Anthony Vince Nail Spa, Inc. v. M Vince Nail Spa, LLC

CourtDistrict Court, M.D. Tennessee
DecidedNovember 4, 2021
Docket3:21-cv-00366
StatusUnknown

This text of Anthony Vince Nail Spa, Inc. v. M Vince Nail Spa, LLC (Anthony Vince Nail Spa, Inc. v. M Vince Nail Spa, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anthony Vince Nail Spa, Inc. v. M Vince Nail Spa, LLC, (M.D. Tenn. 2021).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

ANTHONY VINCE NAIL SPA, INC. ) d/b/a M. VINCE NAIL SPA, ) ) Plaintiff, ) ) v. ) No. 3:21-cv-00366 ) M VINCE NAIL SPA, L.L.C., BINH T. ) NGUYEN, MT VINCE NAIL SPA ) L.L.C., and RAYMOND T. DO, ) ) Defendants. )

MEMORANDUM OPINION Pending before the Court is Plaintiff’s Motion for Default Judgment pursuant to Federal Rule of Civil Procedure 55(b)(2). (Doc. No. 31). Plaintiff claims that Defendants infringed on its trademarks in violation of the Lanham Act, 15 U.S.C. § 1051 et. seq. and requests that the Court: (1) enter a default judgment; (2) issue a permanent injunction enjoining Defendants from infringing on its trademarks; (3) award statutory damages; and (4) dismiss all remaining claims with prejudice. (Doc. No. 32 at 16). Defendants have not responded. For the following reasons, Plaintiff’s Motion will be granted in part and denied in part. Default judgment will be entered against Defendants for: (1) trademark infringement under Section 32 of the Lanham Act, 15 U.S.C. § 1114 (Count I); (2) false designation of origin under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) (Count II); (3) deceptive trade practices under the Tennessee Consumer Protection Act (“TCPA”), Tenn. Code Ann. § 47-18-104 (Count VI); and (4) unjust enrichment (Count VII). Plaintiff’s claim for trademark dilution under Section 43(c) of the Lanham Act, 15 U.S.C. § 1125(c) (Count III) will be dismissed. Defendants will be permanently enjoined from infringing on Plaintiff’s trademarks, and Plaintiff is awarded $60,000 in statutory damages. I. FACTUAL BACKGROUND1 Plaintiff is an Illinois corporation that operates a chain of over 50 cosmetology salons

throughout the United States. (Compl. ¶ 31). The salons provide various nail spa services, including manicures, pedicures, facials, and waxing services. (Id. ¶ 3). In 2019, Plaintiff opened a line of salons under the name, “M. Vincé Nail Spa” (“M. Vincé”) and operates seven (7) such locations across Colorado, Idaho, Indiana, Nebraska, Texas and Utah. (Id. ¶¶ 5, 32–33). It owns two registered trademarks and one pending registration for the M. Vincé salons. (“M. Vincé Trademarks”). (Id. ¶ 21). The trademarks have been used to market various cosmetology services since November 1, 2019. (Id. ¶ 22). Defendants have operated various nail salons with similar names to the M. Vincé salons. (Id. ¶ 36). In October 1, 2020, Defendants filed to incorporate “M Vince Nail Spa LLC” with the Tennessee Secretary of State. (Noh Decl., Doc. No. 31-2 ¶ 9). Defendants’ incorporation post-

dates Plaintiff’s use of the M. Vincé trademarks. (Compl. ¶ 61). Once Plaintiff became aware of Defendants’ alleged use of its trademarks, it requested that Defendants immediately stop doing so. (Id. ¶ 39). On March 22, 2021, Defendant slightly altered its logo, dissolved “M. Vince Nail Spa LLC,” and, five days later, formed “MT Vince Nail Spa” using the same principal place of business. (Id. ¶ 9; see also Doc. No. 31-2 ¶ 10). Defendants listed Raymond Do as the registered agent. (Doc. No. 31-2 ¶ 10).

1 In determining whether to enter a default judgment under Federal Rule of Civil Procedure 55(b)(2), courts “accept[] as true the well-pleaded allegations of the complaint.” Annette v. Haslam, No. 3:18-CV-1299, 2020 WL 2520512, at *1 (M.D. Tenn. May 18, 2020); see also In re Family Resorts of America, Inc., No. 9104127, 1992 WL 174539, at *4 (6th Cir. July 24, 1992). On May 19, 2021, Plaintiff served Do with the Summons and Complaint. (Id. ¶ 13). That same day, “MT Vince Nail Spa” changed its registered agent to Binh Nguyen. (Id.). On May 27, 2021, Nguyen sent a letter to Plaintiff’s counsel informing them that “MT Vince Nail Spa” had been changed to “TMV Nail Spa,” and that Defendants would change their logo and advertising

to that new name. (Doc. No. 31-3 ¶ 13). But on September 22, 2021, Plaintiff discovered that Defendants continued to advertise under the “MT Vince Nail Spa” name and logo. (Doc. No. 31- 1 ¶ 14; see also Doc. No. 31-4; Compl. ¶ 42). It is alleged that Defendants’ continued use of Plaintiff’s trademarks is deliberate, willful, and wanton. (Compl. ¶ 42; see also Doc. No. 31-2 ¶ 14). Further, Plaintiff alleges that Defendants have created a likelihood of confusion in the marketplace that will increase if Defendants are allowed to continue its misappropriation of the M. Vincé trademarks. (Compl. ¶ 48). II. LEGAL STANDARD “Federal Rule of Civil Procedure 55(b) governs entry of default judgment where, as here, default has been entered against a party under Rule 55(a).” Driver v. Fabish, No. 3:13-cv-01087,

2017 WL 413719, at *1 (M.D. Tenn. Jan. 31, 2017). After the clerk enters default, “the plaintiff’s well-pleaded allegations are deemed admitted.” Progressive Haw. Ins. Corp. v. Garza, No. 3:20- cv-00980, 2021 WL 2952941, at *2 (M.D. Tenn. July 14, 2021) (citing Thomas v. Miller, 489 F.3d 293, 299 (6th Cir. 2007)). The Court may enter default judgment with or without a hearing. (See Fed. R. Civ. P. 55(b)). “The decision to enter a default judgment under Rule 55(b)(2) lies in the district court’s sound discretion.” Mucerino v. Newman, No. 3:14-cv-00028, 2017 WL 387202, at *2 (M.D. Tenn. Jan. 26, 2017). Courts analyze several factors to determine whether to enter default judgment, including: “(1) prejudice to the plaintiff; (2) the merits of the plaintiff’s claim; (3) the complaint’s sufficiency; (4) the amount of money at stake; (5) the possibility of a dispute concerning material facts; (6) whether the default was due to excusable neglect; and (7) the strong policy favoring decisions on the merits.” Exec. Corp. v. Oisoon, LLC, No. 3:16-cv-00898, 2017 WL 4310113, at *2 (M.D. Tenn. Sept. 28, 2017) (citation omitted).

III. ANALYSIS Based on the well-pleaded factual allegations in the complaint, and the declarations and exhibits submitted in support of their motion, the Court concludes that there is “sufficient basis for determining defendants’ liability without the need for a hearing.” Chanel, Inc. v. Jermaine Wrice, No. 5:13-cv-891, 2015 WL 521144, at *3 (N.D. Ohio Feb. 9, 2015). “Even though the well-pleaded factual allegations of the complaint are accepted as true for purposes of liability, the Court must still determine whether those facts are sufficient to state a claim for relief as to the cause of action for which the plaintiff[] seeks default judgment.” Id. (citation omitted). The Complaint alleges that Defendants’ actions constitute: (1) trademark infringement under Section 32 of the Lanham Act, 15 U.S.C. § 1114 (Count I) (Compl. ¶¶ 43–52);

(2) false designation of origin under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125

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Anthony Vince Nail Spa, Inc. v. M Vince Nail Spa, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anthony-vince-nail-spa-inc-v-m-vince-nail-spa-llc-tnmd-2021.