Judge Frederick Scullin
Simao was a managing member and majority owner of two Honda dealerships terminated by American Honda Motor Co. The court’s Feb. 13 order enjoined defendants’ display of Honda trademarks and trade designs on their former dealership properties. Among other things, the order called for the removal—and destruction—of all Honda signs and trade dress design elements from the two dealerships. The court granted defendants 14 days to file and serve affidavits and supporting materials showing cause why the court should not hold them in civil contempt of its Feb. 13 order, and why it should not impose per diem sanctions accruing daily until full compliance with that order. Based on affidavits from Simao and defendants’ counsel Kublick, the court concluded that signage and trade dress elements had not been fully removed form the two dealerships, and that removed Honda panels displaying Honda’s stylized “H” trademark and other trade dress elements had not been destroyed. Noting that defendants did not file for bankruptcy the court found nothing other than Simao’s conclusory assertions, to support defendants’ alleged financial inability to fully comply with the court’s order.