General Motors Corp. v. Gibson Chemical & Oil Corp.
Plaintiff General Motors Corp. ("GM") obtained a preliminary injunction against defendants Roth and Gibson Chemical & Oil Corp. for trademark infringement related to "Dexron" automatic transmission fluid. Subsequently, defendants moved the court to permit them to repackage and sell the impounded, allegedly infringing goods, or alternatively, to have GM remove the goods from their warehouse, citing health and safety hazards. GM opposed these motions and filed a cross-motion seeking an order holding defendants in contempt for violating the preliminary injunction by distributing a brochure displaying the "Dexron" mark at a trade show. The Court denied defendants' motions to repackage, sell, or remove the goods. While finding defendants technically in civil contempt for the brochure distribution, the Court decided against immediate sanctions, noting the violation appeared inadvertent and GM had not yet demonstrated actual damages, but ordered defendants to provide an accounting and allowed GM to present proof of damages at trial.