Grupo Gigante SA De CV v. Dallo & Co., Inc.

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR PARTIAL SUMMARY JUDGMENT, AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

This matter comes before the Court on the parties’ cross-motions for summary judgment or partial summary judgment. After reviewing and considering the materials submitted by the parties and hearing oral argument, the Court adopts the following order.

BACKGROUND

This action stems from a trademark dispute between two parties who both use the name “Gigante” on their retail grocery stores. The plaintiffs began operating a chain of retail grocery stores in Mexico under the name Gigante in 1962. They opened their first stores in Baja California in 1987, and by August 1991, they had six Gigante stores in Baja California, including two in Tijuana. In August 1991, the defendants began operating a retail grocery store named Gigante in San Diego, and they opéned a second Gigante store in San Diego in late 1996 or early 1997.

The two Gigante stores appeared to coexist peacefully on opposite sides of the border for almost eight years. In June 1998, however, a representative of the plaintiffs met with a…