United Ind. Corp. v. Clorox Co. , 140 F.3d 1175 ( 1998 )


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  •                           United States Court of Appeals
    FOR THE EIGHTH CIRCUIT
    ___________
    No. 97-3492
    ___________
    United Industries Corporation,          *
    a corporation,                          *
    *
    Appellee,                  *   Appeal from the United States
    *   District Court for the
    v.                                *   Eastern District of Missouri.
    *
    The Clorox Company,                     *
    *
    Appellant.                 *
    ___________
    Submitted: January 16, 1998
    Filed: April 13, 1998
    ___________
    Before BOWMAN, WOLLMAN, and HANSEN, Circuit Judges.
    ___________
    WOLLMAN, Circuit Judge.
    The Clorox Company appeals from the district court’s1 denial of its motion for
    preliminary injunctive relief brought within the context of its counterclaim against
    United Industries Corporation for false advertising under section 43(a) of the Lanham
    Act, 15 U.S.C. § 1125(a). We affirm.
    1
    The Honorable Charles A. Shaw, United States District Judge for the Eastern
    District of Missouri.
    I.
    Clorox and United Industries are competing producers of roach bait insecticide
    products.2 Clorox manufactures and sells Combat, the top-selling brand of roach bait,
    while United Industries manufactures and sells the Maxattrax brand of roach bait, a
    small and relatively new participant in this market. United Industries initiated this
    action against Clorox, seeking a declaratory judgment that the packaging of its
    Maxattrax product, which predominantly asserts that it “Kills Roaches in 24 Hours,”
    did not constitute false advertising or unfair competition under the Lanham Act. In
    response, Clorox moved to dismiss the complaint, contending that no actual case or
    controversy existed between the two parties regarding the packaging claims. Shortly
    thereafter, however, Clorox withdrew its motion to dismiss and filed an answer and
    counterclaim, which subsequently was amended. Clorox’s amended counterclaim
    alleged, primarily, that a Maxattrax television commercial that United Industries had
    recently released for broadcast constituted false, deceptive, and misleading advertising
    in violation of section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a)(1)(B).3
    The commercial at issue, entitled “Side by Side” by the advertising firm that
    produced it, depicts a split-screen view of two roach bait products on two kitchen
    countertops. The lighting is dark. On the left, one sees the Maxattrax box; on the right,
    a generic “Roach Bait” box that is vaguely similar to the packaging of the Combat
    2
    As explained by the district court: “Roach bait products . . . consist of small
    plastic bait stations which contain roach-attracting food ingredient agents and
    insecticide. They are designed with openings, which permit roaches to enter the
    station, to ingest or come into contact with the insecticide, and then to exit the unit and
    die.” Findings of Fact, Conclusions of Law and Order at 1-2.
    3
    Clorox’s amended answer and counterclaim also alleged unfair competition and
    injurious falsehood claims under the common law. The district court did not address
    these claims in its memorandum opinion and Clorox did not raise them in its brief or
    during oral argument. Therefore, we will not consider them for purposes of this appeal.
    -2-
    brand sold by Clorox. An announcer asks the question: “Can you guess which bait kills
    roaches in 24 hours?” The lights then come up as the camera pans beyond the boxes
    to reveal a clean, calm, pristine kitchen, uninhabited by roaches, on the Maxattrax side.
    On the other side, the kitchen is in a chaotic state: cupboards and drawers are opening,
    items on the counter are turning over, paper towels are spinning off the dispenser, a
    spice rack is convulsing and losing its spices, all the apparent result of a major roach
    infestation. At the same time, the message “Based on lab tests” appears in small print
    at the bottom of the screen. The two roach bait boxes then reappear on the split-screen,
    and several computer-animated roaches on the “Roach Bait” side appear to kick over
    the generic box and dance gleefully upon it. The final visual is of the Maxattrax box
    only, over which the announcer concludes, “To kill roaches in 24 hours, it’s hot-shot
    Maxattrax. Maxattrax, it’s the no-wait roach bait.” The final phrase is also displayed
    in print on the screen. The entire commercial runs fifteen seconds.
    Clorox filed a motion for a preliminary injunction against this commercial. After
    expedited discovery and a two-day hearing, the district court denied the motion.
    II.
    In deciding a motion for a preliminary injunction, district courts are instructed to
    consider what have come to be known as the Dataphase factors:
    (1)    The probability of success on the merits;
    (2)    The threat of irreparable harm to the movant;
    (3)    The balance between this harm and the injury that granting the
    injunction will inflict on other interested parties; and
    (4)    Whether the issuance of an injunction is in the public interest.
    Sanborn Mfg. Co., Inc. v. Campbell Hausfeld/Scott Fetzer Co., 
    997 F.2d 484
    , 485-86
    (8th Cir. 1993) (citing Dataphase Sys., Inc. v. C L Sys., Inc., 
    640 F.2d 109
    , 114 (8th
    -3-
    Cir. 1981) (en banc)); see also Minnesota Mining and Mfg. Co. v. Rauh Rubber, Inc.,
    
    130 F.3d 1305
    , 1307 (8th Cir. 1997). No single factor in itself is dispositive; rather,
    each factor must be considered to determine whether the balance of equities weighs
    toward granting the injunction. See 
    Sanborn, 997 F.2d at 486
    ; Calvin Klein Cosmetics
    Corp. v. Lenox Lab., Inc., 
    815 F.2d 500
    , 503 (8th Cir. 1987).
    We have noted that by enacting the Lanham Act, Congress apparently intended
    to encourage competitors to seek injunctions as a method of combating false
    advertising, and, in such cases that ultimately prove to have merit, injunctive relief is not
    to be issued reluctantly. See Black Hills Jewelry Mfg. Co. v. Gold Rush, Inc., 
    633 F.2d 746
    , 753 n.7 (8th Cir. 1980). With regard to a preliminary injunction, however, the
    burden on the movant is heavy, in particular where, as here, “granting the preliminary
    injunction will give [the movant] substantially the relief it would obtain after a trial on
    the merits.” 
    Sanborn, 997 F.2d at 486
    (quoting Dakota Indus., Inc. v. Ever Best Ltd.,
    
    944 F.2d 438
    , 440 (8th Cir. 1991)). Caution must therefore be exercised in a court’s
    deliberation, and “the essential inquiry in weighing the propriety of issuing a preliminary
    injunction is whether the balance of other factors tips decidedly toward the movant and
    the movant has also raised questions so serious and difficult as to call for more
    deliberate investigation.” General Mills, Inc. v. Kellogg Co., 
    824 F.2d 622
    , 624-25 (8th
    Cir. 1987).
    A district court has broad discretion when ruling on requests for preliminary
    injunctions, and we will reverse only for clearly erroneous factual determinations, an
    error of law, or an abuse of that discretion. See 
    Sanborn, 997 F.2d at 486
    (citing Calvin
    
    Klein, 815 F.2d at 503
    ). A district court’s finding is “clearly erroneous” when, although
    evidence may exist to support it, upon review of the entire record we are left with the
    definite and firm conviction that error has occurred. See Prufrock Ltd., Inc. v. Lasater,
    
    781 F.2d 129
    , 133 (8th Cir. 1986); Anderson v. City of Bessemer City, 
    470 U.S. 564
    ,
    573-74 (1985). This deferential standard of review “rests upon the unique opportunity
    afforded the trial court judge to evaluate the credibility of witnesses and
    -4-
    to weigh the evidence.” Inwood Lab., Inc. v. Ives Lab., Inc., 
    456 U.S. 844
    , 855 (1982).
    A.
    In our analysis of the Dataphase factors, we begin by assessing the probability
    of Clorox’s ultimate success on the merits. At the early stage of a preliminary
    injunction motion, the speculative nature of this particular inquiry militates against any
    wooden or mathematical application of the test. See Calvin 
    Klein, 815 F.2d at 503
    .
    Instead, “a court should flexibly weigh the case’s particular circumstances to determine
    whether the balance of equities so favors the movant that justice requires the court to
    intervene to preserve the status quo until the merits are determined.” 
    Id. (quoting Dataphase,
    640 F.2d at 113). Clorox asserts Lanham Act violations and seeks,
    primarily, permanent injunctive relief against the alleged false claims contained in the
    Maxattrax “Side by Side” commercial.
    Section 43(a) of the Lanham Act
    The Lanham Act was intended, in part, to protect persons engaged in commerce
    against false advertising and unfair competition. See Two Pesos, Inc. v. Taco Cabana,
    Inc., 
    505 U.S. 763
    , 767-68 (1992) (quoting 15 U.S.C. § 1127); 3 J. Thomas McCarthy,
    McCarthy on Trademarks and Unfair Competition § 27:25 at 27-40 (West Group
    1997). In particular, the Act prohibits commercial advertising or promotion that
    misrepresents the nature, characteristics, qualities, or geographic origin of the
    advertiser’s or another person’s goods, services, or commercial activities. See Rhone-
    Poulenc Rorer Pharm., Inc. v. Marion Merrell Dow, Inc., 
    93 F.3d 511
    , 514 (8th Cir.
    1996) (citing 15 U.S.C. § 1125(a)(1)(B)); 
    Sanborn, 997 F.2d at 486
    .4
    4
    The text of section 43(a) of the Lanham Act, codified at 15 U.S.C. § 1125(a),
    provides in pertinent part:
    (1) Any person who, on or in connection with any goods or services,
    -5-
    To establish a claim under the false or deceptive advertising prong of the Lanham
    Act, a plaintiff must prove: (1) a false statement of fact by the defendant in a
    commercial advertisement about its own or another’s product; (2) the statement actually
    deceived or has the tendency to deceive a substantial segment of its audience; (3) the
    deception is material, in that it is likely to influence the purchasing decision; (4) the
    defendant caused its false statement to enter interstate commerce; and (5) the plaintiff
    has been or is likely to be injured as a result of the false statement, either by direct
    diversion of sales from itself to defendant or by a loss of goodwill associated with its
    products. See Southland Sod Farms v. Stover Seed Co., 
    108 F.3d 1134
    , 1139 (9th Cir.
    1997); Johnson & Johnson-Merck Consumer Pharm. Co. v. Rhone-Poulenc Rorer
    Pharm., Inc., 
    19 F.3d 125
    , 129 (3d Cir. 1994). In addition, to recover money damages
    under the Act, a “[p]laintiff must prove both actual damages and a causal link between
    defendant’s violation and those damages.” 
    Rhone-Poulenc, 93 F.3d at 515
    .
    The false statement necessary to establish a Lanham Act violation generally falls
    into one of two categories: (1) commercial claims that are literally false as a factual
    matter; and (2) claims that may be literally true or ambiguous but which implicitly
    convey a false impression, are misleading in context, or likely to deceive consumers.
    See 
    Southland, 108 F.3d at 1139
    ; National Basketball Ass’n v. Motorola, Inc., 105
    or any container for goods, uses in commerce any word, term, name,
    symbol, or device, or any combination thereof, or any false designation
    of origin, false or misleading description of fact, or false or misleading
    representation of fact, which—
    ....
    (B) in commercial advertising or promotion, misrepresents the nature,
    characteristics, qualities, or geographic origin of his or her or another
    person’s goods, services, or commercial activities,
    shall be liable in a civil action by any person who believes that he or she
    is or is likely to be damaged by such act.
    -6-
    F.3d 841, 855 (2d Cir. 1997); Abbott Lab. v. Mead Johnson & Co., 
    971 F.2d 6
    , 13 (7th
    Cir. 1992). Many claims will actually fall into a third category, generally known as
    “puffery” or “puffing.” Puffery is “exaggerated advertising, blustering, and boasting
    upon which no reasonable buyer would rely and is not actionable under § 43(a).”
    
    Southland, 108 F.3d at 1145
    ; see also Castrol Inc. v. Pennzoil Co., 
    987 F.2d 939
    , 945
    (3d Cir. 1993). Nonactionable puffery includes representations of product superiority
    that are vague or highly subjective. See 
    Southland, 108 F.3d at 1145
    ; Cook, Perkiss &
    Liehe, Inc. v. Northern California Collection Serv., Inc., 
    911 F.2d 242
    , 246 (9th Cir.
    1990) (advertising that merely states in general terms that one product is superior is not
    actionable). However, false descriptions of specific or absolute characteristics of a
    product and specific, measurable claims of product superiority based on product testing
    are not puffery and are actionable. See 
    Southland, 108 F.3d at 1145
    ; 
    Castrol, 987 F.2d at 945
    .
    1.   Literally false claims
    If a plaintiff proves that a challenged claim is literally false, a court may grant
    relief without considering whether the buying public was actually misled; actual
    consumer confusion need not be proved. See 
    Rhone-Poulenc, 93 F.3d at 516
    ; Johnson
    & 
    Johnson-Merck, 19 F.3d at 129
    ; McNeil-P.C.C., Inc. v. Bristol-Myers Squibb Co.,
    
    938 F.2d 1544
    , 1549 (2d Cir. 1991) (where advertisement is shown to be literally false,
    court may enjoin it without reference to its impact on consumers). In assessing whether
    an advertisement is literally false, a court must analyze the message conveyed within its
    full context. See 
    Rhone-Poulenc, 93 F.3d at 516
    ; 
    Southland, 108 F.3d at 1139
    . In some
    circumstances, even a visual image, or a visual image combined with an audio
    component, may be literally false:
    We find, therefore, that the squeezing-pouring sequence in the Jenner
    commercial is false on its face. The visual component of the ad makes an
    explicit representation that Premium Pack is produced by squeezing
    -7-
    oranges and pouring the freshly-squeezed juice directly into the carton.
    This is not a true representation of how the product is prepared. Premium
    Pack juice is heated and sometimes frozen prior to packaging.
    Coca-Cola Co. v. Tropicana Products, Inc., 
    690 F.2d 312
    , 318 (2d Cir. 1982); see also
    
    Rhone-Poulenc, 93 F.3d at 516
    (drug manufacturer’s advertisements featuring images
    such as two similar gasoline pumps or airline tickets with dramatically different prices,
    accompanied by slogan, “Which one would you choose?” was literally false message
    that competing drugs could be indiscriminately substituted). The greater the degree to
    which a message relies upon the viewer or consumer to integrate its components and
    draw the apparent conclusion, however, the less likely it is that a finding of literal falsity
    will be supported. Commercial claims that are implicit, attenuated, or merely suggestive
    usually cannot fairly be characterized as literally false.
    The district court determined that the Maxattrax commercial conveyed an explicit
    message that the product killed roaches in 24 hours and found that this message was
    literally true. The court concluded that scientific testing performed both by United
    Industries and Clorox sufficiently demonstrated that Maxattrax, which contains the fast-
    acting nerve toxin known as chlorpyrifos or Dursban, will actually kill a roach within
    24 hours of its coming into contact with the product. In response, Clorox argues that
    the district court erroneously “ignored the explicit visual statements in United’s
    advertising that, as a matter of law, combine with its express audio statements to
    determine its literal meaning.” Brief for Appellant at 16. Clorox contends that the
    Maxattrax commercial conveyed three additional explicit messages that are literally
    false: (1) that Maxattrax controls roach infestations in consumers’ homes within 24
    hours; (2) that Combat and other roach baits are entirely ineffective in consumers’
    homes within 24 hours; and (3) that Maxattrax provides superior performance in
    consumers’ homes in comparison to Combat and other roach baits.
    -8-
    Our review of the record satisfies us that the district court’s determination that
    the commercial was literally true is not clearly erroneous. The court was clearly correct
    in its assessment that the audio and print components of the advertisement are literally
    true. The scientific evidence and expert testimony contained in the record satisfactorily
    established that Maxattrax roach bait “kills roaches in 24 hours.” Clorox protests that
    this statement is literally true only in circumstances where a particular roach actually
    comes into the contact with the product. This complaint rings hollow. The requirement
    that roaches must come into contact with the poison for it to be effective is the central
    premise of the roach bait line of products. We will not presume the average consumer
    to be incapable of comprehending the essential nature of a roach trap.
    Similarly, we conclude that the district court did not err in determining that the
    Maxattrax commercial did not convey explicit visual messages that were literally false.
    The depiction of a Maxattrax box in a pristine, roach-free kitchen, coupled with the
    depiction of a kitchen in disarray in which animated roaches happily dance about on a
    generic roach trap, is not sufficient, in our view, to constitute literal falsity in the manner
    in which it was presented. When the context is considered as a whole, moreover, the
    audio component of the advertisement, emphasizing only the 24-hour time frame and
    quick roach kill with no mention of complete infestation control, fosters ambiguity
    regarding the intended message and renders the commercial much more susceptible to
    differing, plausible interpretations. Thus, in our view, the district court’s finding that
    the commercial did not explicitly convey a literally false message that Maxattrax will
    completely control a home roach infestation within 24 hours is not clearly erroneous.
    Clorox also contends that the commercial conveys an explicit message of
    comparative superiority that is literally false. We have recently distinguished between
    two types of comparative advertising claims brought under the Lanham Act: (1) “my
    product is better than yours” and (2) “tests prove that my product is better than yours.”
    
    Rhone-Poulenc, 93 F.3d at 514
    (emphasis in original). When challenging a claim of
    -9-
    superiority that does not make express reference to testing, a plaintiff must prove that
    the defendant’s claim of superiority is actually false, not simply unproven or
    unsubstantiated. See 
    id. Under a
    “tests prove” claim, in which a defendant has
    buttressed a claim of superiority by attributing it to the results of scientific testing, a
    plaintiff must prove only “that the tests [relied upon] were not sufficiently reliable to
    permit one to conclude with reasonable certainty that they established the proposition
    for which they were cited.” 
    Id. at 514-15
    (quoting Castrol, Inc. v. Quaker State Corp.,
    
    977 F.2d 57
    , 62-63 (2d Cir. 1992)). However, “[t]o ensure vigorous competition and
    to protect legitimate commercial speech, courts applying this standard should give
    advertisers a fair amount of leeway, at least in the absence of a clear intent to deceive
    or substantial consumer confusion.” 
    Rhone-Poulenc, 93 F.3d at 515
    .
    The Maxattrax commercial indicates in small print at the bottom of the screen that
    its implied answer to the posed question, “Can you guess which bait kills roaches in 24
    hours?” is, “Based on lab tests.” In order for this claim to be considered literally false,
    then, Clorox must establish that the tests to which the commercial referred were not
    sufficiently reliable to support its claims with reasonable certainty. See 
    id. at 514-15.
    The district court determined that the scientific research provided by United Industries
    was reliable and supported the commercial’s claims. We agree with this conclusion.
    Laboratory testing indicates that the toxin contained in Maxattrax kills within 24 hours
    those roaches that come into contact with it. Some other roach bait products will not
    kill a roach within that interval and, in fact, are not even intended to do so.5
    5
    Clorox’s Combat product, for example, contains an insecticide called
    hydramethylnon, a slow-acting metabolic poison that gradually inhibits the ability of
    the cockroach to move, yet has the advantage of being more readily transmitted to other
    roaches back in the “nest” who have not come into direct contact with the roach bait
    station. See S.C. Johnson & Son, Inc. v. Clorox Co., 
    930 F. Supp. 753
    , 757-58
    (E.D.N.Y. 1996) (discussing relative merits of hydramethylnon versus
    chlorpyrifos/Dursban).
    -10-
    Any additional messages in the Maxattrax commercial perceived by Clorox,
    visual or otherwise, are not sufficiently explicit or unambiguous so as to constitute
    specific false claims of a literal nature. Thus, we cannot say that the court committed
    clear error in its determinations regarding the scope of the commercial’s explicit claims
    of superiority (that it kills roaches within 24 of hours and that a generic competitor does
    not), or in finding that claim to be literally true. See L & F Products, a Div. of Sterling
    Winthrop, Inc. v. Proctor & Gamble Co., 
    45 F.3d 709
    , 712 (2d Cir. 1995) (district
    court’s determination with respect to facial falsity was not clearly erroneous).6
    2.   Implicitly false or misleading claims
    Statements that are literally true or ambiguous but which nevertheless have a
    tendency to mislead or deceive the consumer are actionable under the Lanham Act. See
    
    Southland, 108 F.3d at 1140
    ; Sandoz Pharm. Corp. v. Richardson-Vicks, Inc., 
    902 F.2d 222
    , 228-29 (3d Cir. 1990); American Home Products Corp. v. Johnson & Johnson, 
    577 F.2d 160
    , 165 (2d Cir. 1978). Where a commercial claim is not literally false but is
    misleading in context, proof that the advertising actually conveyed the implied message
    and thereby deceived a significant potion of the recipients becomes critical. See
    William H. Morris Co. v. Group W, Inc., 
    66 F.3d 255
    , 258 (9th Cir. 1995) (per curiam);
    Johnson & Johnson * Merck Consumer Pharm. Co. v. Smithkline Beecham Corp., 
    960 F.2d 294
    , 297-98 (2d Cir. 1992).
    If a plaintiff does not prove the claim to be literally false, he must prove
    that it is deceptive or misleading, which depends on the message that is
    6
    Clorox places reliance on S.C. 
    Johnson, 930 F. Supp. at 753
    , in which a district
    court issued a preliminary injunction against a Clorox commercial that claimed “testing
    proves” that its product killed 98 percent of roaches, while its competitors’ products
    killed only 60 percent. In that case, however, the court found that these numeric,
    measurable claims, expressly attributed to scientific testing, were unsubstantiated and
    therefore literally false. See 
    id. at 782-83.
    -11-
    conveyed to consumers. Public reaction is the measure of a commercial’s
    impact. As the district court noted, the success of the claim usually turns
    on the persuasiveness of a consumer survey.
    Johnson & 
    Johnson-Merck, 19 F.3d at 129
    -30 (internal citations omitted).
    In affirming a jury verdict awarding damages under a Lanham Act claim, we
    recently held that a manufacturer was not required to provide consumer surveys or
    reaction tests in order to prove entitlement to damages in a false comparative advertising
    action against its competitor where the jury found that the competitor had violated the
    Lanham Act willfully and in bad faith. See Porous Media Corp. v. Pall Corp., 
    110 F.3d 1329
    , 1337 (8th Cir. 1997). Where, as here, there has been no finding of a willful
    violation or an intent to deceive, evidence of consumer impact is essential. See William
    H. 
    Morris, 66 F.3d at 258-59
    ; American Tel. and Tel. Co. v. Winback and Conserve
    Program, Inc., 
    42 F.3d 1421
    , 1443 (3d Cir. 1994); Johnson & 
    Johnson-Merck, 19 F.3d at 129
    -30; Abbott 
    Lab., 971 F.2d at 14
    ; Smithkline 
    Beecham, 960 F.2d at 297-98
    ;
    
    Coca-Cola, 690 F.2d at 317
    . Therefore, unless a commercial claim is literally false, or
    a trier of fact has determined that a competitor acted willfully with intent to deceive or
    in bad faith, a party seeking relief under this section of the Lanham Act bears the
    ultimate burden of proving actual deception by using reliable consumer or market
    research. See Smithkline 
    Beecham, 960 F.2d at 297
    (“It is not for the judge to
    determine, based solely upon his or her intuitive reaction, whether the advertisement is
    deceptive.”); 
    AT&T, 42 F.3d at 1443
    (quoting Sandoz , 902 F.2d at 228-29) (“[I]t
    cannot obtain relief by arguing how consumers could react; it must show how
    consumers actually do react.”).
    At the preliminary injunction stage, however, full-blown consumer surveys or
    market research are not an absolute prerequisite, and expert testimony or other evidence
    may at times be sufficient to obtain preliminary injunctive relief in cases involving
    implicitly false or misleading claims. See 
    Abbott, 971 F.2d at 15
    ; 3
    -12-
    McCarthy § 27:55 at 27-81 (“However, on a motion for a preliminary injunction, a
    survey is not always necessary and it is sufficient if plaintiff introduces expert testimony
    or any other evidence showing that a significant number of consumers received the
    claimed message from the advertisement.”).
    Clorox contends that when one assesses the comparative visuals and implicit
    messages in the commercial, a consumer might be misled to construe them as a claim
    that Maxattrax will completely control an infestation by killing all of the roaches in
    one’s home within 24 hours, while its competitors will fail to do the same. In fact,
    Maxattrax will kill only those roaches which come into contact with the product; actual
    control of a roach problem may take several weeks. Whether one accepts the district
    court’s more literal interpretation of the commercial’s message or Clorox’s proposed
    construction, however, is highly dependent upon context and inference, and Clorox’s
    view is unsupported at this point by expert testimony, surveys, or consumer reaction
    evidence of any kind. It is, in other words, a classic question of fact, the resolution of
    which we will not disturb absent a showing of clear error by the district court. Clorox
    has not made such a showing.
    In sum, then, the district court did not err in concluding that Clorox had not
    shown a likelihood of success on the merits of the claim.
    B.
    The remaining Dataphase factors do not tip the balance of equities decidedly in
    favor of Clorox. We have stated that the failure to demonstrate the threat of irreparable
    harm is, by itself, a sufficient ground upon which to deny a preliminary injunction. See
    Adam-Mellang v. Apartment Search, Inc., 
    96 F.3d 297
    , 299 (8th Cir. 1996). When
    injunctive relief is sought under the Lanham Act, the finding of a tendency to deceive
    satisfies the requisite showing of irreparable harm. See Black Hills 
    Jewelry, 633 F.2d at 753
    (“To obtain an injunction under section 43(a) appellees need only show that the
    -13-
    falsities complained of had a tendency to deceive.”); McNeilab, Inc. v. American Home
    Products Corp., 
    848 F.2d 34
    , 38 (2d Cir. 1988) (where challenged advertisement
    directly, but falsely, proclaims superiority of defendant’s product over plaintiff’s,
    irreparable harm may be presumed). Absent such a showing, however, irreparable harm
    cannot be presumed where, as here, plaintiff has not established any prospect of success
    upon the merits. See 
    Sanborn, 997 F.2d at 489
    ; Johnson & Johnson v. Carter-Wallace,
    Inc., 
    631 F.2d 186
    , 192 (2d Cir. 1980) (“While proof of actual diversion of sales is not
    required for a § 43(a) injunction to issue, proof that the advertising complained of is in
    fact false is essential.”). Clorox has not otherwise sufficiently demonstrated the threat
    of irreparable injury so as to tip this factor in its favor.
    The district court did not make an explicit finding concerning the balance of harm
    to Clorox stemming from the commercial and the injury to United Industries that would
    result from an injunction. In light of the district court’s conclusion that Clorox had
    failed to demonstrate a probability of ultimate success, the possibility that it will suffer
    any harm from the continuing airing of the commercial is highly speculative and
    therefore does not serve to tip the balance of equities in Clorox’s favor. See generally
    
    Sanborn, 997 F.2d at 489
    -90.
    Finally, “[a]lthough the public interest favors enjoining false statements,” 
    id. at 490,
    absent a more substantial showing that Clorox has a viable claim, this factor
    likewise does not tilt the equities toward granting preliminary injunctive relief. See 
    id. Therefore, because
    we believe that it committed no clear error in its factual findings or
    legal conclusions, we conclude that the district court did not abuse its broad discretion
    in denying Clorox’s motion for preliminary injunction.
    III.
    Additionally, Clorox challenges various statements made by United Industries
    regarding the alleged effectiveness and superiority of Maxattrax in its promotional
    -14-
    materials distributed to retailers, some of which specifically referred to Combat. Such
    materials may properly be the basis of a claim under section 43(a) of the Lanham Act.
    See, e.g., Seven-Up Co. v. Coca-Cola Co., 
    86 F.3d 1379
    , 1382-83 (5th Cir. 1996). The
    district court held that Clorox was not entitled to injunctive relief regarding these
    materials because it had never alleged that such materials were violative of the Lanham
    Act. See Findings of Fact, Conclusions of Law and Order at 7-8. Clorox sought post-
    hearing leave to amend, nunc pro tunc, its counterclaim and motion for preliminary
    injunction to include claims based upon allegedly false statements contained within the
    promotional literature, which the district court apparently denied.
    Although leave to amend is to be freely granted, a district court’s denial of such
    leave is reviewed for abuse of discretion. See Springdale Educ. Ass’n v. Springdale
    Sch. Dist., 
    133 F.3d 649
    , 653 (8th Cir. 1998); In re NationsMart Corp. Sec. Litig., 
    130 F.3d 309
    , 322 (8th Cir. 1997). We find no abuse of discretion in the district court’s
    denial of leave to amend. Whether these materials should be considered during a trial
    on the merits for permanent injunctive relief is a matter to be addressed by the district
    court.
    The order denying preliminary injunctive relief is affirmed.
    A true copy.
    Attest:
    CLERK, U.S. COURT OF APPEALS, EIGHTH CIRCUIT.
    -15-
    

Document Info

Docket Number: 97-3492

Citation Numbers: 140 F.3d 1175

Filed Date: 4/13/1998

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (32)

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