UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY
August 18, 2008
DOCTOR'S ASSOCIATES INC., PLAINTIFF,
JESAL DESAI, ALSO KNOWN AS JESAL A. PATWARI, SHAPAT, INC., SHAPAT II, LLC, SHAPAT III, LLC, PATWARI, LLC, DEFENDANTS.
The opinion of the court was delivered by: William J. Martini, U.S.D.J.
Plaintiff and Defendants having entered into four franchise agreements; these franchise agreements having granted Defendants use of Plaintiff's trademarks; Plaintiff having apparently validly terminated these agreements; Defendants thus being apparently unauthorized to use Plaintiff's trademarks; Plaintiff having submitted a claim for damages under the agreements to arbitration; the arbitrator having issued an award for Plaintiff; Defendants having secured a stay of the enforcement of this award in state court; the state court stay ordering the parties to maintain the "status quo" on the grounds that the franchise agreements were potentially unconscionable; the Court finding that in view of the state court's finding that the agreements were potentially unconscionable that its reference to the "status quo" required only a stay of the arbitration award-and did not require maintenance of agreements that the state court found potentially unconscionable following Plaintiff's termination; Plaintiff having filed a motion for a preliminary injunction enjoining Defendants from using Plaintiff's trademarks; the Court having granted Plaintiff's motion; Defendants now seeking to stay this order; Defendants arguing that this Court's order is inconsistent with the state court's order; the Court finding that its order enjoining Defendants from using Plaintiff's trademarks is not inconsistent with the state court's stay of the arbitration award; and good cause appearing;
IT IS on this 18th day of August 2008, hereby
ORDERED that Defendants' motion for a stay of this Court's preliminary injunction is DENIED.
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