Cordelia Lighting, Inc. v. Zhejiang Yankon Group Co., Ltd et al, 5-14-cv-00881 (CACD April 27, 2015, Order) (Bernal, J.)
Thursday, April 30, 2015
Price Erosion, Loss of Market Share, and Difficulty Collecting Damages Establish Irreparable Harm Supporting Preliminary Injunction
The court granted plaintiff's motion for a preliminary injunction prohibiting the sale of two defendants' accused LED fixtures because plaintiff established irreparable harm through price erosion, loss of market share/position, and difficulty in collecting damages from foreign defendants. "After [defendants] entered the market, Home Depot demanded price reductions, which lowered [plaintiff's] wholesale price [by] approximately 22 percent. . . . Home Depot specifically requested that [plaintiff] lower its price so that Home Depot could lower its retail price point in response to the accused products being sold through Lowe’s. . . . [Plaintiff] also explains that it is difficult for manufacturers in the industry to raise prices once customers have received lower prices. . . . [Defendant] is a foreign corporation, presumably with most of its assets located overseas. Therefore, it is likely that [plaintiff] would face significant difficulty in collecting damages even if it prevailed at trial. The potential difficulty inherent in collecting damages from a foreign defendant with limited assets in the United States supports a finding of irreparable harm."