The Bazooka Companies, Inc. v. Classic Confections Enterprises, Inc.

Background

Bazooka filed this action and sought a preliminary injunction—an order issued before final judgment—as well as expedited discovery. Bazooka alleged that Classic was selling Jewel Pop, a candy product confusingly similar to Bazooka’s Ring Pop candy, in violation of Bazooka’s intellectual-property rights and a November 25, 2019 settlement agreement. That agreement included a New York forum-selection provision.

The parties were also litigating a related dispute in the District of New Jersey involving Classic’s alleged copying of Bazooka’s Baby Bottle Pop candy. The New Jersey case included allegations concerning Classic’s earlier infringement of the Ring Pop design and the parties’ settlement agreement. The parties had exchanged information about the redesigned Jewel Pop during the New Jersey litigation and had discussed addressing the Jewel Pop allegations as part of resolving that case.

Transfer analysis

Under 28 U.S.C. § 1404(a), a federal court may transfer a civil case to another district when the transfer would serve the convenience of the parties and witnesses and the interests of justice, including when all parties consent. Courts may consider factors such as witness and party convenience, the location of facts and evidence, the parties’ resources, the plaintiff’s forum choice, trial efficiency, and the interests of justice.

Although the settlement agreement’s forum-selection clause was entitled to substantial weight, the court concluded that it did not prevent transfer. Both parties agreed that transfer to New Jersey was appropriate. The court found that keeping the cases in separate courts would be inefficient because they involved overlapping issues and information already exchanged in the New Jersey case. It also noted that Classic’s principal place of business was in New Jersey, which could favor the convenience of witnesses, the parties, and access to evidence.

Ruling

Judge Mary Kay Vyskocil ordered that the case be transferred to the District of New Jersey. The order did not rule on Bazooka’s request for a preliminary injunction or expedited discovery, and it did not resolve the parties’ underlying trademark, trade-dress, settlement-agreement, or other claims.