Opinion ID: 783938
Heading Depth: 2
Heading Rank: 2

Heading: The First Action

Text: 7 In 1997, Cello brought the First Action against Storey, initially alleging only trademark dilution. After discovery and while cross-motions for summary judgment were pending, the ACPA was signed into law, and Cello sought to add an ACPA claim. After requesting and receiving additional briefing on the ACPA, the district court held that genuine issues of material fact existed as to all the elements of Cello's trademark and ACPA claims, and granted Cello leave to amend its complaint, see Cello Holdings, L.L.C. v. Lawrence-Dahl Cos., 89 F.Supp.2d 464, 472-75 (S.D.N.Y. 2000), which Cello did. 8 On August 15, 2000, shortly before the case was scheduled for trial, the district court issued an order stating the following: 9 It having been reported to this Court that the above entitled action has been settled, IT IS ORDERED that this action be, and the same hereby is, discontinued with prejudice but without costs; provided, however, that if settlement is not consummated within thirty days of the date of this order, either party may apply by letter within the 30-day period for restoration of the action to the calendar of the undersigned, in which event the action will be restored. 10 Neither party applied for restoration within the thirty day period. Correspondence from Cello's counsel to Storey's counsel, dated August 16, 2000, suggests that both parties received this order, states that the parties had informed Judge Chin that they believed they had reached an agreement for voluntarily [sic] dismissal of this action, and offers to draft some general release language. It also reports a conversation that occurred between Cello's counsel and Judge Chin's courtroom deputy as follows: [The courtroom deputy] asked if I thought we could work out the issues within thirty days. I told him that I thought we could. He said that was good, because he was going to have Judge Chin issue a `thirty-day order.' 11 The information conveyed to the district court by Cello's counsel that led to this thirty-day order, however, may not have been an accurate description of the agreement between the parties. In its January 24, 2002 Opinion in the proceedings now on appeal, the district court described the events leading to its August 15, 2000 order as follows: Cello's counsel advised the Court that the case had been `settled.' In fact, as the Court has now learned, the First Action had not actually `settled,' but instead Cello had merely decided to discontinue its claims. The parties did not enter into a settlement agreement. Storey, 182 F.Supp.2d at 358. Cello contends that, although [a]ttempts were made to negotiate a settlement agreement, ... [n]o agreement ... was reached other than to enter a voluntary dismissal of the First Action.