The Scoop Isn’t Over Yet: Rebel’s Appeal and Bankruptcy Filing Complicate Van Leeuwen’s $23.8 Million Win

Just when Van Leeuwen Ice Cream LLC v. Rebel Creamery LLC appeared headed for the freezer, Rebel kept the dispute from melting away by filing an appeal and seeking Chapter 11 bankruptcy protection.

Following the Eastern District of New York’s decision finding Rebel liable for trade dress infringement, unfair competition and dilution, and awarding Van Leeuwen nearly $23.8 million in disgorged profits, Rebel filed a notice of appeal and, shortly thereafter, commenced a Chapter 11 case in the U.S. Bankruptcy Court for the District of Utah. The bankruptcy filing automatically stays further proceedings against Rebel and may delay Van Leeuwen’s efforts to collect on the monetary judgment.

At least for now, the bankruptcy filing does not appear to alter the district court’s injunction, which prohibits Rebel from selling products bearing trade dress likely to be confused with Van Leeuwen’s and requires Rebel to redesign its packaging to avoid using Van Leeuwen’s trade dress elements. The extent to which the bankruptcy proceedings will affect the enforcement or implementation of that injunctive relief remains to be seen.

For a deeper dive into the court’s decision, see our previous blog post, “Why Van Leeuwen Won When So Many Trade Dress Plaintiffs Lose,” available here.