{"ID":63156,"name":"Lucky Brand Dungarees Inc. v. Marcel Fashions Group Inc.","href":"https:\/\/api.oyez.org\/cases\/2019\/18-1086","view_count":0,"docket_number":"18-1086","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Lucky Brand Dungarees Inc., et al.","second_party":"Marcel Fashions Group, Inc.","timeline":[{"event":"Granted","dates":[1561698000],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54570"},{"event":"Argued","dates":[1578895200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54644"},{"event":"Decided","dates":[1589432400],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54711"}],"lower_court":{"ID":7,"name":"United States Court of Appeals for the Second Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/7"},"facts_of_the_case":"\u003Cp\u003EMarcel and Lucky Brand are competitors in the apparel industry, and this dispute arises over Marcel\u2019s allegation that Lucky Brand is infringing on its \u201cGet Lucky\u201d trademark through its use of \u201cLucky\u201d on its merchandise in violation of an injunction entered in an earlier action between the two parties.\u003C\/p\u003E\n\u003Cp\u003EIn 2003, the two parties entered into a settlement agreement to resolve a trademark dispute in which Lucky Brand agreed not to use \u201cGet Lucky\u201d and Marcel agreed to release certain claims it might have in the future arising out of its trademarks. The two parties contest the scope of Marcel\u2019s release of claims, with Marcel contending that it only released claims as to infringement that occurred prior to the 2003 execution of the agreement and Lucky Brand arguing that it released any future claim Marcel may have in relation to any trademark registered prior to the execution of the agreement. Further litigation ensued.\u003C\/p\u003E\n\u003Cp\u003EIn litigation between the two parties over substantially the same trademark disputes, Lucky Brand argued for its interpretation of the 2003 settlement agreement. It moved to dismiss on the basis that because the marks at issue were registered prior to the settlement agreement, Marcel released any claim alleging infringement of those marks. The district court denied the motion, concluding that it was premature to determine which claims were subject to release in the 2001 agreement. However, the district court noted that Lucky Brand was \u201cfree to raise the issue . . . again after the record is more fully developed.\u201d Lucky Brand raised the defense again in its answer and as an affirmative defense, but not again during the litigation. After a jury trial, the district court entered judgment for Marcel, declaring that Lucky Brand infringed on Marcel\u2019s \u201cGet Lucky\u201d trademark and enjoining Lucky Brand from using the \u201cGet Lucky\u201d mark. Lucky Brand did not appeal.\u003C\/p\u003E\n\u003Cp\u003EIn 2011, Marcel filed another lawsuit against Lucky Brand alleging that the latter continued to use \u201cLucky Brand\u201d mark after the injunction. Lucky Brand moved for summary judgment on the basis that Marcel\u2019s claims were precluded by res judicata in light of the final disposition of the previous action. The district court agreed, but the Second Circuit reversed, finding the allegedly barred claims \u201ccould not possibly have been sued upon in the previous case.\u201d On remand, Marcel filed a second amended complaint, which Lucky Brand moved to dismiss on the sole basis that the 2001 agreement barred Marcel\u2019s claims. The district court granted the motion and rejected Marcel\u2019s argument that Lucky Brand was precluded from raising those claims.\u003C\/p\u003E\n\u003Cp\u003EThe Second Circuit vacated, concluding that the doctrine of claim preclusion (or more precisely, defense preclusion) applied in situations as this one and that it barred Lucky Brand from invoking its release defense again in this action.\u003C\/p\u003E\n","question":"\u003Cp\u003EWhen a plaintiff asserts new claims, can federal preclusion principles bar a defendant from raising defenses that were not actually litigated and resolved in any prior case between the parties?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EBecause the trademark action at issue challenged different conduct\u2014and raised different claims\u2014from an earlier action between the parties, Marcel cannot preclude Lucky Brand from raising new defenses, including a defense that Lucky Brand failed to press fully in the earlier suit. Justice Sonia Sotomayor authored the opinion for the unanimous Court.\u003C\/p\u003E\n\u003Cp\u003E\u201cRes judicata\u201d is a term that comprises two doctrines of preclusion. First, issue preclusion (also known as \u201ccollateral estoppel\u201d) precludes a party from litigating an issue actually decided in a prior case and necessary to the judgment. Second, claim preclusion (also known as \u201cres judicata\u201d) prevents parties from raising claims that could have been raised and decided in a prior action, even if they were not actually litigated. Courts define the \u201csame claim\u201d as meaning the claims arise from the same transaction, or involve a \u201ccommon nucleus of operative facts.\u201d In this case, the Court found the two suits \u201cwere grounded on different conduct, involving different marks, occurring at different times.\u201d The 2005 claims arose from Lucky Brand\u2019s alleged use of \u201cGet Lucky,\u201d while the 2011 claims arose from other alleged uses of the word \u201cLucky,\u201d not the phrase \u201cGet Lucky.\u201d As such, they did not share a \u201ccommon nucleus of operative facts,\u201d and claim preclusion therefore cannot apply.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":20721,"name":"Dale M. Cendali","href":"https:\/\/api.oyez.org\/people\/dale_m_cendali","view_count":0,"last_name":"Cendali","roles":null,"thumbnail":null,"length_of_service":0,"identifier":"dale_m_cendali"},"advocate_description":"for the petitioners","href":"https:\/\/api.oyez.org\/case_advocate\/case_advocate\/22817"},{"advocate":{"ID":62609,"name":"Michael B. 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