Credit One Corp. v. Credit One Financial, Inc.

Proceedings (In Chambers): Order DENYING Plaintiffs’ Application for Preliminary Injunction

Pending before the Court is Plaintiffs Motion for Preliminary Injunction, filed July 28, 2009. After carefully considering the moving papers, supporting documents and exhibits, and Defendants’ Opposition, Plaintiffs application is DENIED for the reasons stated below.

I. BACKGROUND

Plaintiff Credit One Corporation is a regional auto finance company that purchases retail installment contracts from independently owned and franchised auto dealerships. In February 1996, Plaintiff was incorporated as Credit One. In June 1997, Plaintiff began lending money in Southern California under its “Credit One” mark, the mark in question. Subsequently, Plaintiff formed Credit One, LLC, and Credit One Corporation in California in 1998 and 1999, respectively. In July 2004, Plaintiff opened an office location in Phoenix, Arizona, where it began offering auto finance services. In November 2004, Plaintiff began offering services in North Carolina.

Defendant Credit One Financial is the sole shareholder of Defendant Credit One Bank, N.A. (erroneously sued as “Credit One Bank, N.S.”), a national bank that is a…