In Escamilla v. M2 Technology, the individual owner of a business sued to enforce the “M2” trademark owned by his business. No. 12-41183 (July 16, 2013, unpublished). The Fifth Circuit affirmed the dismissal of the claim for failure to join a necessary party, as the individual did not join his company as a party plaintiff, thus exposing the defendant to potential repetitive future litigation. (This decision appears to have been rooted in avoiding the cost of having counsel appear for the company.) The Court rejected the individual’s argument that a future suit would be barred by claim preclusion, noting the clear separation in Delaware corporate law between a business entity and its shareholders.
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