Fl Court Orders Auction Sale of Tabacalera Trademark to Satisfy Cuban Cigar's Judgment Lien

Holding:

In this controversy relating to the "Popular" and "Tabacalera Popular Cubana" design and marks, the U.S. District Court for the Southern District of Florida ruled that a creditor could cause the seizure and auction sale of a debtor's trademarks to satisfy the latter's judgment debt. Here, the district court determined that defendants owned the marks in dispute and that plaintiffs Cuban Cigar Brands, N.V. and Max Rohr were able to comply with the requirement of Florida statute that as judgment holders, they must file an affidavit stating that they hold an unsatisfied judgment. With regard to the due process rights of the third-party trademarks licensee, the district court determined there was nothing in the record to indicate that any of the licensee's property rights would be directly altered if the trademark were to be seized and sold to the highest bidder at auction. Significantly, under the license agreement, defendants were entitled to sell or transfer their ownership rights in the trademarks without notifying the licensee in advance or obtaining its consent. On such basis, the district ordered the U.S. Marshall to seize the trademarks-at-issue for sale at a judicial auction to be applied toward the satisfaction of defendants' judgment debt.

Detailed Summary:

Presented before the district court was plaintiffs’ motion for final summary judgment. After defendants failed to file a response within the time provided, plaintiffs filed a separate motion for final summary judgment by default. Order, p. 1.

By way of background, on November 26, 2003, plaintiffs obtained a final judgment against defendants in the amount of $900,000 . Id. Plaintiffs obtained Judgment Lien Certificates and unsatisfied Writs of Execution in recognition of the judgment.  Plaintiffs filed the instant motion for summary judgment based on their argument that, as a matter of law, defendants’ trademarks must be seized and sold in order…

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