Case Law Scurmont LLC v. Firehouse Rest. Grp., Inc.

Scurmont LLC v. Firehouse Rest. Grp., Inc.

Document Cited Authorities (44) Cited in (7) Related
ORDER

This is a trademark dispute between competing restaurants. Defendant Firehouse Restaurant Group, Inc. ("FRG") is the franchiser of the FIREHOUSE SUBS® restaurant franchise that operates more than 350 locations throughout various parts of the United States, including Myrtle Beach, South Carolina. The core menu item offered by FIREHOUSE SUBS® is submarine-style sandwiches. Defendants Three Alarm Subs, Inc. ("Three Alarm") and Fireside Restaurant Company, Inc. ("Fireside") are franchisees who own and operate FIREHOUSE SUBS® restaurants in the Myrtle Beach area. Plaintiff Scurmont, LLC ("Scurmont") also operates a restaurant in Myrtle Beach, South Carolina under the name CALLI BAKER'S FIREHOUSE BAR & GRILL ("CALLI BAKER'S"). CALLI BAKER'S is a full-service restaurant that offers a variety of menu items and incorporates a firehouse theme in its decor and menu. Plaintiff Heath Scurfield ("Scurfield") is the sole member of Scurmont and is an active-duty firefighter with Horry County Fire Rescue.

FRG has filed for and obtained more than 60 federal trademark and service mark registrations for its marks from the United States Patent and Trademark Office ("USPTO"). Of the 60 or more registered marks obtained by FRG, one mark is the term "FIREHOUSE" for use in restaurant services: Registration Number 3,173,030 ("FIREHOUSE word mark"). This mark appears to be the subject matter of the Plaintiffs' Complaint, specifically their Third Cause of Action for Trademark Cancellation due to Fraud. In their Counterclaim, the Defendants assert against the Plaintiffs, 34 of FRG's United States federal registrations (the "Registrations"), which include various forms of FIREHOUSE® and FIREHOUSE SUBS® marks used by the Defendants in connection with their business. The Registrations cover use of FRG's marks in connection with a broad scope of goods and services that include restaurant services, food products, sandwich platters, sandwiches, drinks, soups, salads, cookies, brownies, catering services, and restaurant franchising.

Statement of Undisputed Facts
I. Parties and Marks

FRG operates the FIREHOUSE SUBS® restaurant franchise. (Sorensen Decl. ¶2, Docket # 135-2). FIREHOUSE SUBS® restaurants offer a menu of submarine style sandwiches, drinks, salads, chili, dessert items, and related food products using a firefighter theme. (Id. ¶8; Defs.['s] Exs. A-1 & A-2, Docket #s 135-3 to -5). The first FIREHOUSE SUBS® restaurant opened in Jacksonville, Florida in October 1994. (Sorensen Decl. ¶3). Since that time, the chain has grown to more than 375 restaurants in 21 states. (Sorensen Dep., pp.34-37, Docket # 138-13). FRG operates more than 35 FIREHOUSE SUBS® restaurants throughout South Carolina. (Sorensen Decl. ¶10). The first FIREHOUSE SUBS® restaurant in South Carolina opened in 1998 in Georgetown, and a second restaurant opened two years later in Myrtle Beach. Both of those stores are now closed. (Sorensen Dep., pp.39-40). Nonetheless, the FIREHOUSESUBS® restaurant franchise has been very successful. Since its inception in 1994, its annual gross revenues have increased exponentially. In 1999, following 6 years of operation, sales exceeded $10 million. Six years later, in 2005, sales exceeded $100 million, and sales have doubled since then. (Sorensen Decl. ¶20).

FRG is the owner of the Registrations listed below:

+-----------------------------------------------------------------------------+
¦MARK                           ¦REG. NO.  ¦REG. DATE    ¦Class/Use           ¦
+-------------------------------+----------+-------------+--------------------¦
¦                               ¦1,903,135*¦July 4, 1995 ¦Restaurant Services ¦
+-------------------------------+----------+-------------+--------------------¦
¦                               ¦          ¦             ¦Restaurant Services,¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦1,983,934*¦July 2,1996  ¦Providing of Food   ¦
¦                               ¦          ¦             ¦and                 ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦Drink               ¦
+-------------------------------+----------+-------------+--------------------¦
¦                               ¦          ¦             ¦Restaurant Services ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦specializing in     ¦
¦FIREHOUSE SUBS                 ¦2.606,263*¦August       ¦submarine           ¦
¦                               ¦          ¦13,2002      ¦                    ¦
¦                               ¦          ¦             ¦style sandwiches for¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦public consumption  ¦
+-------------------------------+----------+-------------+--------------------¦
¦                               ¦          ¦             ¦Conducting employee ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦incentive award     ¦
¦                               ¦          ¦             ¦programs            ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦2,756,249*¦August 26,   ¦to promote ownership¦
¦                               ¦          ¦2003         ¦of                  ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦employee-owned      ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦franchise           ¦
¦                               ¦          ¦             ¦restaurants         ¦
+-------------------------------+----------+-------------+--------------------¦
¦                               ¦2,795,059*¦December 16, ¦Charitable Fund     ¦
¦                               ¦          ¦2003         ¦Raising             ¦
+-------------------------------+----------+-------------+--------------------¦
¦FIREHOUSE SUBS                 ¦2,795,060*¦December 16, ¦Charitable Fund     ¦
¦                               ¦          ¦2003         ¦Raising             ¦
+-------------------------------+----------+-------------+--------------------¦
¦                               ¦          ¦             ¦Clothing, namely    ¦
¦                               ¦          ¦             ¦t-shirts,           ¦
¦                               ¦2,866,824*¦July 27, 2004¦                    ¦
¦                               ¦          ¦             ¦golf shins and polo ¦
¦                               ¦          ¦             ¦shirts              ¦
+-------------------------------+----------+-------------+--------------------¦
¦FIREHOUSE                      ¦3,000,715 ¦September 27,¦Clothing, namely    ¦
¦                               ¦          ¦2005         ¦shirts              ¦
+-------------------------------+----------+-------------+--------------------¦
¦                               ¦          ¦             ¦Charitable fund     ¦
¦                               ¦          ¦             ¦raising;            ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦charitable          ¦
¦                               ¦          ¦             ¦fundraising         ¦
¦FIREHOUSE SUBS FIRST RES PONDER¦          ¦October 11,  ¦                    ¦
¦RELIEF FUND                    ¦3,006,000 ¦2005         ¦services for victims¦
¦                               ¦          ¦             ¦of                  ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦natural disasters   ¦
¦                               ¦          ¦             ¦and other           ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦catastrophes        ¦
+-------------------------------+----------+-------------+--------------------¦
¦                               ¦          ¦             ¦Charitable          ¦
¦                               ¦          ¦             ¦fundraising,        ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦namely, a fund for  ¦
¦                               ¦3,006,002 ¦October 11,  ¦victims             ¦
¦                               ¦          ¦2005         ¦                    ¦
¦                               ¦          ¦             ¦of natural disasters¦
¦                               ¦          ¦             ¦and                 ¦
¦                               ¦          ¦             ¦                    ¦
¦                               ¦          ¦             ¦other catastrophes  ¦
+-----------------------------------------------------------------------------+
+-----------------------------------------------------------------------------+
¦                       ¦3,012,834¦November 8, 2005 ¦Restaurant Franchising   ¦
+-----------------------+---------+-----------------+-------------------------¦
¦                       ¦3,012,835¦November 8, 2005 ¦Restaurant
...

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