Gil Pharmaceutical Corp. v. Advanced Generic Corp.

692 F.Supp.2d 212 (2010)

Facts

Gil Pharmaceutical Corporation (P) sued Advanced Generic Corporation and others (Ds) for violation of Puerto Rico's Trademark Law, P.R. Laws Ann. Tit. 10, §§ 171-171y (2006)[1] by selling pharmaceutical products under marks or labels confusingly similar to the markings registered by trademark to P. Pursuant to the Puerto Rico Trademark Act, P requested ex parte injunctive relief. Judge Julio Diaz-Valdes granted a hearing for the following day, January 27, 2010, to address issues related to P's request for provisional injunctive relief pursuant to the Puerto Rico Trademark Act. Judge Valdes advised D 'that if it does not appear at the scheduled conference, the Court shall consider its nonappearance as acceptance, of the facts alleged in the complaint as well as other remedy requested, for which the order for Injunction requested may be issued,' and notified P of its responsibility to serve the January 26, 2010, order on Ds, together with the complaint and the summons, no later than that same day at 5:00 p.m. At the hearing, P informed Judge Valdes that it was unable to serve Ds. Judge Valdes held the hearing with only P present. The judge heard evidence and issued an ex parte temporary restraining order requiring Ds 'to immediately stop, cease and desist of using in their products the name or trademark of `Biogil' and `Biotect Plus.' The judge then scheduled a hearing for February 4, 2010, for defendants to show cause as to why the provisional injunctive relief order should be vacated and why a preliminary injunction should not issue. According to Ds, P did not serve Ds as ordered but did notify drug wholesalers about the temporary restraining order along with a letter explaining the wholesalers' obligation to comply with the order. Ds filed a notice of removal to the United States District Court, and D filed an emergency motion to set aside or dissolve the ex parte temporary restraining order issued by the Caguas Superior Court. The Court ordered: (1) the dissolution of the January 27, 2010 TRO pursuant to Federal Rule of Civil Procedure 65.