Lucky’s Farmers Market, a Boulder-based grocery chain, has hit a pair of stumbling blocks in its plans to open stores across the United States.
Lucky’s has been named as a defendant in two separate lawsuits — one of which alleges trademark infringement of California-based Lucky Supermarkets — recently filed in U.S. district courts in Montana.
The second lawsuit involves a lease dispute related to a proposed store in Bozeman, Mont.
In a complaint filed last month, attorneys for Albertsons LLC and Save Mart Supermarket allege that Lucky’s Market is infringing on the trademark of Lucky Supermarkets, a chain with 60 stores in California and roots dating back to 1936.
The red-lettered Lucky’s logo is “virtually identical” to the Lucky Supermarkets trademark that has been licensed by Albertsons to Save Mart Supermarkets, attorneys alleged in the complaint filed Jan. 17 in the U.S. District Court for the District of Montana Billings division.
“Lucky’s Market uses the same name, the same font and the same color scheme used by Albertsons (LLC’s) original LUCKY trademark,” attorneys wrote in the complaint. “…Lucky‘s Market’s use of the LUCKY mark is likely to cause confusion as to the source of the goods and services it offers.”
When Lucky’s Market opened in 2003, the single neighborhood market at 3960 Broadway in Boulder was “somewhat geographically remote” from Lucky Supermarkets.
The first Lucky grocery store opened in 1936 and the chain ballooned to more than 400 stores by the late 1990s. The stores were converted to the Albertsons brand after the Idaho-based chain acquired Lucky Stores Inc. and American Stores Company LLC in 1999.
Albertsons LLC retained ownership of the Lucky trademarks after the acquisition and divestment of the Albertsons chain in 2006. Save Mart Supermarket, which acquired Albertsons stores in California and Nevada, subsequently licensed the Lucky trademarks from Albertsons LLC for use in those two states.
“Lucky’s Market’s nationwide expansion into the Midwest, and now into western states such as Montana, is causing and will continue to cause (Albertsons) and its licensee Save Mart Supermarkets irreparable harm,” attorneys claimed in the filing.
As of Monday, a response to the complaint had yet to be filed. Attorneys for Lucky’s Market have until Feb. 21 to file, according to court documents.
‘Congenial talks’
Bo Sharon, the founder of Lucky’s Market and a principal in the Lucky’s Farmers Market expansion efforts, said both parties remain in discussions and a resolution could be forthcoming.
“We are in very congenial talks with Albertsons LLC and are working to come to a mutually benefiting resolve that I expect within the next few weeks,” Sharon said in an email to the Daily Camera.
Attorneys for Albertsons LLC and Save Mart could not be reached for comment Monday.
The Billings, Mont., Lucky’s Farmers Market that triggered the complaint is expected to open next month. The Billings store will be the chain’s fifth.
In addition to stores in Boulder and Longmont, Lucky’s Market has opened stores in Columbus, Ohio, and Columbia, Mo.
After Billings, Lucky’s Market plans to open stores in St. Louis and Louisville, Ky., this year, Sharon said.
Lawsuit over Bozeman lease
The future of one potential Lucky’s Market location appears to be in flux, according to a separate lawsuit filed in the U.S. District Court of Montana Butte Division.
In a complaint filed in Gallatin County, Mont., court on Dec. 6, 2013, and moved to federal court this year, Bozeman Shopping Center LLC alleged that Lucky’s Farmers Market of Bozeman LLC has violated the terms of leases signed for a property at 1525 W. Main St. in Bozeman.
Also named in the lawsuit was Michael Gilliland, the natural foods grocery industry veteran who pleaded guilty last year to a misdemeanor count of attempted pandering. Gilliland, who founded Wild Oats Markets and Sunflower Farmers Markets, resigned from his CEO post at Sunflower in 2011 after being arrested in Phoenix following a prostitution sting by undercover officers.
Gilliland, according to the lawsuit, served in a limited personal guaranty capacity for Lucky’s Market.
Bozeman Shopping Center LLC is seeking damages from Gilliland and Lucky’s Market as a result of the grocer not opening as planned, attorneys alleged in the suit.
Lucky’s Market and Gilliland filed a response, alleging that Bozeman Shopping Center LLC violated the terms of the lease and Lucky’s has no obligation to accept possession.
‘Help us get the deal done’
Sharon on Monday said he could not comment on the lease lawsuit, but provided clarification on Gilliland’s role with the company.
“Mike Gilliland is absolutely not involved in Lucky’s Market — no ownership or interest whatsoever,” Sharon said. “But his brother and my longtime friend, Patrick, is my partner on the out-of-state growth.
“That being said, the first lease we singed was the Bozeman site and the Lucky’s name and business didn’t have any (cachet) out there, so Mike signed a personal guaranty in order to help us get the deal done.”
The lease lawsuit was first reported by the Bozeman Daily Chronicle.
According to the Daily Chronicle article, the property in dispute incurred contamination from a dry cleaner that formerly operated at the center. CVS partnered with the city of Bozeman on a $5.8 million plan to clean up the dry-cleaning chemical that was found to be contaminating soil and groundwater on the site.
Those efforts are expected to continue through 2021, the Daily Chronicle reported.
Contact Camera Business Writer Alicia Wallace at 303-473-1332 or wallacea@dailycamera.com
