Sludgehammer Group, Ltd. v.
Gary McClernan
Claim Number: FA0705000977484
PARTIES
Complainant is Sludgehammer Group, Ltd. (“Complainant”), represented by Donald
J. Molosky, of Molosky & Co.,
REGISTRAR AND DISPUTED DOMAIN NAMES
The domain names at issue are <sludgehammer.com> and <piranaabg.com>,
registered with Namesecure.com.
PANEL
The undersigned certifies that he or she has acted independently and
impartially and to the best of his or her knowledge has no known conflict in
serving as Panelist in this proceeding.
Mark McCormick as Panelist.
PROCEDURAL HISTORY
Complainant submitted a Complaint to the National Arbitration Forum
electronically on May 4, 2007; the
National Arbitration Forum received a hard copy of the Complaint on May 8, 2007.
On May 4, 2007, Namesecure.com confirmed by e-mail to the
National Arbitration Forum that the <sludgehammer.com> and <piranaabg.com>
domain names are registered with Namesecure.com
and that the Respondent is the current registrant of the names. Namesecure.com
has verified that Respondent is bound by the Namesecure.com
registration agreement and has thereby agreed to resolve domain-name disputes
brought by third parties in accordance with ICANN’s Uniform Domain Name Dispute
Resolution Policy (the “Policy”).
On May 14, 2007, a Notification
of Complaint and Commencement of Administrative Proceeding (the “Commencement
Notification”), setting a deadline of June 4, 2007 by which Respondent could
file a Response to the Complaint, was transmitted to Respondent via e-mail,
post and fax, to all entities and persons listed on Respondent’s registration
as technical, administrative and billing contacts, and to postmaster@sludgehammer.com and postmaster@piranaabg.com
by e-mail.
A Response was received in electronic but not hard copy on June 4,
2007. Because the National Arbitration
Forum has not received the Response in hard copy format, it has determined the
Response to be deficient per Supplemental Rule 5(a).
Complainant filed an Additional Submission on June 11, 2007. Respondent filed an Additional Submission in
reply on June 15, 2007.
On June 11, 2007, pursuant to Complainant’s
request to have the dispute decided by a single-member Panel, the National
Arbitration Forum appointed Mark McCormick as Panelist.
RELIEF SOUGHT
Complainant requests that the domain names be transferred from Respondent to Complainant.
PARTIES’ CONTENTIONS
A. Complainant
Complainant was formerly known as PIRANA ABG, INC. Respondent was one of seven founding
shareholders and was also a director and CFO of the corporation. Complainant requested that Respondent
register the <piranaabg.com> domain name on Complainant’s behalf. Respondent in September 2004 registered the
domain name in his own name. Complainant
started using the PIRANA ABG trademark in connection with sales of its
wastewater treatment products in November 2004.
Complainant did not discover Respondent had done this until after
Respondent was removed from the company in September 2006. In response to an April 20, 2007 email from
Complainant, Respondent locked out Complainant’s DNS server from the domain
name.
Complainant in October 2005 selected the SLUDGEHAMMER trademark for use in selling its goods and started using the trademark in February 2006. In November 2005, Complainant made an application with the patent office to register the trademark. The application is pending. Complainant discovered that the <sludgehammer.com> domain name was already registered and asked Respondent to attempt to purchase it for Complainant. Respondent did so in August 2006 but registered it in his own name, a fact Complainant didn’t discover until after Respondent’s termination. Respondent has refused to transfer the domain name unless he is paid additional severance.
Complainant contends the domain names are confusingly similar to its PIRANA ABG and SLUDGEHAMMER marks and that Respondent is not using them in a bona fide offering of goods or services. Complainant asserts that Respondent registered and is using the domain names in bad faith.
B. Respondent
Respondent admits that the domain names incorporate what Complainant asserts
as trademarks. He asserts Complainant
has never made application for trademark of the PIRANA ABG, INC. name and that
the
He contends he acquired the <piranaabg.com> domain in good faith to
assist the
Respondent said Complainant
terminated his ownership of stock in the
C. Additional Submissions
Complainant filed an Additional Submission asserting the
Respondent in his Additional Submission contends he had a legitimate interest in the <piranaabg.com> domain name because he has sold Pirana products since December 2003. He contends he registered the domain name to assist himself and others to sell Pirana products cooperatively. He contends he has a legitimate interest in the <sludgehammer.com> domain name because he was selling Sludgehammer products, when the Pirana products were rebranded in September 2005.
FINDINGS
Respondent’s Response was deficient because it was not accompanied by a hard copy. The Panel does not believe this created prejudice and thus declines to reject the Response on that ground.
It is clear that Respondent registered the
domain name <piranaabg.com> before either the
DISCUSSION
The Panel finds that there is no evidence of abusive registration of the domain names. The registration of the <piranaabg.com> domain name was done by agreement of the founders of the subsequently formed corporations. The <sludgehammer.com> domain name was purchased by Respondent at the request of Complainant. The dispute arises over Respondent’s refusal to transfer these domain names to Complainant as a result of the termination of his relationship with Complainant.
While Complainant has presented evidence supporting a breach of fiduciary duty or contract claim against Respondent, this evidence does not present a case within the scope of the Uniform Domain Name Resolution Police (UDRP). Whatever a trier of fact may find as to the merits of Complainant’s rights in the domain names, those merits do not involve a determination that Respondent was guilty of abusive or bad faith registration of the domain names. The merits will require a determination of the relative rights of the parties in the domain names at the time the parties parted company. This is not a cybersquatting case.
When an individual registers a domain name on behalf of another party and then subsequently refuses to relinquish control, the cause of action is for breach of contract or breach of fiduciary duty and is outside the scope of UDRP Policy. See Fuze Beverage, LLC v. CGEYE, Inc., FA 844252 (Nat. Arb. Forum Jan. 8, 2007); see also Frazier Winery LLC v. Hernandez, FA 841081 (Nat. Arb. Forum Jan. 2, 2007).
This case must be dismissed on this jurisdictional ground.
DECISION
Because this case is outside the scope of the UDRP Policy, it is hereby
dismissed without prejudice to Complainant’s right to pursue relief in a forum
having jurisdiction.
Mark McCormick, Panelist
Dated: June 25, 2007
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