Lottfie "Lou" Adray Adray's CBS Premiums, Inc. v. Adry-Mart, Inc. Parvis Navi E. Matinkhoo Einola Mateen Musad Hakim

Both Lottfie “Lou” Adray and Adry-Mart, Inc. operate consumer electronics stores under the name “Adray’s” in Southern California. Lou Adray sued for trademark infringement and unfair competition under state and federal law and filed this appeal from the final judgment. We reverse in part and remand.

I. Facts

Lou Adray has operated an “Adray’s” discount electronics store in Orange County since 1968. Except for a two to three year period in the mid-1970’s, other members of the family operated other “Adray’s” stores in Southern California until 1979, when they sold their businesses, including the right to use the “Adray’s” name, to Adry-Mart, which has since operated several “Adray’s” stores in Los Angeles County. In 1989 Adry-Mart opened a new “Adray’s” store in Torrance, prompting Lou Adray to file this suit. Adry-Mart then opened another “Adray’s” store in Lakewood, about five miles from Orange County, and Lou Adray moved for a preliminary injunction. The district court prohibited Adry-Mart from advertising its Lakewood store in Orange County or from opening any “Adray’s” store in that county. Adry-Mart violated the advertising injunction, and the district court…