Sealy, Inc., a Corp. v. Easy Living, Inc., a Corp., & Danco, Inc., & Jack Ward Mattress, Inc., D/B/A Pacifica Mattress Co., 743 F.2d 1378 (9th Cir. 1984). · Go Syfert
Sealy, Inc., a Corp. v. Easy Living, Inc., a Corp., & Danco, Inc., & Jack Ward Mattress, Inc., D/B/A Pacifica Mattress Co., 743 F.2d 1378 (9th Cir. 1984). Cases Citing This Book View Copy Cite
203 citation events (78 in the last 25 years) across 26 distinct courts.
Strongest positive: Ecological Rights Foundation v. United States Army Corps of Engineers, et al. (cand, 2025-10-29)
Treatment trajectory · 1985 → 2026 · click a year to view as-of
1985 2005 2026
Top citers, strongest first. 50 distinct citers. How cited ↗
discussed Cited as authority (rule) Ecological Rights Foundation v. United States Army Corps of Engineers, et al.
N.D. Cal. · 2025 · confidence medium
Even where 24 the opposing party fails to do so, however, the Court may not “accept[ ] uncritically [the 25 moving party’s] representations concerning the time expended.” See Sealy, Inc. v. Easy 26 Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984). 27 Here, defendants, without identifying any particular billing entries they assert are 1 fees and costs relating to (1) “the preparation, filing, and service of a straightforward 2 FOIA complaint” (see Opp. at 21:9-10), (2) “clerical tasks like preparing documents for 3 service, filing proofs of service, and checking status of service�…
discussed Cited as authority (rule) Patrick Castro v. C&C Verde LLC
9th Cir. · 2025 · confidence medium
The district court’s one-sentence treatment of the $5,108.00 in costs is “conclusory and unsupported by any analysis of the time records actually presented in this case[.]” Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984).
discussed Cited as authority (rule) Maxwell v. Pacione
E.D. Cal. · 2024 · confidence medium
Cal. 2002); see McGrath v. Cnty. of Nevada, 67 F.3d 248 , 254 n.5 (9th Cir. 11 1995) (a court may not adopt representations regarding the reasonableness of time expended 12 without independent review); Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984) 13 (remanding an action for a thorough inquiry on the fee request when “the district court engaged in 14 the ‘regrettable practice’ of adopting the findings drafted by the prevailing party wholesale” and 15 explaining a court should not “accept[] uncritically [the] representations concerning the time 16 expended”).…
cited Cited as authority (rule) ZABLOTNEY v. WINDBER HOSPITAL, INC.
W.D. Pa. · 2024 · confidence medium
Cal. Dec. 28, 2022) (citing Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984); Partners for Health and 23 Home, L.P. v. Seung Wee Yang, 488 B.R. 431, 439 (C.D.
discussed Cited as authority (rule) Staton v. City and County of Butte-Silver Bow
D. Mont. · 2024 · confidence medium
A court “may not ‘uncritically’ accept the number of hours claimed by the prevailing party, even if actually spent on the litigation, but must, in order to award fees based on them, find ‘that the time actually spent was reasonably necessary.’” Carson v. Billings Police Dep’t, 470 F.3d 889, 893 (9th Cir. 2006) (quoting Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984)).
discussed Cited as authority (rule) Ambrose v. US Med-Equip, LLC
E.D. Cal. · 2024 · confidence medium
Cal. 2002); see 27 also McGrath v. Cnty. of Nev., 67 F.3d 248 , 254 n.5 (9th Cir. 1995) (noting a court may not 1 reviewing the record); Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 2 1984) (remanding an action for a thorough inquiry on the fee request where “the district court 3 engaged in the ‘regrettable practice’ of adopting the findings drafted by the prevailing party 4 wholesale” and explaining a court should not “accept[ ] uncritically [the] representations 5 concerning the time expended”). 6 The party seeking fees bears the burden of establishing that the…
discussed Cited as authority (rule) Richter v. Oracle America, Inc.
N.D. Cal. · 2023 · confidence medium
The Court cannot “uncritically” accept the 14 plaintiff’s representations of hours expended; rather, the Court must assess their reasonableness. 15 Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984).
discussed Cited as authority (rule) Unite Here! Local 2 v. Stix Holdings, LLC (2×) also: Cited "see"
N.D. Cal. · 2023 · confidence medium
Cal. 2002) (citing Sealy, Inc. v. 3 Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984)).
discussed Cited as authority (rule) Jackson v. Fastenal Company
E.D. Cal. · 2023 · confidence medium
Cal. 2002); see 13 also McGrath v. Cnty. of Nev., 67 F.3d 248 , 254 n.5 (9th Cir. 1995) (noting a court may not 14 adopt representations regarding the reasonableness of time expended without independently 15 reviewing the record); Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 16 1984) (remanding an action for a thorough inquiry on the fee request where “the district court 17 engaged in the ‘regrettable practice’ of adopting the findings drafted by the prevailing party 18 wholesale” and explaining a court should not “accept[ ] uncritically [the] representations 19 co…
cited Cited as authority (rule) MetaQuotes Ltd. v. MetaQuotes Software Corp.
C.D. Cal. · 2023 · confidence medium
Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1384 (9th Cir. 1984).
cited Cited as authority (rule) Brown v. Sonoma County Land Company
N.D. Cal. · 2023 · confidence medium
Cal. 2002) (citing Sealy, Inc. v. Easy 21 Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984)).
discussed Cited as authority (rule) Dominguez v. City Of San Jose
N.D. Cal. · 2023 · confidence medium
The Court cannot “uncritically” accept the 9 Plaintiffs’ representations of hours expended; rather, the Court must assess their reasonableness. 10 Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984).
discussed Cited as authority (rule) Teetex LLC v. Zeetex, LLC
N.D. Cal. · 2022 · confidence medium
Even if the opposing party has not objected to the time billed, the 26 district court “may not uncritically accept a fee request” but is obligated to review the time billed 27 and assess whether it is reasonable in light of the work performed and the context of the case. 1 Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984)); see also McGrath v. County of Nevada, 67 F.3d 2 248 , 254 n. 5 (9th Cir. 1995) (noting that court may not adopt prevailing party's representations 3 without conducting an independent review of the fee application).
cited Cited as authority (rule) Arcona, Inc. v. Farmacy Beauty, LLC
C.D. Cal. · 2021 · confidence medium
Sealy, Inc. v. Easy 15 Living, Inc., 743 F.2d 1378, 1384 (9th Cir. 1984).
cited Cited as authority (rule) Johnson v. Mai
N.D. Cal. · 2020 · confidence medium
Sealy, Inc. v. 12 Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984).
cited Cited as authority (rule) Funk v. Bank of Hawaii
N.D. Cal. · 2020 · confidence medium
Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984).
cited Cited as authority (rule) PG&E Corporation
Bankr. N.D. Cal. · 2020 · confidence medium
Car Leasing Long–Term Disability Plan, 466 F.3d 727, 733 (9th Cir. 2006), and Sealy, Inc. v. Easy Living, Inc., 27 743 F.2d 1378, 1385 (9th Cir. 1984).
cited Cited as authority (rule) Quantum Labs, Inc. v. Maxim Integrated Products Inc
N.D. Cal. · 2020 · confidence medium
Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984).
discussed Cited as authority (rule) BoxNic Anstalt v. Gallerie degli Uffizi
D. Ariz. · 2020 · confidence medium
Attorneys’ Fees Under the Lanham Act. 2 Under 15 U.S.C. § 1117 (a), a court may award reasonable attorneys’ fees to the 3 “prevailing party” in trademark litigation if the court determines the case to be 4 “exceptional.” “A trademark case is exceptional for purposes of an award of attorneys’ 5 fees when the infringement is malicious, fraudulent, deliberate or willful.” Sealy, Inc. v. 6 Easy Living, Inc., 743 F.2d 1378, 1384 (9th Cir. 1984); see also Octane Fitness, LLC v. 7 ICON Health & Fitness, Inc., 572 U.S. 545, 554 (2014) (“[A]n ‘exceptional’ case is simply 8 one …
discussed Cited as authority (rule) Feldblyum v. Eight Brothers Development, LLC
D.D.C. · 2020 · confidence medium
Indeed, the party requesting attorneys fees should submit evidence that supports the hours worked and rates claimed, id. at 433 , and should make a showing that the time spent was reasonably necessary and that the rate applied is a customary fee in that geographic area, Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984);FrankMusic Corp., 886 F.2d at 1557 (explaining that an attorney's testimony and documentation supports his claim for fees); see Johnson v. University College, 706 F.2d 1205, 1207 (11th Cir. 1983) (same).
cited Cited as authority (rule) Baskin-Robbins Franchising LLC v. Chun
N.D. Cal. · 2019 · confidence medium
Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984).
discussed Cited as authority (rule) Edward O'bannon, Jr. v. Ncaa
9th Cir. · 2018 · confidence medium
The district court neither “accepted uncritically plaintiff’s representations concerning the time expended on this case, [nor] awarded the entire amount requested by plaintiff.” Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984).
cited Cited as authority (rule) Rea Paeste v. Government of Guam
9th Cir. · 2015 · signal: cf. · confidence medium
Cf Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984). 3.
cited Cited as authority (rule) Stormans Inc v. John Wiesman
9th Cir. · 2015 · confidence medium
Car Leasing Long-Term Disability Plan, 466 F.3d 727, 733 (9th Cir.2006) (alteration in original) (quoting Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984)).
discussed Cited as authority (rule) Torchia v. W.W. Grainger, Inc.
E.D. Cal. · 2014 · confidence medium
See Common Cause v. Jones, 235 F.Supp.2d 1076, 1079 (C.D.Cal.2002); see also McGrath v. County of Nevada, 67 F.3d 248 , 254 n. 5 (9th Cir.1995) (noting a court may not adopt representations regarding the reasonableness of time expended without independently reviewing the record); Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984) (remanding an action for a thorough inquiry on the fee request where “the district court engaged in the ‘regrettable practice’ of adopting the findings drafted by the prevailing party wholesale” and explaining a court should not “aecept[ ] …
cited Cited as authority (rule) Rodriguez v. Barrita, Inc.
N.D. Cal. · 2014 · confidence medium
Common Cause v. Jones, 235 F.Supp.2d 1076, 1079 (C.D.Cal.2002) (citing Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984)).
discussed Cited as authority (rule) Family Pac v. Robert Ferguson
9th Cir. · 2014 · confidence medium
Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984), is readily distinguishable because the record shows that Family PAC exercised billing judgment to reduce its fee request and that the district court examined the request carefully, reducing it further. 5.
cited Cited as authority (rule) Partners for Health & Home, L.P. v. Seung Wee Yang
C.D. Cal. · 2012 · confidence medium
Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984).
discussed Cited as authority (rule) Cotton ex rel. McClure v. City of Eureka
N.D. Cal. · 2012 · confidence medium
Common Cause v. Jones, 235 F.Supp.2d 1076, 1079 (C.D.Cal.2001) (citing Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984)); see also McGrath v. County of Nevada, 67 F.3d 248 , 254 n. 5 (9th Cir.1995) (noting that court may not adopt prevailing party’s representations without conducting an independent review of the fee application).
discussed Cited as authority (rule) Tracfone Wireless, Inc. v. Pak China Group Co.
S.D. Fla. · 2012 · confidence medium
See Nestle, 982 F.2d at 643-44 (applying the material difference exception, e.g., differences in the composition, presentation and shape of premium chocolates); Original Appalachian Artworks, 816 F.2d at 73 (applying the material difference exception where the infringing Cabbage Patch Kids dolls had Spanish language adoption papers and birth certificates, rather than English); Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1384-85 (9th Cir.1984) (finding willful infringement where the defendant sold genuine Sealy mattresses together with non-Sealy foundations); Singer Mfg.
discussed Cited as authority (rule) TracFone Wireless, Inc. v. SND Cellular, Inc.
S.D. Fla. · 2010 · confidence medium
See Nestle, 982 F.2d at 643-44 (applying the material difference exception, e.g., differences in the composition, presentation and shape of premium chocolates); Original Appalachian Artworks, 816 F.2d at 73 (applying the material difference exception where the infringing Cabbage Patch Kids dolls had Spanish language adoption papers and birth certificates, rather than English); Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1384-85 (9th Cir.1984) (finding willful infringement where the defendant sold genuine Sealy mattresses together with non-Sealy foundations); Singer Mfg.
discussed Cited as authority (rule) Tracfone Wireless, Inc. v. Anadisk LLC
S.D. Fla. · 2010 · confidence medium
See Nestle, 982 F.2d at 643-44 (applying the material difference exception, e.g., differences in the composition, presentation and shape of premium chocolates); Original Appalachian Artworks, 816 F.2d at 73 (applying the material difference exception where the infringing Cabbage Patch Kids dolls had Spanish language adoption papers and birth certificates, rather than English); Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1384-85 (9th Cir.1984) (finding willful infringement where the defendant sold genuine Sealy mattresses together with non-Sealy foundations); Singer Mfg.
cited Cited as authority (rule) Meridian Transportation Resources, LLC v. Magic Carrier Resources LLC
D. Or. · 2007 · confidence medium
In Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1384 (9th Cir.1984), the defendant deliberately intended to deceive consumers and take advantage of Seal/s brand identification.
discussed Cited as authority (rule) Kathy Carson v. Billings Police Department David Ward Larry Reinlasoder Seth Weston Mike Scheino (2×)
9th Cir. · 2006 · confidence medium
Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984). .
discussed Cited as authority (rule) Carson v. Billings
9th Cir. · 2006 · confidence medium
Title 42 U.S.C. § 1988 refers only 15 Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984). 16 Id. 1 I concur because the district court permissibly relied on the fact that the hours in dispute were spent on a premature, and thus unnecessary, docu- ment.
discussed Cited as authority (rule) Silver v. Executive Car Leasing
9th Cir. · 2006 · confidence medium
The Ninth Circuit has reiterated, both before and after the Supreme Court’s decision in Bessemer, that it reviews a district court’s findings of fact “with special scrutiny” when a district court “engage[s] in the regrettable practice of adopting the findings drafted by the prevailing party wholesale.” Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984); see also In re T.H.
discussed Cited as authority (rule) Silver v. Executive Car Leasing Long-Term Disability Plan
9th Cir. · 2006 · confidence medium
The Ninth Circuit has reiterated, both before and after the Supreme Court’s decision in Bessemer , that it reviews a district court’s findings of fact “with special scrutiny” when a district court “engage[s] in the regrettable practice of adopting the findings drafted by the prevailing party wholesale.” Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984); see also In re T.H.
discussed Cited as authority (rule) Silver v. Executive Car Leasing Long-Term Disability Plan
9th Cir. · 2006 · confidence medium
The Ninth Circuit has reiterated, both before and after the Supreme Court’s decision in Bessemer , that it reviews a district court’s findings of fact “with special scrutiny” when a district court “engage[s] in the regrettable practice of adopting the findings drafted by the prevailing party wholesale.” Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984); see also In re T.H.
discussed Cited as authority (rule) Earthquake Sound Corporation v. Bumper Industries, Earthquake Sound Corporation v. Bumper Industries (2×)
9th Cir. · 2003 · confidence medium
See Comm. for Idaho's High Desert, Inc. v. Yost, 92 F.3d 814 , 825 (9th Cir.1996) (attorney's fees awarded on appeal where defendant knowingly and intentionally infringed in order to cause confusion and interfere with plaintiff's environmental agenda); Transgo, Inc. v. Ajac Transmission Parts Corp., 768 F.2d 1001, 1027 (9th Cir.1985) (affirming award of attorney's fees where plaintiff was successful in prevailing over defendant on most claims and record contained substantial evidence of deliberate infringement, including continued infringement in violation of injunction); Sealy, Inc. v. Easy L…
discussed Cited as authority (rule) Harrison Music Corp. v. Tesfaye
D.D.C. · 2003 · confidence medium
The party requesting attorneys fees should submit evidence that supports the hours worked and the rates claimed, Hensley, 461 U.S. at 433 , 103 S.Ct. 1933 , and should make a showing that the time spent was reasonably necessary and that the rate is a customary fee in the area, Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984); Frank Music Corp., 886 F.2d at 1557 (explaining that an attorney’s testimony and documentation supports his claim for fees); see Johnson v. University College, 706 F.2d 1205, 1207 (11th Cir.1983) (explaining that an attorney’s testimony and documen…
discussed Cited as authority (rule) Gracie v. Gracie
9th Cir. · 2000 · confidence medium
In Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984), we reversed an award of attorneys’ fees and remanded after finding that the district court “appears to have accepted uncritically plaintiffs representations concerning the time expended on this case,” awarding the entire amount requested without question.
discussed Cited as authority (rule) Carley Gracie, an Individual Gracie Usa, a California Corporation, Plaintiffs-Counter v. Rorion Gracie Brajitsu, a California Corporation W.O.W. Promotions Semaphore Entertainment Group, Defendants-Counter-Claimants-Appellees
9th Cir. · 2000 · confidence medium
In Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir. 1984), we reversed an award of attorneys' fees and remanded after finding that the district court "appears to have accepted uncritically plaintiff's representations concerning the time expended on this case," awarding the entire amount requested without question.
discussed Cited as authority (rule) Rolex Watch, U.S.A., Inc. v. Michel Co.
9th Cir. · 1999 · confidence medium
First, under 15 U.S.C. § 1117 (a), “[t]he court in exceptional eases may award reasonable attorney fees to the prevailing party.” A trademark infringement is viewed as “exceptional” under § 1117(a) “when the infringement is malicious, fraudulent, deliberate or willful.” Lindy Pen Co. v. Bic Pen Corp., 982 F.2d 1400, 1409 (9th Cir.1993) (citing Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1384 (9th Cir.1984)).
discussed Cited as authority (rule) Rolex Watch Usa, Inc. v. Robert Meece, Doing Business as American Wholesale Jewelry (2×)
5th Cir. · 1998 · confidence medium
In Joy, the court found that, as a result of other lawsuits, the defendant was fully aware that its practices were unlawful and that, even after being enjoined from such acts in a number of cases, the defendant continued to use counterfeit nameplates of other valve manufacturers on its reconditioned valves. 89 Rolex also relies on Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1384-85 (9th Cir.1984), where the defendants sold genuine Sealy mattresses together with non-Sealy foundations with identical fabric covering.
cited Cited as authority (rule) Lockheed Martin Corp. v. Network Solutions, Inc.
C.D. Cal. · 1997 · confidence medium
Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1382 (9th Cir. 1984).
discussed Cited as authority (rule) Lumiere (Rights) Limited, a Corporation v. Baker & Taylor, Inc., a Corporation Hollywood Entertainment Corporation, a Corporation Dba Hollywood Video Jim Patterson, Dba Video Gold Mark J. Thomas, Dba Video Gold
9th Cir. · 1997 · confidence medium
It considers carefully, but rejects, appellants' allegations that Lumiere's counsel were surreptitiously attributing work performed in pursuit of a concurrent California litigation as work performed in this case. 23 Our role is to review for an abuse of discretion, Frank Music Corp., 886 F.2d at 1556 , not to review an award with "special scrutiny." See Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984) (reviewing a fee award with special scrutiny because the district court had adopted the findings drafted by the prevailing party wholesale).
discussed Cited as authority (rule) Columbia Pictures Television v. Krypton Broadcasting Of Birmingham, Inc.
9th Cir. · 1997 · confidence medium
Intel Corp. v. Terabyte Int'l, Inc., 6 F.3d 614, 623 (9th Cir.1993); see also Frank Music, 886 F.2d at 1557 ("In setting a reasonable attorneys fee, the district court should make specific findings of the rate and hours it has determined to be reasonable."); Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984) ("The district court appears to have accepted uncritical plaintiff's representations concerning the time expended on this case, and it awarded the entire amount requested by plaintiff.
discussed Cited as authority (rule) Columbia Pictures Television v. Krypton Broadcasting of Birmingham, Inc.
9th Cir. · 1997 · confidence medium
Intel Corp. v. Terabyte Int'l Inc., 6 F.3d 614, 623 (9th Cir.1993); see also Frank Music, 886 F.2d at 1557 (“In setting a reasonable attorneys fee, the district court should make specific findings of the rate and hours it has determined to be reasonable.”); Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1385 (9th Cir.1984) (“The district court appears to have accepted uncritical plaintiffs representations concerning the time expended on this case, and it awarded the entire amount requested by plaintiff.
discussed Cited as authority (rule) Microsoft Corp. v. Grey Computer
D. Maryland · 1995 · confidence medium
Courts have held that “[a] trademark case is exceptional for purposes of an award of attorneys’ fees where the infringement is malicious, fraudulent, deliberate or wilful.” Sealy, Inc. v. Easy Living, Inc., 743 F.2d 1378, 1384 (9th Cir.1984) (citing Playboy Enterprises v. Baccarat Clothing Co., Inc., 692 F.2d 1272, 1276 (9th Cir.1982); also see Quality Inns Int'l 695 F.Supp. at 222 .
Retrieving the full opinion text from the archive…
SEALY, INCORPORATED, a Corporation, Plaintiff-Appellee,
v.
EASY LIVING, INC., a Corporation, Defendant, and Danco, Inc., and Jack Ward Mattress, Inc., D/B/A Pacifica Mattress Company, Defendants-Appellants
83-5892, 83-6219.
Court of Appeals for the Ninth Circuit.
Oct 1, 1984.
743 F.2d 1378
Maurice L. Muehle, Frederic F. Brace, Jr., Chicago, Ill., for defendants-appellants., Jill S. Slater, Latham & Watkins, Los Angeles, Cal., for plaintiff-appellee.
Goodwin, Farris, Poole.
Cited by 144 opinions  |  Published
POOLE, Circuit Judge:

This trademark infringement action was brought by Sealy, Incorporated against Jack Ward Mattress company, d/b/a Pacifica Mattress Company (“Pacifica”) and Dan-co, Inc. [1] Defendants counterclaimed under federal antitrust laws. Defendants appeal from the district court’s dismissal of their counterclaims, entry of a permanent injunction against them, and award to plaintiff of attorney’s fees. With the exception of the challenge to the award of attorney's fees, we find that none of appellant’s objections require reversal.

I. FACTS.

A. The Parties.

Sealy is an association of bedding manufacturers which owns and licenses the “Sealy” trademark. Sealy, Inc. establishes standards for the manufacture of bedding products to be sold under its name.

[*1381] Danco, an organization of manufaeturer’s representatives, advertises and sells a variety of bedding products, including those of defendant-appellant Pacifica.

Pacifica, a bedding manufacturer located in San Diego, California, is wholly-owned by Ohio-Sealy Mattress Manufacturing Co. (“Ohio-Sealy”). Ohio-Sealy itself manufactures bedding and, unlike its subsidiary Pacifica, is a Sealy licensee. In 1971, OhioSealy sued Sealy, Inc. under federal antitrust laws, claiming that its licensing arrangement perpetuated practices held illegal i n United States v. Sealy, 388 U.S. 350, 87 S.Ct. 1847, 18 L.Ed.2d 1238 (1967). The long history of dissension between Sealy, Inc and Ohio-Sealy is recited m the antitrust counterclaim filed by Danco m this action. [2]

B. The present case.

In May 1982, Danco began to offer genuine Sealy mattresses, acquired from an Ohio-Sealy subsidiary in Texas, together with non-Sealy Pacifica foundations made by Pacifica with identical fabric covering or “ticking.” The foundations bore no identifying labels. The mattress and foundation combination thus gave the impression of , . . , . i , ti , being a matched set, and at Danco s sug-gestión were advertised by some retailers as, a “Sealy Back-Saver and matching foundation.”

Sealy, Inc. brought this suit against Dan-co in August 1982, seeking an injunction against sale of the mixed Sealy-Pacifica bed sets. Pacifica was joined as a defendant in October 1982.

Soon after the suit was filed, Pacifica began attaching labels to the top of each non-Sealy matching foundation identifying it as a “Quality Foundation Manufactured by Pacifica Mattress Co.” The label was usually concealed, however, when the foundation was displayed in stores beneath a mattress. After Sealy moved for a preliminary injunction, Pacifica began to attach a second label to the sides of the foundation, and to distribute signs to retailers for display with the Sealy-Pacifica sets. The signs stated: “Sleep on two great names in bedding * * * Mattresses by SEA-LY/Foundations by PACIFICA.”

The district court entered & pre]iminary injunction in December 1982, and in April 1983> following a non-jury trial, entered a permanent injunction prohibiting defend-antg from gel]ing foundations covered with ticki gimi]ar or identical t that g , ^ unlegg each foundation wag ¿ be]]ed Mtl to disclaim association ^ geal and unlegg ora] disclosure was made at the retaü int.of.sale that the foundation is not of Sealy brand or manufacture.

district court dismissed defendants counterclaim for lack of standing.

On August 4, 1983, without á separate evidentiary hearing, the district court filed its judgment awarding plaintiffs $300,328 in attorney’s fees,

TT nrcoTTccTAM 11. DlbOUoolUJN.

a. Evidence of Contributory Infringement.

, , . Appellants argue that there was insuffi-cjent evidence of contributory infringement of Sealy>s trademark. We find that substantial evidence supported the district court>s finding of liability.

A manufacturer may be held liable for contributory trademark infringement even if it does not itself mislabel goods or deceive consumers. The Supreme Court stated in Inwood Laboratories v. Ives Laboratories, 456 U.S. 844, 854, 102 S.Ct. 2182, 2188, 72 L.Ed.2d 606 (1982):

[*1382] [I]f a manufacturer or distributor intentionally induces another to infringe a trademark, or if it continues to supply its product to one whom it knows or has reason to know is engaging in trademark infringement, the manufacturer is contributorily responsible for any harm done as a result of the deceit.

The determination of contributory infringement thus turns on the defendant’s intent and his knowledge of the wrongful activities of his distributors. Compare In-wood Laboratories, supra, (no liability for manufacturer of generic drug sold in gelatin capsules identical to plaintiffs’ where defendant did not knowingly sell to infringing pharmacists) with Warner & Co. v. Lilly & Co., 265 U.S. 526, 530, 44 S.Ct. 615, 617, 68 L.Ed. 1161 (1924) (contributory infringement where defendant’s salesmen suggested to retailers that defendant’s “Quin-Coco” could be sold as plaintiff’s more expensive “Coco-Quinine”). A manufacturer may escape liability if it takes effective measures to prevent infringing uses by its distributors. Callman, Unfair Competition, Trademarks, and Monopolies, § 22.10 at n. 20.

The district court found that defendants foresaw and intended that Pacifica foundations would be passed off as Sealy products. The identical ticking and the advertisements offering the Pacifica product as a “matching foundation” for the Sealy mattress support this conclusion.

The district court also found that defendants’ remedial measures were inadequate. This finding is not clearly erroneous. The labels attached to the foundations could not easily be seen. Even if they were noticed, neither they nor the signs belatedly distributed to retailers explicitly denied that the Pacifica foundation was a Sealy product. Even a relatively sophisticated consumer might suppose that the “matching” Pacifica foundation was made under license from Sealy, Inc. Plaintiff’s witnesses testified at trial that retail salesmen made no attempt to correct their misunderstanding that the Sealy mattress and Pacifica foundation were both made by Sealy. Defendants’ measures did not overcome the misleading impression conveyed by the matching fabric ticking.

B. Exclusion of Evidence.

The district court excluded deposition testimony that would have shown that Sealy had never objected to Ohio-Sealy’s established east-coast practice of selling non-Sealy “polybox” foundations with matching ticking, similar to Pacifica’s, together with Sealy mattresses. Appellants argue that Sealy’s acquiescence in this practice demonstrates that Sealy did not consider the polybox foundation with matching ticking to be an infringing product.

The district court did not abuse its discretion by excluding this evidence. Unlike Pacifica’s foundations, the east coast poly-box foundations were manufactured by Ohio-Sealy, a Sealy licensee, over which Sealy might exercise some degree of supervision and control. In any event, whether Sealy, under different circumstances, objected to sale of its mattresses with non-Sealy foundations in east coast markets is ultimately irrelevant to whether Pacifica and Danco intended that Pacifica’s foundations would be passed off as Sealy products.

C. Exclusion of Tauber Testimony.

The district court refused to allow the testimony of appellants’ expert witness, Prof. Edward Tauber, because appellants had not provided Sealy with the “short narrative statement of qualifications of the expert and the testimony expected to be elicited at trial,” as required by Central District of California Local Rule 9.4.6 (formerly 9.6.6).

Appellants admit their failure to comply with the rule, but argue that a lesser penalty ought to have been imposed. We disagree.

The district court may, in its discretion, exclude expert witnesses not disclosed in pre-trial as required by local rules. Wirtz v. Hooper-Holmes Bureau, [*1383] Inc., 327 F.2d 939 (5th Cir.1964). Appellants offer no justification for non-compliance with the local rule. Failure to give notice of an expert witness’s testimony until immediately before his appearance at trial was clearly prejudicial to opposing counsel. The district court did not abuse its discretion in refusing to admit Tauber’s testimony.

D. Rulings on depositions in camera.

Rather than having deposition testimony read orally into the record, the district court required deposition transcripts to be submitted with marginal notations and counter-notations showing testimony to be offered and opposing counsel’s objections. During the course of the trial, the deposition transcripts were returned with the courts’ additional notations showing which objections had been sustained and which overruled.

Appellants object to this procedure and urge that they are entitled to oral argument on evidentiary rulings. We do not find the district court’s procedure was improper.

Apart from general allegations that the procedure “impermissibly encumbered” the defense, appellants have shown no way in which their trial presentation would have differed if they had known in advance the evidentiary rulings. Moreover, except for evidence concerning east coast distribution of Ohio-Sealy polybox foundations, discussed in section II B above, appellants point to no deposition evidence that they claim was erroneously excluded.

Appellants have shown no prejudice to them from the district court’s procedure. The district court’s in camera review of written deposition testimony reduced the time required for trial, and was not an abuse of its discretion.

E. Did the district court’s conduct prejudice appellant?

Appellants argue that the district judge displayed hostility and bias against them. Having reviewed the entire trial transcript, we disagree.

The district judge showed no bias from any extrajudicial source. United States v. Grinell Corp., 384 U.S. 563, 583, 86 S.Ct. 1698, 1710, 16 L.Ed.2d 778 (1966); United States v. Azhocar, 581 F.2d 735 (9th Cir.1978) cert. denied, 440 U.S. 907, 99 S.Ct. 1213, 59 L.Ed.2d 454 (1979). His questions and comments, which appellants attempt to characterize as prejudice, merely demonstrated familiarity with the trial briefs and deposition testimony. The trial judge cannot, and should not, erase from his mind all knowledge of the case before trial begins, and he need not passively refrain from interfering in the trial of matters before him.

It is the right and duty of the Federal trial judge to facilitate, by direct participation, the orderly progress of a trial. Queries by the judge which aid in clarifying the testimony of witnesses, expedite the examination or confine it to relevant matters in order to arrive at the ultimate truth, are eminently proper so long as the authority is exercised in a non-prejudicial manner.

Richmond v. Weiner, 353 F.2d 41, 49 (9th Cir.1965), quoting Ochoa v. United States, 167 F.2d 341, 344 (9th Cir.1948). The district judge’s actions were properly within his discretion. Though he made no secret of his skepticism of appellants’ position, appellants were permitted to respond to the district court’s expressed concerns to the best of their ability. There is no ground for reversal.

F. This action was not required to be a compulsory counterclaim in another case.

The district court denied appellants’ motion to dismiss on the ground that this case should have been filed as a compulsory counterclaim in an antitrust action brought by Pacifica and Ohio-Sealy against Sealy, Inc. in the Northern District of Illinois. We affirm the district court’s decision.

A compulsory counterclaim is one arising from the “same transaction or occurrence”[*1384] as the original claim. F.R.Civ.P. 13(a). Here, the Illinois action challenges Sealy Inc.’s refusal to license Pacifica to manufacture Sealy-brand products. The present case, on the other hand, concerns the imitation-Sealy products manufactured and sold by Pacifica despite that refusal. The cases involve completely different factual and legal issues, and arise from different transactions or occurrences. See Kuster Laboratories v. Lee, 10 F.R.D. 350, 351 (N.D.Cal.1950).

G. Dismissal of Danco’s counterclaim.

The district court dismissed a counterclaim filed by Danco alone, before Pacifica was made a defendant in the case.

Danco’s counterclaim recited a long history of acts by which Sealy Inc. had allegedly attempted to restrain Ohio-Sealy and its subsidiaries, including Pacifica, from competing freely with other Sealy licensees. It claims that these acts, including the present trademark infringement action, violate federal antitrust laws.

The counterclaim was properly dismissed for lack of standing. The conspiracy alleged in that pleading was aimed at Ohio-Sealy and Pacifica, not Danco itself. As a sales representative for Pacifica, Danco’s alleged injury is not sufficiently direct to confer antitrust standing. See Assoc. Gen. Contractors of Cal. v. Cal. St. Council, 459 U.S. 519, 103 S.Ct. 897, 74 L.Ed.2d 723 (1983); Solinger v. A & M Records, Inc., 586 F.2d 1304, 1311-12, n. 8 (9th Cir.1978), cert. denied 441 U.S. 908, 99 S.Ct. 1999, 60 L.Ed.2d 377 (1979) (employee has no standing to sue for antitrust injury to employer); Calderone Enterprises Corp. v. United Artists Theatre Circuit, Inc., 454 F.2d 1292, 1295 (2nd Cir.1971), cert. denied 406 U.S. 930, 92 S.Ct. 1776, 32 L.Ed.2d 132 (1972) (landlord lacks standing to sue for antitrust injury to his tenant). The sole action taken by Sealy Inc. directly against Danco — this lawsuit — does not form the basis for antitrust liability. See California Motor Transport Co. v. Trucking Unlimited, 404 U.S. 508, 92 S.Ct. 609, 30 L.Ed.2d 642 (1972) (use of courts not a basis for antitrust liability without evidence that litigation is a sham or for purpose of harassment). See also Coca-Cola v. Overland, Inc., 692 F.2d 1250, 1257 n. 17 (9th Cir.1982) (no authority for holding meritorious lawsuits to be “sham” litigation viola-tive of antitrust laws).

H. A ttorneys Fees.

Finally, appellants challenge the district court’s award of $300,328 in attorneys’ fees to Sealy. Since we find the record before us to be inadequate to permit review, we remand to the district court to make further findings.

Award of attorneys’ fees is in the discretion of the district court, and we will not disturb an award unless the district court has abused its discretion. Sapper v. Lenco Blade, Inc., 704 F.2d 1069 (9th Cir.1983); Playboy Enterprises v. Baccarat Clothing Co., Inc., 692 F.2d 1272 (9th Cir.1982); Kerr v. Screen Extras Guild, Inc., 526 F.2d 67 (9th Cir.1975), cert. denied 425 U.S. 951, 96 S.Ct. 1726, 48 L.Ed.2d 195 (1976).

Under 15 U.S.C. § 1117, reasonable attorneys’ fees may be awarded “in exceptional [trademark] cases.” A trademark case is exceptional for purposes of an award of attorneys’ fees where the infringement is malicious, fraudulent, deliberate or wilful. Playboy Enterprises v. Baccarat Clothing Co. Inc., 692 F.2d 1272, 1276 (9th Cir.1982). See Senate Report No. 93-1400, 93rd Congress, Second Session (1974), reprinted in 1974 U.S.Code Cong. & Ad.News 7132.

The district court found that appellants’ conduct constituted “wilful and deliberate, bad faith infringement of Sealy’s trademarks that was intended to and in fact did result in deception of the public.” We conclude that this finding is supported by the record in this case. There was substantial evidence tending to show that appellants manufactured and sold their look-alike foundations deliberately to deceive consumers and to take advantage of Sealy’s brand identification. The district[*1385] court did not abuse its discretion in awarding attorneys’ fees in this case.

The amount of the award, however, is troubling. The district court’s award, $300,328, is extraordinarily high and, although a proper record might support sucfy an award in this case, the record before us does not permit adequate review of the factors upon which the district court based its decision. [3]

The district court appears to have accepted uncritically plaintiff’s representations concerning the time expended on this case, and it awarded the entire amount requested by plaintiff. Such a procedure is inadequate. Though plaintiff’s counsel submitted voluminous records to show that over 2,515.5 hours had actually been spent on this case, there is no showing that the time actually spent was reasonably necessary. “Counsel for the prevailing party should make a good faith effort to exclude from a fee request hours that are excessive, redundant, or otherwise unneces-r sary.” Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 1939-1940, 76 L.Ed.2d 40 (1983). No such effort appears to have been made here. [4]

The district court’s finding that the services rendered and the hours spent by plaintiffs counsel were “reasonable and necessary” is conclusory and unsupported by any analysis of the time records actually presented in this case. Though a more detailed review of plaintiff’s attorneys’ fee request may support this claim, the present record does not permit adequate review.

Moreover, the district court presented no basis for its finding that the rates charged by plaintiff’s counsel were reasonable. No effort appears to have been made to examine the “customary fee” prevailing in the community. Kerr v. Screen Extras Guild, Inc., 526 F.2d 67, 70 (9th Cir.1975), cert. denied, 425 U.S. 951, 96 S.Ct. 1726, 48 L.Ed.2d 195 (1976). Though the fee actually charged to the client may be an important factor, “whether or not [the client] agreed to pay a fee and in what amount is not decisive. * * * The criterion for the court is not what the parties agreed but what is reasonable” Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 718 (5th Cir.1974), quoting Clark v. American Marine Corp., 320 F.Supp. 709 (E.D.La.1970), affirmed 437 F.2d 959 (5th Cir.1971).

We remand to the district court to permit it to conduct a more thorough and detailed inquiry concerning application to this fee request of the twelve factors listed in Kerr, particularly with respect to the number of hours reasonably expended by attorneys for Sealy Inc. and the prevailing fees for work of similar nature and quality in the area. We express no opinion as to the proper amount of the ultimate fee award.

III. CONCLUSION.

The judgment of the district court granting a permanent injunction is AFFIRMED; the award of attorneys’ fees is REVERSED AND REMANDED for further findings consistent with this opinion.

1

. Sealy also sued Easy Living, Inc., a bedding retailer. Easy Living settled with Sealy before trial, and is not party to this appeal.

2

. Ohio-Sealy's antitrust action against Sealy, Inc. has resulted in a number of reported decisions. Ohio-Sealy Mattress Mfg. Co. v. Duncan, 714 F.2d 740 (7th Cir.1983), cert. denied, — U.S. -, 104 S.Ct. 712, 79 L.Ed.2d 176 (1984); Ohio-Sealy Mattress Mfg. Co. v. Kaplan, 712 F.2d 270 (7th Cir.), cert. denied, — U.S. -, 104 S.Ct. 509, 78 L.Ed.2d 698 (1983); Ohio-Sealy Mattress Mfg. Co. v. Sealy, Inc., 669 F.2d 490 (7th Cir.), cert. denied, 459 U.S. 943, 103 S.Ct. 257, 74 L.Ed.2d 201 (1982); Ohio-Sealy Mattress Mfg. Co. v. Sealy, Inc., 585 F.2d 821 (7th Cir.1978), ce rt. denied, 440 U.S. 930, 99 S.Ct. 1267, 59 L.Ed.2d 486 (1979).

3

. Because the district court engaged in the “regrettable practice” of adopting the findings drafted by the prevailing party wholesale, we review its findings with special scrutiny. Cher v. Forum Intern. Ltd., 692 F.2d 634, 637 (9th Cir.1982), cert. denied, — U.S. -, 103 S.Ct. 3089, 77 L.Ed.2d 1350 (1983).

4

. Jill Slater, attorney for Sealy Inc., testified at her deposition that, in her view, all of the time spent by plaintiff's attorneys was spent usefully. The proper standard, however, is not whether the attorneys involved felt their time was usefully spent, but whether the time spent was reasonably necessary to the effective prosecution of plaintiff's federal trademark claims.