Opinion ID: 2976922
Heading Depth: 3
Heading Rank: 2

Heading: Bob Fitzner and Bob Fitzner, Inc.

Text: GRL’s use of its common-law marks was not, however, itself without complication. Bob Fitzner, a resident of Texas, had incorporated “Bob Fitzner, Inc.” (“BFI”) as a Texas corporation in 1992. He was the president and sole owner. BFI had filed the mark “Homestead Mortgage” with the U.S. Patent and Trademark Office in 1993. The office registered it as a trademark in 1996 (the “Mark”). At the time it sued HMC, GRL knew about BFI’s Mark. In 2001, the U.S. Patent and Trademark Office had denied GRL’s application to register its own marks because of the likely confusion with the Mark. On March 20, 2001, the Comptroller of the State of Texas forfeited BFI’s corporate privileges for failure to pay its franchise fee. As a result, BFI could no longer sue or defend in a state -2- Nos. 07-1773/07-1815 Guaranty Residential Lending, Inc. v. Homestead Mortgage Co., LLC or federal court in Texas. Tex. Tax Code § 171.252(1). Texas courts refer to the forfeiture of privileges as a split in corporate assets: legal title to the assets remains in the company while beneficial (or equitable) title passes to the shareholder personally. El T. Mexican Rests., Inc. v. Bacon, 921 S.W.2d 247, 251 (Tex. App. 1995). On March 22, 2002, the Secretary of State of Texas forfeited the company’s charter. On August 1, 2001 (after BFI’s forfeiture of corporate privileges but before its forfeiture of charter), Fitzner filed for Chapter 7 bankruptcy protection. On his schedule of personal property, Fitzner listed “Stock and interest in incorporated business of: Homestead Mortgage Company.” He did not list his beneficial title to the assets of BFI or note that he was personally liable for any newly incurred debts of BFI. His case was initially closed on January 29, 2002, but later reopened on his motion on February 11, 2003. The case was finally closed on January 20, 2006.