Goorin Bros., Inc. v. GoldStarHat LLC

CourtDistrict Court, N.D. California
DecidedAugust 26, 2025
Docket3:24-cv-05579
StatusUnknown

This text of Goorin Bros., Inc. v. GoldStarHat LLC (Goorin Bros., Inc. v. GoldStarHat LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 NORTHERN DISTRICT OF CALIFORNIA 9 GOORIN BROS., INC., 10 Case No. 24-cv-05579-RS Plaintiff, 11 v. ORDER GRANTING IN PART, 12 DENYING IN PART MOTION FOR GOLDSTARHAT LLC, ENTRY OF DEFAULT JUDGMENT 13 Defendant. 14

15 I. INTRODUCTION 16 Plaintiff Goorin Bros., Inc. sued Defendant GoldStarHat LLC in August 2024, averring 17 trademark and trade dress infringement as well as violations of the California Unfair Competition 18 Law (“UCL”). A hat-maker, Plaintiff claims that Defendant sells competing hats online that 19 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. 20 Plaintiff seeks an injunction to restrain Defendant from using the design marks and trade dress as 21 well as damages to the tune of $1.41 million, plus $1 million in punitive damages. Defendant 22 having failed to appear or respond to the complaint, Plaintiff now moves for entry of default 23 judgment. For the reasons explained below, the motion is granted in part and denied in part. 24 II. BACKGROUND 25 Plaintiff served Defendant with a summons and complaint in November 2024. Defendant 26 has never appeared, responded, or made any attempt to engage in the legal process. Plaintiff 27 1 Defendant. On December 31, 2024, the Clerk entered default against Defendant for failure to 2 appear, answer, or otherwise plead to the complaint. That order of entry of default was served on 3 Defendant on January 7, 2025. 4 III. LEGAL STANDARD 5 Under Federal Rule of Civil Procedure 55, entering a default judgment is a two-step 6 process. Prior to entry of a default judgment, there must first be an entry of a default. Fed. R. Civ. 7 P. 55. Only then may a district court, in its discretion, grant relief upon an application for default 8 judgment. Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). In exercising such discretion, 9 the court may consider: “(1) the possibility of prejudice to the plaintiff; (2) the merits of plaintiff's 10 substantive claim; (3) the sufficiency of the complaint; (4) the sum of money at stake in the action; 11 (5) the possibility of a dispute concerning material facts; (6) whether the default was due to 12 excusable neglect; and (7) the strong policy underlying the Federal Rules of Civil Procedure 13 favoring decisions on the merits.” Eitel v. McCool, 782 F.2d 1470, 1471–72 (9th Cir. 1986). To 14 conduct this analysis, all factual allegations in the complaint are taken as true, except for those 15 relating to damages. TeleVideo Sys. Inc. v. Heidenthal, 826 F.2d 915, 917–18 (9th Cir. 1987). 16 Other competent evidence submitted by the moving party may be deemed admitted by the non- 17 responding parties. See Shanghai Automation Instrument Co., v. Kuei, 194 F.Supp.2d 995, 1000 18 (N.D. Cal. 2001). 19 IV. DISCUSSION 20 A. Jurisdiction and Service 21 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 22 must also “ensure the adequacy of service on the defendant.” Produce v. Cal. Harvest Healthy 23 Foods Ranch Mkt., No. 11-cv-4814, 2012 WL 259575, at *2 (N.D. Cal. Jan. 27, 2012). 24 Subject matter jurisdiction over Plaintiff’s trademark and trade dress claims exists pursuant 25 to 28 U.S.C. § 1331 because they are questions of federal law. Supplemental jurisdiction over 26 Plaintiff’s state and common law claims exists under 28 U.S.C. § 1367(a) because they arise out of 27 1 the same case or controversy as Plaintiff’s federal claims. Personal jurisdiction is likewise 2 satisfied here, where Defendant has sold at least one “physical product via an interactive website 3 and caused that product to be delivered to a forum state.” Briskin v. Shopify, Inc., 135 F.4th 739, 4 755 (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 5 and received a hat from Gold Star’s website). Such sales “must occur as part of the defendant’s 6 regular course of business,” see Herbal Brands, 72 F.4th at 1094, which seems to be the case here, 7 given that Gold Star is in the business of selling hats online. Although Plaintiff has demonstrated 8 that only one product was distributed in California, there is no reason to doubt that contact was 9 Gold Star’s “own choice and not ‘random, isolated, or fortuitous,’” even granted the fact that Gold 10 Star “cultivates a ‘nationwide audience[] for commercial gain.” Briskin, 135 F.4th at 758 (first 11 quoting Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 592 U.S. 351, 359 (2001), then quoting 12 Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 1218, 1223 (9th Cir. 2011)). 13 Service was also proper. Rule 4(e) of the Federal Rules of Civil Procedure governs the 14 methods by which service may be effectuated. Rule 4(e)(1) permits service by any means allowed 15 by the law of the state in which the case is pending, or the state in which the defendant resides. 16 Rule 4(e)(2) permits service by (1) personal delivery of the summons and complaint to the 17 defendant, (2) leaving a copy of each with a person at the defendant's residence, or (3) leaving a 18 copy of each with an agent authorized to accept service. California law also permits service on a 19 corporation by “delivering a copy of the summons and the complaint ... to the person designated as 20 agent for service of process.” Cal. Civ. Proc. Code § 416.10(a). Following a stake-out by hired 21 process servers, Plaintiff served German Almonte, Defendant’s registered agent for service of 22 process, on November 9, 2024, and filed the proof of service form on November 13, 2024. 23 B. The Eitel factors 24 In this matter, certain Eitel factors are beyond dispute. The default does not appear to have 25 arisen due to excusable neglect, given the proper service that Plaintiff conducted and Defendant’s 26 apparent unwillingness to participate in this lawsuit. Possibility of prejudice to Plaintiff is also 27 high considering the alleged misuse of Plaintiff’s trademark and trade dress; absent a default 1 judgment, Defendant’s refusal to engage with Plaintiff’s claims would leave Plaintiff with no 2 means of redressing the alleged violations. 3 Other Eitel factors require closer examination. 4 1. Merits of Substantive Claims and Sufficiency of Complaint 5 “Under an Eitel analysis, the merits of Plaintiff’s substantive claims and the sufficiency of 6 the complaint are often analyzed together. These two factors require that . . . allegations ‘state a 7 claim on which the [plaintiff] may recover.’” Nat’l Council of United States, Soc’y of St. Vincent 8 De Paul, Inc. v.

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Bluebook (online)
Goorin Bros., Inc. v. GoldStarHat LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goorin-bros-inc-v-goldstarhat-llc-cand-2025.