Celine SA v. THE PARTNERSHIPS AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE A

CourtDistrict Court, N.D. Illinois
DecidedMarch 5, 2025
Docket1:24-cv-06208
StatusUnknown

This text of Celine SA v. THE PARTNERSHIPS AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE A (Celine SA v. THE PARTNERSHIPS AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE A) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Celine SA v. THE PARTNERSHIPS AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE A, (N.D. Ill. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

Celine S.A. ) ) Plaintiff, ) No. 24 C 6208 ) v. ) Judge Robert W. Gettleman THE PARTNERSHIPS and ) UNICORPORATE ASSOCIATIONS ) IDENTIFIED ON SCHEDULE “A” ) ) Defendants. )

MEMORANDUM OPINION & ORDER On November 14, 2024, this court entered a final judgment order against a group of approximately 60 defaulting defendants, including defendant Butaby. (Doc. 42). Seven weeks later, Butaby filed a motion to vacate the default judgment against it under Fed. R. Civ. P. 55(c) and 60(b). (Doc. 44). Butaby also filed a motion to modify the preliminary injunction that this court entered against Butaby and the other defaulting defendants on October 8, 2024. (Docs. 34, 47). In that same motion (Doc. 47), Butaby requested leave to file supplemental documentary evidence under seal. This memorandum opinion and order will address both motions. For the reasons stated below, the court grants Butaby’s motion to vacate the default judgment against it. (Doc. 44). Butaby’s motion for miscellaneous relief (Doc. 47) is granted. The court vacates the preliminary injunction against Butaby and grants its motion to file supplemental documentary evidence under seal.

BACKGROUND Plaintiff Celine SA is a French luxury brand that sells a diverse portfolio of men’s and women’s apparel, fashion accessories, and leather goods. Plaintiff incorporates a variety of registered trademarks in connection with its marketing of its products.

Plaintiff originally filed a two-count complaint against 62 online seller defendants. Count I alleges trademark infringement and counterfeiting in violation of 15 U.S.C. § 1114. Count II alleges false designation of origin in violation of 15 U.S.C. § 1125 (a). Essentially, plaintiff alleges that the online seller defendants sell counterfeit goods bearing plaintiff’s trademarks.

Plaintiff moved for a temporary restraining order, which this court granted on September 10, 2024. Plaintiff then moved to convert that temporary restraining order into a preliminary injunction. This court granted that motion on October 8, 2024. According to the summons returned executed by plaintiff, plaintiff served all 62 online seller defendants by email on September 30, 2024. This email “attached the Summons, Complaint, and TRO and by

publishing those documents on a website linked in the email.” According to plaintiff, it also served defendants with its motion for preliminary injunction and motion for default judgment, ostensibly by the same means. Butaby is one of the 62 online seller defendants identified in the complaint. Plaintiff alleges that Butaby sells counterfeit sunglasses bearing plaintiff’s registered trademarks. Butaby denies any use of plaintiff’s registered trademarks.

LEGAL STANDARD According to Fed. R. Civ. P. 55 (c): “The court may set aside an entry of default for good cause, and it may set aside a final default judgment under Rule 60(b).” A district court enjoys “great latitude in making a Rule 60(b) decision because that decision ‘is discretion piled on

discretion.’” Bakery Machinery & Fabrication Inc., v. Traditional Baking, Inc., 570 F.3d 845, 848 (7th Cir. 2009) (quoting Swaim v. Moltan Co., 73 F.3d 711, 722 (7th Cir. 1996)). Generally, “relief from a judgment under Rule 60(b) is an extraordinary remedy and is granted only in exceptional circumstances.” Reinsurance Company of America, Inc. v. Administratia Asigurarilor de Stat, 902 F.2d 1275, 1277 (7th Cir.1990).

DISCUSSION A. Article 15 of the Hague Convention

Butaby argues that the default judgment was void under Article 15 of the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil and Commercial Matters (“Hague Convention”). 20 U.S.T. 361. According to Butaby, its address was known or at least possible to obtain with reasonable diligence. Therefore, the Hague Convention applies to it. See Peanuts Worldwide LLC v. Partnerships and Unincorporated Associations Identified on Schedule “A”, 347 F.R.D. 316, 327-28 (N.D. Ill. 2024) (explaining that if a foreign defendant has at least one known address, then the Hague Convention applies).

Butaby argues that the Hague Convention renders the default judgment against it void for two reasons. First, Butaby argues that e-mail service is not provided for in the Convention. Second, Butaby argues that under Article 15(b), a default judgment cannot be issued until six months after the transmission of the service document. In this case, plaintiff states that email service was sent on September 30, 2024, meaning that a default judgment could not be entered in accord with Article 15(b) until March 30, 2025. As mentioned above, default judgment was

entered on November 14, 2024. Plaintiff responds that service by email is not prohibited by the Hague Convention or otherwise. Plaintiff argues that courts in this district, and in the majority of others, have repeatedly upheld the validity of e-mail service, especially in the cases of foreign defendants engaged in online commercial activity. Plaintiff argues that Butaby was clearly aware that its

accounts were frozen and points to Butaby’s admission that it attempted to resolve the matter with plaintiff within two weeks following entry of the default judgment. Plaintiff generally characterizes Butaby’s arguments about the specifications of the Article 15 of the Hague convention as a “meritless eleventh-hour plea.” Plaintiff does not contest that Butaby’s address was known or knowable, nor does plaintiff provide a substantive response to Butaby’s argument raising the six-month provision of Article 15(b).

On the issue of whether email service is proper, the court agrees with plaintiff. As this court held in Ouyenic Ltd. V. Alucy, No. 20 C 2490, 2021 WL 2633317, at *3 (N.D. Ill. June 25, 2021), “courts have routinely upheld service by email in situations similar to the instant case.” Here, the court authorized email service under Rule 4(f)(3) on September 10, 2024 (Doc. 23). Despite Butaby’s invitation for this court to revisit its position on the issue, it declines to do so.

On the issue of whether the default judgment order complied with the Article 15(b) of the Hague Convention, the court agrees with Butaby. Plaintiff offered no substantive response to this argument. Article 15 limits “the circumstances in which a default judgment may be entered against a defendant who had to be served abroad and did not appear.” Volkswagenwerk Aktiengesellschaft v. Schlunk, 486 U.S. 694, 699 (1988). The relevant text of Article 15 is quoted below:

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Celine SA v. THE PARTNERSHIPS AND UNINCORPORATED ASSOCIATIONS IDENTIFIED ON SCHEDULE A, Counsel Stack Legal Research, https://law.counselstack.com/opinion/celine-sa-v-the-partnerships-and-unincorporated-associations-identified-on-ilnd-2025.