Goorin Bros., Inc. v. GoldStarHat LLC

District Court, N.D. California·Decided August 26, 2025·No. 3:24-cv-05579·Unknown

Opinion

GOORIN BROS., INC., Case No. 24-cv-05579-RS Plaintiff, v. ORDER GRANTING IN PART, DENYING IN PART MOTION FOR GOLDSTARHAT LLC, ENTRY OF DEFAULT JUDGMENT Defendant.

Plaintiff Goorin Bros., Inc. sued Defendant GoldStarHat LLC in August 2024, averring trademark and trade dress infringement as well as violations of the California Unfair Competition Law (“UCL”). A hat-maker, Plaintiff claims that Defendant sells competing hats online that feature Plaintiff’s trademark trapezoid design mark and copy Plaintiff’s trade dress, including non- functional elements of the “trucker” style and animal images centered within a square patch. Plaintiff seeks an injunction to restrain Defendant from using the design marks and trade dress as well as damages to the tune of $1.41 million, plus $1 million in punitive damages. Defendant having failed to appear or respond to the complaint, Plaintiff now moves for entry of default judgment. For the reasons explained below, the motion is granted in part and denied in part. II. BACKGROUND Plaintiff served Defendant with a summons and complaint in November 2024. Defendant has never appeared, responded, or made any attempt to engage in the legal process. Plaintiff Defendant. On December 31, 2024, the Clerk entered default against Defendant for failure to appear, answer, or otherwise plead to the complaint. That order of entry of default was served on Defendant on January 7, 2025. Under Federal Rule of Civil Procedure 55, entering a default judgment is a two-step process. Prior to entry of a default judgment, there must first be an entry of a default. Fed. R. Civ. P. 55. Only then may a district court, in its discretion, grant relief upon an application for default judgment. Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). In exercising such discretion, the court may consider: “(1) the possibility of prejudice to the plaintiff; (2) the merits of plaintiff's substantive claim; (3) the sufficiency of the complaint; (4) the sum of money at stake in the action; (5) the possibility of a dispute concerning material facts; (6) whether the default was due to excusable neglect; and (7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits.” Eitel v. McCool, 782 F.2d 1470, 1471–72 (9th Cir. 1986). To conduct this analysis, all factual allegations in the complaint are taken as true, except for those relating to damages. TeleVideo Sys. Inc. v. Heidenthal, 826 F.2d 915, 917–18 (9th Cir. 1987). Other competent evidence submitted by the moving party may be deemed admitted by the non- responding parties. See Shanghai Automation Instrument Co., v. Kuei, 194 F.Supp.2d 995, 1000 (N.D. Cal. 2001). A. Jurisdiction and Service A court must confirm that it has both subject matter and personal jurisdiction prior to assessing the merits of a default judgment. See In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999). It must also “ensure the adequacy of service on the defendant.” Produce v. Cal. Harvest Healthy Foods Ranch Mkt., No. 11-cv-4814, 2012 WL 259575, at *2 (N.D. Cal. Jan. 27, 2012). Subject matter jurisdiction over Plaintiff’s trademark and trade dress claims exists pursuant to 28 U.S.C. § 1331 because they are questions of federal law. Supplemental jurisdiction over Plaintiff’s state and common law claims exists under 28 U.S.C. § 1367(a) because they arise out of the same case or controversy as Plaintiff’s federal claims. Personal jurisdiction is likewise satisfied here, where Defendant has sold at least one “physical product via an interactive website and caused that product to be delivered to a forum state.” Briskin v. Shopify, Inc., 135 F.4th 739, 755 (9th Cir. 2025) (en banc) (citing Herbal Brands, Inc. v. Photoplaza, Inc., 72 F.4th 1085, 1095 (9th Cir. 2023)); see also Goorin Decl., Dkt. No. 16-2, ¶ 10 (describing how Plaintiff purchased and received a hat from Gold Star’s website). Such sales “must occur as part of the defendant’s regular course of business,” see Herbal Brands, 72 F.4th at 1094, which seems to be the case here, given that Gold Star is in the business of selling hats online. Although Plaintiff has demonstrated that only one product was distributed in California, there is no reason to doubt that contact was Gold Star’s “own choice and not ‘random, isolated, or fortuitous,’” even granted the fact that Gold Star “cultivates a ‘nationwide audience[] for commercial gain.” Briskin, 135 F.4th at 758 (first quoting Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 592 U.S. 351, 359 (2001), then quoting Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 1218, 1223 (9th Cir. 2011)). Service was also proper. Rule 4(e) of the Federal Rules of Civil Procedure governs the methods by which service may be effectuated. Rule 4(e)(1) permits service by any means allowed by the law of the state in which the case is pending, or the state in which the defendant resides. Rule 4(e)(2) permits service by (1) personal delivery of the summons and complaint to the defendant, (2) leaving a copy of each with a person at the defendant's residence, or (3) leaving a copy of each with an agent authorized to accept service. California law also permits service on a corporation by “delivering a copy of the summons and the complaint ... to the person designated as agent for service of process.” Cal. Civ. Proc. Code § 416.10(a). Following a stake-out by hired process servers, Plaintiff served German Almonte, Defendant’s registered agent for service of process, on November 9, 2024, and filed the proof of service form on November 13, 2024. B. The Eitel factors In this matter, certain Eitel factors are beyond dispute. The default does not appear to have arisen due to excusable neglect, given the proper service that Plaintiff conducted and Defendant’s apparent unwillingness to participate in this lawsuit. Possibility of prejudice to Plaintiff is also high considering the alleged misuse of Plaintiff’s trademark and trade dress; absent a default judgment, Defendant’s refusal to engage with Plaintiff’s claims would leave Plaintiff with no means of redressing the alleged violations. Other Eitel factors require closer examination. 1. Merits of Substantive Claims and Sufficiency of Complaint “Under an Eitel analysis, the merits of Plaintiff’s substantive claims and the sufficiency of the complaint are often analyzed together. These two factors require that . . . allegations ‘state a claim on which the [plaintiff] may recover.’” Nat’l Council of United States, Soc’y of St. Vincent De Paul, Inc. v. Del Norte Council of Soc’y of St. Vincent De Paul, No. 23-cv-01556-RS, 2024 WL 3924555, at *3 (N.D. Cal. Aug. 23, 2024) (quoting Danning v. Lavine,

Goorin Bros., Inc. v. GoldStarHat LLC, (N.D. Cal. 2025).

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