.I. has still not produced documents or served responses

without objection, however, and Bunte contends that

therefore “sanctions in the form of a default judgment

should be entered against M.C.I.”6

In opposing Bunte’s motion, M.C.I. indicates that it

“has provided full and complete responses to Bunte’s

Requests for Admissions and Interrogatories. These

responses were provided prior to the Board’s order granting

Bunte’s Motion to Compel.” M.C.I. also claims that “some of

6

Because M.C.I. did not timely serve its discovery responses,

its objections on the merits have been waived. Fed. R. Civ. P.

33(b)(4); Envirotech Corp. v. Compagnie Des Lampes, 219 USPQ 448,

449 (TTAB 1979).

6

Cancellation Nos. 92045959 and 92046056

the document requests required an exhausting (sic) and

voluminous review of materials in M.C.I.’s possession,

including materials that date back 50 years.” Furthermore,

“M.C.I. advised Bunte that all of the document responses

were available to be produced upon Bunte’s signing of a

protective order (which protective order was drafted by

Bunte’s counsel).”

M.C.I. argues that sanctions are not “needed at all,”

because M.C.I. notified Bunte on October 19, 2007, the day

Bunte filed its motion, that documents were available.

M.C.I. also claims that it has not engaged in “willful

evasion” of the Board’s orders.

In his reply brief, Bunte argues that M.C.I. has yet to

produce documents, and that “[p]etitioner’s response to

interrogatories included numerous untimely objections.”

According to Bunte, because the discovery period is now

closed, this places him at an unfair disadvantage.

Furthermore, “there is no declaration or other basis in the

record submitted by M.C.I. to demonstrate that M.C.I. has

diligently been attempting to collect responsive discovery

materials ….”

Decision

“If a party fails to comply with an order of the

[Board] relating to discovery … the Board may make any

appropriate order, including any of the orders provided in

7

Cancellation Nos. 92045959 and 92046056

Rule 37(b)(2) of the Federal Rules of Civil Procedure,

except that the Board will not hold any person in contempt

or award expenses to any party.” Trademark Rule

2.120(g)(1). In this case, it is clear that M.C.I. failed

to comply with the Board’s orders granting Bunte’s motions

to compel.

Indeed, even after it was ordered to respond to Bunte’s

discovery requests without objection on the merits, M.C.I.

did not do so. In fact, M.C.I. violated the Board’s orders

by effectively maintaining (i.e. not withdrawing) its

objections on the merits to Interrogatory No. 17 and

Document Request Nos. 4, 7, 11-13, 17-22 and 24 in

Cancellation No. 92045959, and Document Request Nos. 1, 7,

11-13, 17-22 and 24 in Cancellation No. 92046056.7

M.C.I.’s other objections (those not based on the

merits) are also inappropriate. Specifically, M.C.I.

7

The Board has previously distinguished objections on the

merits of a discovery request from other types of objections:

Objections going to the merits of a discovery request

include those which challenge the request as overly

broad, unduly vague and ambiguous, burdensome and

oppressive, as seeking non-discoverable information on

expert witnesses, or as not calculated to lead to the

discovery of admissible evidence. In contrast, claims

that information sought by a discovery request is

trade secret, business-sensitive or otherwise

confidential, is subject to attorney-client or a like

privilege, or comprises attorney work product, goes

not to the merits of the request but to a

characteristic or attribute of the responsive

information.

No Fear v. Rule, 54 USPQ2d 1551, 1554 (TTAB 2000).

8

Cancellation Nos. 92045959 and 92046056

objected to a large number of Bunte’s discovery requests

asserting that the information requested is protected by the

attorney-client privilege or attorney work product doctrine.

However, M.C.I. failed to produce the required privilege

log. Fed. R. Civ. P. 26(b)(5)(A)(ii); No Fear, 54 USPQ2d at

1556 (such objections require “a particularized explanation

of the privilege relied on, and a description of the

documents which, without revealing the privileged

information, is sufficient to allow the inquiring party to

assess the applicability of the privilege”).

Furthermore, and in violation of the Board’s orders,

M.C.I. did not make responsive documents available to Bunte

until over three months after the Board issued its orders.

The Board required M.C.I. to do so within 30 days. While it

may have been acceptable to merely make identified documents

available to Bunte when M.C.I. originally responded to

Bunte’s document requests, it was not acceptable for M.C.I.

to offer production in this manner once the Board ordered

M.C.I. to respond without objection. Indeed, Bunte

requested that documents be produced in the office of his

counsel, and M.C.I.’s offer to merely make the requested

documents available at an unspecified time and place

effectively constituted an objection on the merits, which

was prohibited by the Board’s orders. No Fear, 54 USPQ2d at

9

Cancellation Nos. 92045959 and 92046056

1554 (TTAB 2000) (“it was improper for applicant, after

being ordered to provide discovery responses without

objection, to have raised an objection regarding place of

production.”).

Because M.C.I. failed to comply with the Board’s

orders, sanctions are appropriate. Bunte requests the

sanction of judgment, but under the circumstances presented

here we believe that at this point this ultimate sanction

would go too far. See, Elec. Indus. Ass’n v. Potega, 50

USPQ2d 1775, 1777 (TTAB 1999).

Lesser sanctions are appropriate, however, and

accordingly, Bunte’s motions for sanctions are hereby

GRANTED, as follows:

(1) Within TWENTY DAYS of the mailing date of this

order, M.C.I. shall: (a) prepare and serve written

responses to Bunte’s discovery requests, without

objection on the merits; (b) copy all responsive

documents at its own expense and deliver them to Bunte;

and (c) serve a privilege log.

(2) The Board will accept any documents produced by

M.C.I., if filed during trial by Bunte, as authentic

and admissible.

(3) M.C.I. is prohibited from relying at trial on any

documents requested by Bunte during discovery but not

produced by M.C.I. within the time set for complying

with the Board orders granting Bunte’s motions to

compel.

As a result of this prohibition, M.C.I. may not

introduce documents requested by Bunte during discovery as

an exhibit to a testimonial deposition or by notice of

reliance. By contrast, Bunte may rely on any and all

10

Cancellation Nos. 92045959 and 92046056

documents produced by M.C.I. M.C.I. is not, however,

precluded from relying on documents which were reasonably

not part of a document production request by Bunte during

discovery.8

Proceedings are resumed, and the discovery and trial

dates are reset as follows:

THE PERIOD FOR DISCOVERY TO CLOSE: CLOSED

30-day testimony period for

plaintiff in Cancellation No.

92045959 (M.C.I.) to close: May 14, 2008

30-day testimony period for

defendant in Cancellation No.

92045959 (Bunte) and plaintiff in

the counterclaim to close: July 13, 2008

30-day testimony period for

defendant in the counterclaim

and rebuttal testimony for plaintiff

in the cancellation to close: September 11, 2008

15-day rebuttal testimony period for

plaintiff in the counterclaim to

close: October 26, 2008

Briefs shall be due as follows:

Brief for plaintiff in the

cancellation shall be due: December 25, 2008

Brief for defendant in the

cancellation and plaintiff in

the counterclaim shall be due: January 24, 2009

Brief for defendant in the

counterclaim and reply brief,

if any, for plaintiff in the

cancellation shall be due: February 23, 2009

8

Of course, both parties’ registrations are of record and the

parties may rely on them at trial. Trademark Rule 2.122(b)(1).

11

Cancellation Nos. 92045959 and 92046056

Reply brief, if any, for

plaintiff in the counterclaim

shall be due: March 10, 2009

***

12

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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