Azurous, Inc., d/b/a Cabeau v. Kennedy International, Inc.

CourtDistrict Court, D. New Jersey
DecidedNovember 17, 2025
Docket3:23-cv-04770
StatusUnknown

This text of Azurous, Inc., d/b/a Cabeau v. Kennedy International, Inc. (Azurous, Inc., d/b/a Cabeau v. Kennedy International, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Azurous, Inc., d/b/a Cabeau v. Kennedy International, Inc., (D.N.J. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

AZUROUS, INC., d/b/a CABEAU, Civ. No. 23-4770 (ZNQ)(JBD)

Plaintiff, MEMORANDUM ORDER (Filed Under Temporary Seal) v.

KENNEDY INTERNATIONAL, INC.,

Defendant.

Before the Court is a request by plaintiff Azurous, Inc. (“Azurous”) to take additional discovery from defendant Kennedy International, Inc. (“Kennedy”). [Dkt. 56.] Kennedy opposes the request. [Dkt. 59.] For the reasons set forth below, the Court GRANTS Azurous’s request in part and DENIES it in part.1 * The Court writes for the parties and accordingly assumes familiarity with the case. Azurous filed this action against Kennedy in August 2023 alleging patent infringement, trade dress infringement, and unfair competition. [Dkt. 1.] The Court has issued two opinions granting in part and denying in part Kennedy’s motions to dismiss the operative complaints against it. [Dkts. 20, 21, 35, 36.] On June 24, 2025 (after the Court’s second opinion), and in lieu of filing an answer to Azurous’s amended complaint, Kennedy filed a request for entry of its voluntary default pursuant to Federal Rule of Civil Procedure 55(a). [Dkt. 39.] Kennedy explained

1 In view of the Court’s Order today granting the parties’ motion to seal portions of the submissions presently before the Court [Dkt. 62], the Court has filed this Order under temporary seal pending proposed redactions by the parties. that, in light of the Court’s dismissal of Azurous’s claims for pre-suit willfulness (as to patent infringement), the expiration of Azurous’s asserted design patent, the parties’ unsuccessful settlement efforts, and Kennedy’s limited sales of the accused

product and limited profits from those sales, it sought the entry of default “to minimize any further burden on the parties or th[e] Court” because “the amounts in controversy are insufficient to justify any further expense into the liability issues in this case.” Id. at 4-5. Azurous did not oppose the voluntary entry of default against Kennedy, but requested “discovery and a hearing, as necessary, to conduct an accounting, determine the amount of damages, further investigate the facts

surrounding [Kennedy]’s willful infringement, and determine the scope of a permanent injunction to be entered.” [Dkt. 41] at 1, 3. The Court held a telephone status conference on July 9, 2025 to address Kennedy’s request for entry of default, during which the Court directed the parties to “meet and confer regarding the nature and scope” of potential default proceedings. [Dkt. 42.] On July 21, 2025, the parties filed a joint status letter indicating that they were unable to agree on a proposal for proceedings following the entry of default

against Kennedy. [Dkt. 43.] Kennedy proposed that “the Court limit any default discovery to that which Kennedy [ ] already voluntarily agreed to produce—namely, a signed declaration about the sourcing, sales, and profits of th[e] accused products” with “authenticate[d] documents sufficient to identify th[e] accused products’ purchase, sales, revenues, profits, and remaining inventory in advance of any subsequent default judgment briefing.” Id. at 2 (cleaned up). Azurous, on the other hand, argued that while it was amenable to reviewing Kennedy’s proffered declaration and attached documents “as an initial step,” it was entitled to “at least some written discovery (interrogatories, document requests, and requests for

admissions) and at least one deposition . . . for a meaningful hearing under Fed. R. Civ. P. 55 to enter or effectuate judgment.” Id. at 1-2. On July 23, 2025, the Court held another telephone status conference to address the proper scope of default-related discovery. See [Dkt. 45]. After a discussion with counsel, the Court ordered Kennedy to provide its contemplated declaration and accompanying documents to Azurous, and authorized Azurous to

seek “limited, targeted supplemental discovery in aid of the Court’s future determination of damages” following Kennedy’s production of the declaration and documents. Id. The Court also directed the parties to meet and confer regarding “their positions on the extent of the supplemental discovery required in light of [Kennedy]’s production of the declaration and supporting documents.” Id. On August 29, 2025, the parties filed a joint status letter reporting that while Kennedy had produced the declaration and supporting documents, they were unable

to reach agreement regarding whether and to what extent further discovery is appropriate. [Dkt. 54.] The present dispute followed. Azurous argues that Kennedy’s declaration provided “only limited, hand-picked, self-serving information” and that Azurous should be permitted to request additional discovery regarding the “remedies [it] believes it is entitled to upon entry of the default.” [Dkt. 56] at 2. Specifically, Azurous seeks to serve fifteen document requests and twelve interrogatories in order “to ascertain[] the proper remedy in this case” consistent with “controlling law, factors [c]ourts consider, [ ] inquiries related to patent infringement, Lanham Act violations, and unfair

competition,” and to take a single deposition regarding the same. Id. at 2-5; [Dkts. 56-3, 56-4]. If this further discovery is not permitted, Azurous submits that “all inferences should be drawn in [Azurous]’s favor, and [Kennedy]’s selective, self-serving statements should be ignored.” [Dkt. 56] at 5. In response, Kennedy argues that no further discovery is appropriate, as the Federal Rules of Civil Procedure do not permit the post-default,

pre-default-judgment discovery that Azurous seeks, and in any event, the declaration and associated documents that Kennedy already produced provides relevant and sufficient information to aid the Court’s determination of damages on default judgment. [Dkt. 59] at 1-3. Kennedy further argues that Azurous’s “proposed discovery topics themselves extend beyond the type of minimal information on damages that could ever be appropriate for default discovery,” because the requests “are not targeted [ ] to simply gain relevant information, but

are the type of general discovery obligations that would force Kennedy” to undertake the costs and burdens associated with plenary discovery that it sought to avoid by requesting entry of its voluntary default in the first place. Id. at 3-5. * Federal Rules of Civil Procedure 16 and 26 frame the discovery process in federal civil litigation. Rule 26(f)(1) provides that “[e]xcept in a proceeding exempted from initial disclosure under Rule 26(a)(1)(B) or when the court orders otherwise, the parties must meet and confer as soon as practicable” to create a plan for discovery. Fed. R. Civ. P. 26(f)(1). Generally, parties “may not seek discovery from any source

before the parties have conferred as required by Rule 26(f),” unless “authorized by the[] [federal] rules, by stipulation, or by court order.” Fed. R. Civ. P. 26(d)(1). Accordingly, “[t]he Court has the discretion [ ] to grant leave to conduct discovery prior to the Rule 26(f) conference under Rule 26(d)(1).” Times Three Clothier, LLC v. Rack’s OffPrice, Civ. No. 22-3013 (MAH), 2022 WL 3053946, at *2 (D.N.J. Aug. 3, 2022). To determine whether expedited or early discovery should be permitted

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Azurous, Inc., d/b/a Cabeau v. Kennedy International, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/azurous-inc-dba-cabeau-v-kennedy-international-inc-njd-2025.