Travel Leaders Group v. Corley

Background

Travel Leaders Group, LLC and Tzell Travel, LLC brought claims under Section 43(a) of the Lanham Act, a federal trademark law, and Texas common law. They alleged that Greg Corley and North Texas Travel Group LLC falsely advertised an affiliation with the plaintiffs, engaged in unfair competition, and misappropriated the plaintiffs’ name or likeness.

The defendants did not answer, appear, or file a motion. The court previously granted the plaintiffs’ motion for default judgment and referred the damages issue to Magistrate Judge James L. Cott for an inquest. Judge Cott recommended denying damages and entering an injunction against continued use of the plaintiffs’ name and likeness. No party objected to the report.

Court’s Analysis

The court reviewed the unobjected-to portions of the report for clear error and found none. It adopted the report in full.

The court agreed that the plaintiffs were not entitled to statutory damages under the Lanham Act because they had not alleged that the defendants used a counterfeit mark. The court also agreed that the plaintiffs were not entitled to actual damages because they offered no evidence of the defendants’ profits, their own lost profits, or the calculations needed to award damages.

The court agreed that injunctive relief was warranted. It stated that the plaintiffs had established success on the trademark-infringement claim through the defendants’ default, showed a strong likelihood of confusion and irreparable harm, and showed that the balance of hardships and public interest favored an injunction. The injunction bars the defendants from using the name “North Texas Travel Group,” any name resembling “Travel Leaders Group,” and false claims of affiliation with Tzell or any Travel Leaders Group affiliate.

The court also denied attorneys’ fees and costs under the Lanham Act. Although the plaintiffs showed that the infringement was willful, the court found that they had not shown that the case was “exceptional,” meaning that it stood out because of the strength of their legal position or the unreasonable way the case was litigated.

The opinion also states that the court had personal jurisdiction over the defendants based on allegations concerning internet advertising from Dallas, Texas, injury in New York, and the defendants’ claimed affiliation with a New York-based travel agency.

Disposition

Judge George B. Daniels adopted Magistrate Judge Cott’s report in its entirety. The plaintiffs were not awarded damages, attorneys’ fees, or costs. The court entered an injunction with the restrictions described above and directed the Clerk of Court to close the action. The opinion calls the injunction “preliminary” in one section but describes it as “permanent” in the conclusion.