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Home Court filings Blueacorn Beringer Nced 187990 Memorandum in Support regarding 62 MOTION to Amend/Correct 57 Scheduling Order filed by…

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Memorandum in Support regarding 62 MOTION to Amend/Correct 57 Scheduling Order filed by… — Blueacorn Beringer (Dkt. 63)

No. 5:21-cv-00251-BO · Doc. 63 · Docket on CourtListener

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                      IN THE UNITED STATES DISTRICT COURT
                  FOR THE EASTERN DISTRICT OF NORTH CAROLINA
                                 WESTERN DIVISION
                           Civil Action No. 5:21-CV-251-BO

 BERINGER COMMERCE, INC. d/b/a
 BLUE ACORN iCi,

                   Plaintiff,

                                v.                MEMORANDUM OF LAW IN SUPPORT
                                                  OF PLAINTIFF’S MOTION TO AMEND
 FIN CAP, INC. d/b/a “BLUEACORN.CO,”                    SCHEDULING ORDER
 BLUE ACORN PPP, LLC, and BLUE OAK
 FOREST, LLC,

                     Defendants.



       Plaintiff BERINGER COMMERCE, INC. d/b/a BLUE ACORN iCi, (“Blue Acorn iCi”)

by and through undersigned counsel, and pursuant to Rules 16(b)(4) and 26(f) of the Federal Rules

of Civil Procedure and Local Civil Rule 26.1(e)(2), hereby submits this Memorandum of Law in

Support of its unopposed Motion to Amend the Scheduling Order [DE-57].

                NATURE OF CASE AND RELEVANT FACTUAL BACKGROUND

       This trademark and copyright infringement lawsuit was originally filed on June 10, 2021.

After this Court heard a series of motions related to preliminary injunctive relief, and entered an

order denying the requested preliminary injunction, the parties engaged in good faith settlement

discussions, seeking to resolve this matter prior to engaging in formal discovery and discussing

the possibility of early mediation. Specifically, throughout the late summer and fall of 2021, the

parties attempted to resolve this case through negotiation of a co-existence agreement, which

would allow Defendants to operate the “Blue Acorn” brand and logo until the termination of the

PPP loan forgiveness program under specified terms and conditions. The parties engaged in



        Case 5:21-cv-00251-BO          Document 63       Filed 01/06/22      Page 1 of 5
negotiations in the late summer and fall of 2021 until they broke down in late November 2021.

Specifically, in early December 2021, Counsel for Defendants indicated that Defendants were not

interested in continuing with negotiations until it received responses to discovery.

        Each of the parties has served a set of written discovery to the other party, with responses

currenting pending. The parties need additional time following the exchange of written discovery

and documents to take depositions, complete all fact and expert discovery, and re-engage in

potential settlement discussions.

        Additionally, several significant staffing changes have occurred and require a change in

counsel for Plaintiff.

        First, effective January 1, 2021, Forrest Firm, P.C. merged with Michael Best & Friedrich,

LLP (“Michael Best”), resulting in several significant key staffing changes. Co-lead counsel, Beth

A. Stanfield, as well as Laura K. Greene have joined Michael Best’s Labor and Employment

Practice Group and will no longer be operating a commercial litigation practice.

        Second, Co-lead Counsel, Thomas Babel, accepted a position with an outside firm Davis,

Hartman & Wright, PLLC and separated from Forrest Firm, PC a few weeks before the above-

referenced merger occurred. Plaintiff elected to retain representation with Michael Best, resulting

in Mr. Babel’s need to withdraw from this matter.

        Since these events occurred, Ms. Stanfield has engaged in significant communications with

Michael Best’s commercial litigation team to ensure that the staffing transition is as seamless as

possible. However, due to the breakdown in early resolution efforts and the complete change in

counsel, the undersigned filed the instant Motion to Amend the Scheduling Order to allow the

parties additional time in order to meaningfully participate in the discovery process. Counsel for

Defendants has been consulted and agrees to the requested extension of time.




        Case 5:21-cv-00251-BO          Document 63        Filed 01/06/22      Page 2 of 5
                                           ARGUMENT

       Federal Rule of Civil Procedure 16(b)(4) provides that “[a] court[’s] schedul[ing order]

may only be modified for good cause and with the judge’s consent.” Fed. R. Civ. P. 16(b)(4); see

also Velasquez v. Salsas & Beer Rest., Inc., No. 5:15-CV-146-D, 2016 WL 3339488, at *2

(E.D.N.C. June 13, 2016) (“In order to amend a scheduling order, a party must first establish

‘good cause’ under Rule 16.”) (citation omitted).

       “Rule 16’s ‘good cause’ focuses primarily on ‘the diligence of the moving party.’” Id.

(citing Montgomery v. Anne Arundel Cty., 182 Fed. App’x. 156, 162 (4th Cir. 2006) (per curiam)

(unpublished)). “Establishing good cause requires the moving party to show that the deadlines

could not reasonably have been met despite the party’s diligence.” Velasquez, 2016 WL 3339488

at *2 (citing Cook v. Howard, 484 F. App’x 805, 815 (4th Cir. 2012); United States v. Godwin,

247 F.R.D. 503, 506 (E.D.N.C. 2007)). “In considering diligence, the court looks to whether the

‘evidence supporting the proposed amendment would not have been discovered . . . until after the

amendment deadline had passed.’” Gilbert v. Deutsche Bank Tr. Co. Americas for Residential

Accredit Loans, Inc., No. 4:09-CV-181-D, 2016 WL 7378985, at *1 (E.D.N.C. May 25, 2016)

(citing United States v. Godwin, 247 F.R.D. 503, 506 (E.D.N.C. 2007)) (quotation omitted).

       In this action, good cause to modify the Court’s Scheduling Order exists because the events

giving rise to the modification request – the breakdown in early resolution efforts and a change in

lead counsel for Plaintiff – transpired recently. The undersigned acted diligently to bring the

request for additional time to the Court’s attention prior to the passing of any deadlines for which

extension is sought. Additionally, Counsel for Defendants consents to the requested extension of

time. Accordingly, good cause to modify the Scheduling Order has been shown and this Court

should grant Plaintiff’s Motion to Amend the Scheduling Order.




        Case 5:21-cv-00251-BO          Document 63        Filed 01/06/22      Page 3 of 5
                                          CONCLUSION

       For the foregoing reasons, Plaintiff respectfully requests that this Court grant its Motion to

Amend the Scheduling Order pursuant to Rules 16(b)(4) and 26(f) of the Federal Rules of Civil

Procedure.

       RESPECTFULLY SUBMITTED, this the 6th day of January, 2022.



                                              /s/ Beth A. Stanfield
                                              Beth A. Stanfield (N.C. State Bar No. 36296)
                                              Laura K. Greene (N.C. State Bar No. 47771)
                                              FORREST FIRM, P.C.
                                              105 Grace Street, Suite 101
                                              Wilmington, NC 28401
                                              T/F: (336) 275 - 6344
                                              Beth.stanfield@forrestfirm.com
                                              katie.greene@forrestfirm.com
                                              Attorneys for Plaintiff




       Case 5:21-cv-00251-BO           Document 63        Filed 01/06/22      Page 4 of 5
                                CERTIFICATE OF SERVICE

       I hereby certify that I electronically filed the foregoing MEMORANDUM OF LAW IN

SUPPORT OF PLAINTIFF’S MOTION TO AMEND SCHEDULING ORDER with the

Clerk for the United States District Court, Eastern District of North Carolina, using the electronic

filing system of the Court. The electronic case filing system sent a “Notice of Electronic Filing”

to all attorneys of record who have consented to accept service by electronic means.

       This the 6th day of January, 2022.



                                                             /s/ Beth A. Stanfield
                                                             Beth A Stanfield
                                                             Laura K. Greene

                                                             Attorneys for Plaintiff




        Case 5:21-cv-00251-BO          Document 63        Filed 01/06/22      Page 5 of 5


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