Stuart Enters. International Inc. v. Peykan Inc.

A third party's prior registration of a trademark containing the word "Munchie's" did not prevent defendants from selling the trade name "Munchie's Italian Restaurant" as an asset of their business because trademarks and trade names are not identical interests.

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Stuart Enterprises International, Inc. and Andrew H. Stuart collectively, “Stuart” sued Peykan, Inc. and Jamshid Ahmadipour collectively, “Ahmadipour” for breach of contract and other claims arising out of Stuart’s purchase from Ahmadipour of an Athens’ business known as “Munchie’s Italian Restaurant.” Ahmadipour counterclaimed, alleging that Stuart was in default on the promissory note delivered in connection with the purchase, and asking for attorney fees for stubborn litigiousness. The trial court directed a verdict for Ahmadipour for $63,004.99 on his claim under the promissory note. The jury returned a verdict for Ahmadipour on Stuart’s claim of breach of contract, but awarded Stuart $360 on his claim for breach of the implied covenant of good faith and fair dealing. The jury awarded $23,000 to Ahmadipour on his litigiousness counterclaim. The trial court denied Stuart’s motion for a judgment notwithstanding the verdict or a new trial, but entered a judgment notwithstanding the verdict in favor of Ahmadipour.

On appeal, Stuart claims the trial court erred in i certain instructions to the jury regarding the sale of the “Munchie’s” name, ii granting Ahmadipour’s motion for a judgment notwithstanding the verdict on Stuart’s claim for breach of the implied covenant of good faith, and iii failing to grant his motion for a judgment notwithstanding the verdict on Ahmadipour’s stubborn litigiousness claim. We disagree and, for the reasons set forth below, we affirm.

Stuart Enters. International Inc. v. Peykan Inc.

A third party's prior registration of a trademark containing the word "Munchie's" did not prevent defendants from selling the trade name "Munchie's Italian Restaurant" as an asset of their business because trademarks and trade names are not identical interests.

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