LUBBOCK, TX — A contentious legal battle between two brothers, Michael and David Postar, has escalated to the United States District Court for the Northern District of Texas. The lawsuit, originally filed by Michael Postar against his sibling, alleges trademark infringement, breach of fiduciary duty, and violations of a mediated settlement agreement, with twin brother David Postar filing a forceful defense. The dispute centers around the well-known storage businesses in west Texas, including Affordable Storage and A-Plus Storage.
Michael Postar, the plaintiff, and David Postar, the defendant, were once joint owners of a large number of self-storage facilities across west Texas. The brothers worked together for years before deciding to split their jointly owned businesses in 2017. As part of the division, they agreed to divide their assets and the use of several trademarks under a Rule 11 Mediated Settlement Agreement (MSA).
According to Michael’s complaint, the trademarks at the center of the dispute include the "Smiley Guy" logo, which features a smiley face with arms and legs, and the "Affordable Storage" logo, which incorporates a crown design with the character "Smiley Guy." These trademarks were originally jointly owned but were later assigned to Michael’s company. Importantly, the agreement granted Michael the exclusive right to use these trademarks in Lubbock County, while David was granted exclusive rights to use the trademarks in Midland County and Tom Green County where there are three affordable storage, according to a company website.
But apparently David, who runs the storage facilities in Midland and San Angelo has also been busy in Lubbock as well, and that's where the conflict seems to be.
![David's Discount Storage uses the "Box Smiley" brand and is blocks away from brother Michael's self storage location.](/sites/default/files/2024-08/discount-storage.jpg "David's Discount Storage uses the "Box Smiley" brand and is blocks away from brother Michael's self storage location.")
David's Discount Storage uses the "Box Smiley" brand and is blocks away from brother Michael's self storage location.
Michael's Affordable Storage on Indiana in Lubbock.
Michael alleges that David has been using unauthorized derivations of these registered trademarks in Lubbock County, which he claims violates the MSA, the Postar IP LLC Company Agreement, and a series of arbitration awards. Michael contends that David’s actions, including the use of these marks on vehicles and storage facilities in Lubbock, have caused confusion among customers and diluted the value of the trademarks. The businesses at the center of this dispute are Affordable Storage and A-Plus Storage, both well-known names in the region.
David also raises the defense of laches, estoppel, and the statute of limitations, arguing that Michael’s claims are barred due to the long passage of time and the prior knowledge and consent Michael had regarding the use of the trademarks.
Michael is seeking damages, a permanent injunction against David’s use of the trademarks in Lubbock County, and a declaratory judgment affirming his exclusive rights to the marks in that region.
David, on the other hand, is seeking a dismissal of the case, arguing that the matters in dispute have already been resolved through arbitration, and any further court proceedings should be halted pending the completion of the arbitration process.
In addition to trademark infringement, Michael accuses David of breaching fiduciary duties owed to Postar IP, LLC, the entity that holds the registered marks and where David is a partner.
David Postar has filed an answer denying most of the allegations in Michael’s complaint. His defense centers on the argument that the issues raised by Michael have already been addressed in prior arbitration proceedings. He asserts that the court lacks jurisdiction due to an ongoing arbitration process initiated by Michael himself, which has not been stayed by any court.
David admits to certain actions, such as sending a cease-and-desist letter to Michael in 2018 and using logos similar to those in question. However, he contends that his use of these trademarks was lawful and consistent with previous arbitration rulings, which allowed for the intermittent use of such marks under specific conditions.
Adding to the complexity of the situation, David has publicly expressed his frustration over what he sees as Michael's aggressive business tactics, including building storage facilities near David's existing ones. David operates Discount Storage in Lubbock, while Michael runs Affordable Storage, often in close proximity. David believes these actions are unnecessary and hurtful to both businesses and the community.
Affordable Storage on US 67 south in San Angelo, Texas, owned by brother David Postar.
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