Fountain Powerboats sues Reggie Fountain over website

Posted on

The former owner of Fountain Powerboats finds himself in another legal tangle with the company he sold to investors in 2010.

Fountain Powerboats filed an application for a restraining order and a motion for a preliminary injunction against Reggie Fountain in a North Carolina court, the state in which bankruptcy filings and lawsuits, countersuits and motions between the two parties have played out since 2011.

The lawsuit alleges that “plaintiff Reggie Fountain has co-opted property, service marks, images and video footage from Fountain Powerboats [and is] using the images on his website.”

A website called Fountain Performance Marine features Reggie Fountain’s likeness and uses a service mark, or logo, that “is a colorable imitation of Fountain Powerboats’ service mark,” the lawsuit says.

The site incorporates Fountain Powerboats’ “historical sales data into the Fountain Performance Marine website, as though Fountain Performance Marine had made the described sales,” the lawsuit says.

The website also says Fountain Performance Marine possesses “Factory Certification authority, when Fountain Powerboats, not Reggie Fountain or Fountain Performance Marine, owns the factory that built Fountain Powerboats-brand boats,” according to the lawsuit.

The branding of Fountain Performance Marine “will damage Fountain Powerboats’ reputation and cause customers in the powerboat market to mistakenly believe Fountain Powerboats is now Fountain Performance Marine, led by Reggie Fountain,” the lawsuit says.

In early 2010, Fountain Powerboats emerged from Chapter 11 bankruptcy protection with a new owner in Liberty Associates. As part of the reorganization plan, Reggie Fountain was retained as president and CEO. However, according to both parties, the arrangement quickly soured, culminating with Fountain announcing his resignation in December 2010, citing key differences in philosophy.

Less than two months after announcing his departure from Fountain Powerboats, the company he founded 30 years earlier and eventually sold after a Chapter 11 bankruptcy filing, Reggie Fountain launched RF, or Real Fast Powerboats.

The lawsuits, countersuits and motions were filed in North Carolina Business Court by Reggie Fountain and Fountain Powerboats, with documents dating from March. Both sides seem determined to prove they were the one wronged in the business relationship they once shared.

In May, after several months of legal battles with creditors and two Chapter 11 filings in three years, a temporary receivership of Fountain Powerboats and its affiliates was dissolved by a North Carolina judge.

At that time a sealed mediation settlement between Fountain and lender First Capital, to which Fountain owes more than $53 million, according to court documents, was filed in the Superior Court division of North Carolina Business Court.

— Reagan Haynes

Welcome to TradeOnlyToday’s premium content! To continue reading, please register now, for access to 10 free stories per month. Or subscribe, for unlimited access to all TradeOnlyToday content!

Click here to Register ... it's free!

Basic subscription: Registered members get free access to 10 premium content stories each month!

Click here to Register!

Subscribe ... for unlimited access!

Individual subscription: $29 for unlimited site access for one year.

Small Business subscription: $140 for unlimited site access for up to 10 members of a company for one year.

Corporate subscription: $300 for unlimited site access for all members of a company for one year.

You may close this dialog after seconds.

Comments

3 comments on “Fountain Powerboats sues Reggie Fountain over website

  1. John Fox

    Too bad that it all comes down to this.

    Reggie Fountain is and will always be Fountain Boats, no matter what name you call the company. If purchasers of the assets didn’t understand that going in, they have no business sense and do not understand the marketplace.

    Wish Reggie the best!

  2. LTdealer

    Obviously Reggie Fountain was never asked to sign a non compete agreement. Who’s fault is that ?

  3. Don Johnson

    Sueing is the only money that Fountain Powerboats will ever make without having Reggie behind the name. Hard to sell boats when the originator isn’t even involved with the company anymore! Let’s go back to Eye for an Eye!

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments Policy.

Vote Today

Should there be new boating-safety regulations after the three-boat crash in Florida?

View Results

Loading ... Loading ...

Search Boats for Sale

Length
Year
Price

Login to Trade Only Today

Lost Password