Graham v. Take-Two Interactive Software, Inc.

Background

Shawn Graham, proceeding without a lawyer, sued Take-Two Interactive Software, Inc., 2K Sports, Inc., and 2K Games, Inc. He asserted claims for trademark infringement, unfair competition, and unjust enrichment. Graham alleged that he owned trademark registrations for “RWTW” and “ROLL WITH THE WINNER’S” and marketed products bearing those marks through an online blog and social-media platforms. He claimed that the defendants infringed his rights by creating and selling a video game that used “RWTW” in its cover art, content, and packaging.

The defendants filed a partial motion under Federal Rule of Civil Procedure 12(b)(6), which allows dismissal for failure to state a legally sufficient claim. The motion challenged only Graham’s unjust-enrichment claim.

Report and Recommendation

Magistrate Judge Stewart D. Aaron recommended granting the partial motion to dismiss and allowing Graham to amend his complaint. No party objected to the recommendation. The district court therefore reviewed it for clear error, meaning whether the court was firmly convinced that the magistrate judge had made a mistake, and found none.

Unjust-Enrichment Claim

Under New York law, an unjust-enrichment claim requires allegations that the defendant received a benefit, that the benefit came at the plaintiff’s expense, and that fairness requires the defendant to provide restitution. There must also be a relationship or connection between the parties that is not too remote.

The court concluded that Graham’s complaint alleged no relationship, communications, or dealings between him and the defendants. It also did not allege a specific and direct benefit that Graham had conferred on the defendants. The court therefore determined that dismissal of the unjust-enrichment claim was warranted. It also agreed that Graham should be given leave to amend because a liberal reading of his complaint suggested that he might be able to state a valid unjust-enrichment claim. A footnote stated that he may have 30 days from the order’s date to file an amended complaint.

Disposition

Judge Daniels adopted Magistrate Judge Aaron’s Report and Recommendation in full. The defendants’ partial motion to dismiss Graham’s unjust-enrichment claim was GRANTED. The order did not state that the dismissal was with or without prejudice, and it did not resolve Graham’s trademark-infringement or unfair-competition claims.