GS Holistic, LLC v. Ashes Plus Nine

CourtDistrict Court, N.D. California
DecidedMay 15, 2024
Docket4:22-cv-07101
StatusUnknown

This text of GS Holistic, LLC v. Ashes Plus Nine (GS Holistic, LLC v. Ashes Plus Nine) 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
GS Holistic, LLC v. Ashes Plus Nine, (N.D. Cal. 2024).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 GS HOLISTIC, LLC, Case No. 22-cv-07101-YGR (LJC)

8 Plaintiff, ORDER TO SHOW CAUSE WHY 9 v. MOTION FOR DEFAULT JUDGMENT SHOULD NOT BE DENIED 10 ASHES PLUS NINE, et al., Re: ECF No. 57 Defendants. 11

12 13 The Court has referred Plaintiff GS Holistic, LLC’s (GS Holistic) amended Motion for 14 Default Judgment (ECF No. 57) to the undersigned magistrate judge for a report and 15 recommendation. The undersigned has identified potential deficiencies in the service of process 16 completed on Defendants Ashes Plus Nine d/b/a Smoke Shop Ashes (Ashes Plus Nine) and 17 Gaizan N Alreyashi, in the merits of GS Holistic’s substantive claims and the sufficiency of the 18 Complaint, and in the relief sought by GS Holistic. For the reasons discussed below, GS Holistic 19 is ORDERED TO SHOW CAUSE why the amended Motion for Default Judgment should not be 20 denied, by filing a supplemental brief and accompanying evidence addressing the issues noted in 21 this Order no later than May 29, 2024. After GS Holistic files its response, the undersigned will 22 issue a report and recommendation regarding the disposition of GS Holistic’s amended Motion for 23 Default Judgment. 24 I. BACKGROUND 25 The undersigned previously summarized the events giving rise to GS Holistic’s claims in 26 her Order for Reassignment to a District Judge and Report and Recommendation Re: Motion for 27 Default Judgment (hereinafter, First Report and Recommendation), dated August 25, 2023, and 1 incorporates that background by reference here. See ECF No. 45 at 2.1 The First Report and 2 Recommendation recommended that GS Holistic’s original Motion for Default Judgment (ECF 3 No. 32) be denied on several grounds: (1) The record showed several deficiencies as to the service 4 of process completed on both Defendants; (2) GS Holistic failed to demonstrate that Eitel factors 5 two and three, which concern the merits of its substantive claims and the sufficiency of the 6 Complaint, supported entry of default judgment against Defendants; and (3) GS Holistic’s requests 7 for statutory damages, costs, a permanent injunction, and other equitable relief were inadequately 8 supported by the evidence. Id. at 4–12. 9 The case was subsequently reassigned to Judge Yvonne Gonzalez Rogers. ECF No. 46. 10 GS Holistic filed a response to the First Report and Recommendation on September 8, 2023. ECF 11 No. 49. It requested, if the Court was inclined to deny the original Motion for Default Judgment, 12 that the denial be without prejudice and that GS Holistic be allowed to file an amended motion 13 curing the deficiencies addressed in the First Report and Recommendation. Id. at 2. On 14 September 21, 2023, the Court adopted the First Report and Recommendation, denied the First 15 Motion for Default Judgment without prejudice, and granted GS Holistic’s request to file an 16 amended motion for default judgment. ECF No. 50. 17 On November 3, 2023, GS Holistic filed an Amended Proof of Service as to Defendant 18 Ashes Plus Nine. ECF No. 52. The Amended Proof of Service includes a Declaration of 19 Reasonable Diligence from the process server, dated February 14, 2023 (the date service was 20 originally completed on Ashes Plus Nine), which was not included with the first Proof of Service. 21 Id. at 4. GS Holistic filed a Motion for Entry of Default as to Ashes Plus Nine on December 8, 22 2023, and the Clerk entered default against Ashes Plus Nine on December 11, 2023. ECF Nos. 23 54, 55. GS Holistic filed its amended Motion for Default Judgment on December 15, 2023, which 24 was referred to the undersigned on February 16, 2024. ECF Nos. 57, 63. 25 II. DISCUSSION 26 Motions for default judgment generally fall within the discretion of the district court, as 27 1 guided by the factors that the Ninth Circuit identified in Eitel v. McCool, 782 F.2d 1470, 1471–72 2 (9th Cir. 1986). The undersigned will address those factors and other relevant considerations in 3 more detail in a report and recommendation following GS Holistic’s response. This Order to 4 Show Cause turns specifically on the deficiencies identified by the undersigned in the First Report 5 and Recommendation with respect to: (1) the service of process completed on both Defendants; 6 (2) Eitel factors two and three; and (3) GS Holistic’s request for statutory damages, costs, a 7 permanent injunction, and other equitable relief. 8 A. Service of Process 9 The First Report and Recommendation found that service of process as to both Defendants 10 was deficient in part because the address where service was completed is different than the address 11 listed for Ashes Plus Nine and Defendant Gaizan N. Alreyashi with the California Secretary of 12 State. ECF No. 45 at 5. The Proofs of Service listed their address as “2317 Stevens Creek Blvd, 13 Unit 10, San Jose, CA 95128,” while the California Secretary of State’s website lists their address 14 as “2319 Stevens Creek Blvd, San Jose, CA 95128.” Id. In support of its amended Motion for 15 Default Judgment, GS Holistic has attached screenshots from Google Maps showing Ashes Plus 16 Nine’s business address as 2317 Stevens Creek Blvd, Unit 10, while 2319 Stevens Creek Blvd is 17 shown as belonging to “Xtreme Wheels N Deals,” a tire repair shop. ECF No. 57-2. The 18 screenshots show that the two addresses are associated with a shopping center where several 19 businesses are located. See id. GS Holistic also points to the process server’s Declaration of 20 Reasonable Diligence in Mr. Alreyashi’s Proof of Service. ECF No. 18. The process server states 21 that he spoke to an individual at 2317 Stevens Creek Blvd, Unit 10, who told him that they were 22 Mr. Alreyashi’s employee, and that Mr. Alreyashi resided there but was not available at that time. 23 Id. at 4. 24 As an initial matter, GS Holistic has not properly authenticated the Google Maps 25 screenshots pursuant to Federal Rule of Evidence 901.2 Authentication requires “evidence 26 2 GS Holistic is not exempt from compliance with admissibility standards (as set forth in the 27 Federal Rules of Evidence) as to evidentiary exhibits it wishes the Court to consider in support of 1 sufficient to support a finding that the matter in question is what its proponent claims.” Fed. R. 2 Evid. 901(a). “Information from the Internet does not necessarily bear an indicia of reliability and 3 therefore must be properly authenticated by affidavit.” In re Easysaver Rewards Litig., 737 4 F.Supp.2d 1159, 1168 (S.D. Cal. 2010); In re Homestore.com, Inc. Securities Litig., 347 5 F.Supp.2d 769, 782–83 (C.D. Cal. 2004) (holding that “[p]rintouts from a web site [sic] do not 6 bear the indicia of reliability demanded for other self-authenticating documents under Fed. R. 7 Evid. 902[ ]” and thus were improperly authenticated when unsupported by a declaration by 8 someone with personal knowledge, even when the printouts bore a “URL address and date 9 stamp.”). Here, there is no declaration indicating who took the screenshots, “when or how they 10 did so, or on what basis they can be sure that the printouts accurately reflect the contents” of the 11 Google Maps website. X17, Inc. v. Lavandeira, No. CV06-7608-VBF(JCX), 2007 WL 790061, at 12 *2 (C.D. Cal. Mar. 8, 2007). 13 Nor did GS Holistic request that the Court take judicial notice of Google Maps as a 14 “source[] whose accuracy cannot reasonably be questioned” pursuant to Federal Rule of Evidence 15 201(b).

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GS Holistic, LLC v. Ashes Plus Nine, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gs-holistic-llc-v-ashes-plus-nine-cand-2024.