Cozy, Inc. v. Dorel Juvenile Group, Inc.

District Court, D. Massachusetts·Decided July 9, 2024·No. 1:21-cv-10134·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

COZY, INC., ) ) Plaintiff, ) v. ) CIVIL ACTION ) NO. 21-10134-JGD DOREL JUVENILE GROUP, INC., ) ) Defendant. )

MEMORANDUM OF DECISION AND ORDER ON MOTION FOR ENTRY OF DEFAULT JUDGMENT IN FAVOR OF DOREL JUVENILE GROUP, INC. ON PLAINTIFF’S COMPLAINT

July 9, 2024 I. INTRODUCTION On January 27, 2021, Cozy, Inc. (“Cozy”) filed a complaint against Dorel Juvenile Group, Inc. (“Dorel”) alleging that Dorel’s line of child car seats with Air Protect® technology violated four of Cozy’s patents: United States Patent Nos. 7,156,416 (the “’416 Patent”); 8,136,835 (the “’835 Patent”); 9,902,298 (the “’298 Patent”); and 9,669,739 (the “’739 Patent”) (collectively the “Asserted Patents”). (Complaint for Patent Infringement (“Compl.”) (Docket No. 1) at ¶¶ 1, 19-25). In response, Dorel denied liability and raised various equitable defenses including, inter alia, defenses of non-infringement (first defense); invalidity (second defense); equitable estoppel (fifth defense); prosecution laches (sixth defense); and unclean hands (seventh defense). (First Amended Answer (“Ans.”) (Docket No. 58) at 23-28). In addition, Dorel asserted two counterclaims of inequitable conduct against Cozy, the first for pattern and practice of misrepresentation to the U.S. Patent and Trademark Office (“USPTO” or “PTO”) (first count) and the second for failure to disclose prior and intervening art (second count). (Id. at 35-40). Dorel was subsequently permitted to amend its answer to assert three additional counterclaims alleging inequitable conduct for failure to disclose DE ‘588 reference as prior art in connection

with the prosecution of the ‘298 and ‘739 Patents (third count); inequitable conduct for failure to disclose the Horkey Patent reference as prior art while prosecuting the ‘835 Patent (fourth count); and inequitable conduct and/or unclean hands based on a pattern and practice of deceptive conduct (fifth count). (Second Amended Answer (“Sec. Ans.”) (Docket No. 370) at 36- 53).1

After extensive discovery and motion practice, including dispositive motions and claim construction rulings, Cozy’s counsel moved to withdraw on November 16, 17 & 20, 2023, citing a breakdown in the attorney-client relationship as well as Cozy’s failure to pay counsels’ fees and expenses as agreed. (Docket Nos. 412, 413, 416). This District’s Local Rule 83.5.5(c) requires corporations, such as Cozy, to be represented by counsel in order to proceed in any litigation. Cozy’s principal, Dr. Arjuna I. Rajasingham, was advised, and acknowledged on

numerous occasions, that as an entity Cozy could not proceed without legal representation, and that the failure to obtain successor counsel could result in a default judgment being entered against Cozy.2

1 The counterclaims (“Counterclaims”) begin on page 28 of Dorel’s First Amended Answer (Docket No. 58) as well as in its Second Amended Answer (Docket No. 370). Citations to the first and second counterclaims will refer to its original counterclaims in its First Amended Answer and citations to the third, fourth, and fifth counterclaims will be to the Second Amended Answer.

2 See, e.g., Docket Nos. 415 (11/20/23 Scheduling Order requiring Dr. Rajasingham to confirm Cozy’s need to obtain counsel); 426-12 (transcript of hearing on 11/17/23 discussing how to go forward in the absence of counsel); 429-1 (12/1/23 Affidavit of Dr. Rajasingham acknowledging Cozy understands it needs to obtain successor counsel); 431 (12/5/23 Electronic Order that court will defer ruling on motions to withdraw until January 8, 2024 to allow Cozy time to find successor counsel); 437 (12/13/23 Electronic After a number of hearings and extensions, on January 11, 2024, this court issued a Memorandum of Decision and Order (Docket No. 455) and allowed the motions to withdraw. As the court noted therein, action taken throughout the litigation to date had “raised serious

ethical questions including, but not limited to, the potential spoliation of evidence and fraud.” (Id. at 3-4). The court then granted Cozy an additional twenty-one (21) days to find successor counsel, after which Dorel was authorized to file a motion for default. (Docket No. 456). Dr. Rajasingham requested and received several extensions. (E.g., Docket Nos. 460, 470, 483). Following additional motion practice, mostly related to Cozy’s former counsel’s potential

liability for sanctions and/or damages in this litigation, on April 5, 2024, a default was entered against Cozy for failure to plead or otherwise defend pursuant to Fed. R. Civ. P. 55(a). (Docket No. 496). This matter is presently before on the court on Dorel’s Motion for Entry of Default Judgment (Docket No. 473) brought pursuant to Fed. R. Civ. P. 41, 54, and 55, by which Dorel is seeking entry of judgment in its favor on (1) all counterclaims asserted by Dorel against Cozy, and (2) all patent infringement claims asserted by Cozy against Dorel. (See Dorel’s

Memorandum in Support of Motion (Docket No. 474)). On May 21, 2024, the court allowed the motion of attorneys from the law firm of Spencer Fane LLP for leave to appear pro hac vice on behalf on Cozy. (Docket No. 553). However, to date only local counsel, Christian Samito, has entered an appearance and he has notified the court that he will not represent Cozy substantively absent an appearance by, and

Order allowing 14 days from date Cozy obtains successor counsel for Cozy to respond to Dorel’s motion to dismiss); and 444-1 (1/4/2024 letter from Dr. Rajasingham acknowledging that Cozy cannot proceed without counsel). In addition, both Dorel and Dr. Rajasingham opposed the motions to withdraw and there was extensive motion practice. limited to the same scope of representation as, counsel from Spencer Fane. (See Docket No. 537). For their part, counsel from Spencer Fane have notified the court that they “intend to file their notices of appearance shortly after the conclusion of the ongoing evidentiary hearing” on

Dorel’s motion for sanctions (Docket No. 542) and motion to have the case declared exceptional (Docket No. 477) and that they would not represent Cozy at those hearings. (See Docket No. 598). They further notified the court that counsel’s appearance will be limited to defending against Dorel’s counterclaims for inequitable conduct and related issues.3 (Docket Nos. 598, 537, 538).

The evidentiary hearings have concluded, and Cozy did not appear and defend against Dorel’s motions. The consequences of such failure to appear shall be addressed in connection with the court’s ruling on the motions if necessary. For present purposes, however, and to assist in defining the issues remaining in dispute, it is appropriate for the court to rule on Dorel’s Motion for Default Judgment to the extent that it relates to Cozy’s affirmative case. For the reasons detailed herein, Dorel’s Motion is allowed as to Cozy’s affirmative case. “While a grant

of default judgment is a ‘drastic sanction that runs contrary to the goals of resolving cases on the merits and avoiding harsh or unfair results,’ the entry of a default judgment ‘plays a constructive role in maintaining the orderly and efficient administration of justice.’” Simmons v.

3 Counsel for Spencer Fane have also indicated that if the court agrees to try Dorel’s equitable claims first, and Cozy defeats Dorel’s inequitable conduct claims, then “both Cozy and Spencer Fane have contemplated that a new Notice of Appearance will be entered for the remainder of the case[.]” (Docket No. 538 at ¶ 8).

Free access — add to your briefcase to read the full text and ask questions with AI

Cozy, Inc. v. Dorel Juvenile Group, Inc., (D. Mass. 2024).

Cozy, Inc. v. Dorel Juvenile Group, Inc. (Cozy, Inc. v. Dorel Juvenile Group, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Ruiz-Rosa v. Rivera-Gonzalez
485 F.3d 150 (First Circuit, 2007)
Remexcel Managerial Consultants, Inc. v. Arlequin
583 F.3d 45 (First Circuit, 2009)
Centricut, Llc v. The Esab Group, Inc.
390 F.3d 1361 (Federal Circuit, 2004)
Therasense, Inc. v. Becton, Dickinson and Co.
649 F.3d 1276 (Federal Circuit, 2011)
Gilead Sciences, Inc. v. Merck & Co., Inc.
888 F.3d 1231 (Federal Circuit, 2018)
Alli v. United States
93 Fed. Cl. 172 (Federal Claims, 2010)
Securities & Exchange Commission v. Esposito
260 F. Supp. 3d 79 (D. Massachusetts, 2017)
Universitas Education, LLC v. Granderson
98 F.4th 357 (First Circuit, 2024)