Judge Rebukes Trader Joe’s For ‘Meritless’ Trademark Lawsuit Against Workers' Union

A federal judge has rebuked Trader Joe’s for filing a “meritless” trademark claim against its workers’ union and ordered the grocer to cover the union’s legal fees as a deterrent against similar litigation.

The company had claimed that Trader Joe’s United, a new union representing employees at four stores, violated Trader Joe’s trademarks through its name and logo. But U.S. District Judge Hernán D. Vera dismissed the lawsuit in January, finding that Trader Joe’s had tried to “weaponize the legal system” against its own workers.

In a new order issued Tuesday, Vera went a step further and said Trader Joe’s should have to pay more than $112,000 in attorney’s fees for the union. He wrote that the trademark claim was notable for its “lack of substantive merit,” and reiterated his belief that Trader Joe’s never would have filed it if it wasn’t battling the union in an organizing campaign.

“Employers should be discouraged from bringing meritless claims against unions they are challenging at the ballot box,” he wrote.

A Trader Joe’s spokesperson could not immediately be reached for comment Tuesday.

Union attorney Seth Goldstein said the order should put employers who would pursue similar claims on notice. Goldstein and one other lawyer for the union will be paid by Trader Joe’s under Vera’s order.

“This is a very, very good day for labor because companies are now being told that you can’t use trademark law and other types of cases to try to deter workers from organizing,” Goldstein said. “If the company wants to continue this frivolous exercise then they’re going to have to pay for it.”

Trader Joe’s has appealed Vera’s dismissal of the case from January, and Goldstein said the company could pursue a stay against the order