Sunbeam Products, Inc. v. Chicago American Manufacturing, LLC
United States Court of Appeals for the Seventh Circuit
686 F.3d 372 (2012)
Lakewood Engineering & Manufacturing Co. (Lakewood) (debtor) was a manufacturer that held patents and trademarks on box fans. Lakewood entered into an agreement with Chicago American Manufacturing (Chicago) for Chicago to produce fans using Lakewood’s patents and trademarks. The agreement required Chicago to ship the fans to Lakewood’s customer, based upon Lakewood’s instructions. The agreement also allowed Chicago to sell the fans independently if Lakewood failed to purchase all of the fans. Three months after the agreement, a group of Lakewood’s creditors filed an involuntary bankruptcy petition against Lakewood. The bankruptcy trustee sold the Lakewood business, which included the trademarks and patents, to Sunbeam Products, d/b/a Jarden Customer Solutions (Jarden) (plaintiff). The trustee rejected the executory portion of the agreement with Chicago, but Chicago continued to make Lakewood-branded fans. Jarden brought an adversary action in bankruptcy court. The bankruptcy judge held that Chicago could continue making the Lakewood branded fans through the remaining term of the agreement on equitable grounds. Jarden appealed to the district court, and the district court certified the case for direct appeal to the Court of Appeals for the Seventh Circuit.
Rule of Law
Holding and Reasoning (Easterbrook, C.J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 177,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.