Square D Co. v. Elec. Soln’s, Inc., No. 07 C 6294, Slip Op. (N.D. Ill., Jul. 22, 2008) (Moran, Sen. J.).
Judge Moran granted plaintiffs’ motion to reopen discovery and compel production of certain documents, but tabled plaintiff’s motion for sanctions. Plaintiffs alleged that defendants were selling counterfeit electrical products using plaintiffs’ trademarks. The parties entered an agreed preliminary injunction pursuant to which defendant agreed not to sell any products with plaintiffs’ trademarks, and to plaintiffs’ inspection of defendants’ inventory on or before February 29, 2008, unless the parties agreed to a later date.
When plaintiffs performed their inspection in April 2008, defendants had almost no inventory, had continued to sell trademarked products, and had few sales records. Defendants countered that they believed they were free to continue selling after February 29 because no injunctions had occurred as of that date. The Court ordered production of sales and other documents, and withheld judgment on sanctions for any violation of the preliminary injunction.
Practice Tip: When agreeing to an injunction, or any joint document, make sure the language is clear as to the parties’ obligations and that the parties agree on them.