Hassell Free Plumbing LLC v. Wheeler

CourtDistrict Court, N.D. Texas
DecidedMarch 25, 2021
Docket3:20-cv-01712
StatusUnknown

This text of Hassell Free Plumbing LLC v. Wheeler (Hassell Free Plumbing LLC v. Wheeler) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hassell Free Plumbing LLC v. Wheeler, (N.D. Tex. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

HASSELL FREE PLUMBING, LLC, § § Plaintiff, § v. § Civil Action No. 3:20-CV-1712-K § MICHAEL B. WHEELER d/b/a § HASSLE FREE PLUMBING, § § Defendant. §

MEMORANDUM OPINION AND ORDER Before the Court is Plaintiff Hassell Free Plumbing, LLC’s Amended Combined Request for Clerks [sic] Entry of Default and Motion for Default Judgment (Doc. No. 22) and Brief in Support (Doc. No. 23) (the “Motion”), filed on February 26, 2021, against Defendant Michael B. Wheeler d/b/a/ Hassle Free Plumbing. After careful consideration of the Motion, the supporting appendix, the relevant portions of the record, and the applicable law, the Court GRANTS the Motion. I. Factual and Procedural Background On June 6, 2020, Plaintiff Hassell Free Plumbing, LLC (“Plaintiff”) initiated this action against Defendant Michael B. Wheeler d/b/a/ Hassle Free Plumbing (“Defendant”), alleging a federal claim under the Lanham Act and state claims, including trademark infringement, unfair competition, and trademark dilution. Doc. No. 1. Plaintiff has since abandoned its dilution of trademark rights claim. Doc. No. 22 at 1. Plaintiff has owned and operated its plumbing business since at least December 31, 1987 and has used the HASSELL FREE PLUMBING mark in connection with its

plumbing services continuously the entire time. Doc. No. 1 at 2-3; Doc. No. 23 at 7. Plaintiff’s HASSELL FREE PLUMBING trademark was registered with the Texas Secretary of State’s Office on May 11, 2020 and has the Texas trademark Registration Number 803590242. Doc. No. 11-3, Ex. 2 at 1-2. Defendant has been using the HASSLE FREE PLUMBING mark since at least

July 3, 2019. Doc. No. 1 at 3-4; Doc. No. 1-5, Ex. 3; Doc. 2-7, Ex. 5. Defendant’s mark is phonetically identical to Plaintiff’s trademark and both businesses are associated with plumbing services. By way of exhibits and affidavits, Plaintiff presented evidence of actual customer confusion between Defendant and Plaintiff because of Defendant’s

mark. Doc. No. 1 at 4-5, ¶¶ 14-17; Doc 1-12, Ex. 10 at 2-6, ¶¶ 5-14; Doc. No. 11-4, Ex. 3 at 1-5, ¶¶ 6-16. Defendant has failed to answer or otherwise respond to the Complaint. Plaintiff filed its Amended Combined Request for the Clerks [sic] Entry of Default and Motion

for Default Judgment (Doc. No. 22) and Brief in Support (Doc. No. 23). On March 1, 2021, the Clerk of the Court entered default against Defendant. Doc. No. 24. Because the Clerk found Defendant in default, the Court’s determination of whether entry of a default judgment should follow is ripe for consideration. Once the procedural prerequisites for entering default judgment are met, the Court may consider the request

for a permanent injunction and reasonable attorneys’ fees and costs. II. Legal Standard Federal Rule of Civil Procedure 55 governs applications for default and default

judgment. FED. R. CIV. P. 55. Three steps are required to obtain a default judgment: (1) default by the defendant; (2) entry of default by the Clerk’s office; and (3) entry of a default judgment. See N.Y. Life Ins. Co. v. Brown, 84 F.3d 137, 141 (5th Cir. 1996). A default occurs when a defendant has failed to plead or otherwise respond within the time required by the Federal Rules of Civil Procedure. Id. (citing FED. R. CIV. P. 55(a)).

After the entry of default, a plaintiff may apply to the court for a default judgment. Id. Default judgment is a drastic remedy, resorted to only in extreme situations. Sun Bank of Ocala v. Pelican Homestead & Sav. Ass’n, 874 F.2d 274, 276 (5th Cir. 1989). However, it is a remedy generally committed to the discretion of the district

court. Mason v. Lister, 562 F.2d 343, 345 (5th Cir. 1977) (citing 10A Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 2685 (4th ed.)). A default judgment “must be ‘supported by well-pleaded allegations’ and must have ‘a sufficient basis in the pleadings.’” Wooten v. McDonald Transit Assoc., Inc., 788 F.3d 490,

498 (5th Cir. 2015) (quoting Nishimatsu Constr. Co. v. Hou. Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)). The well-pleaded allegations in the complaint are assumed to be true. Nishimatsu, 515 F.2d at 1206. In determining whether a default judgment should be entered, the Court considers (1) whether the entry of default judgment is procedurally warranted; (2)

whether there is a sufficient basis in the pleadings for the judgment; and (3) the relief, if any, to which the plaintiff is entitled. MetroPCS v. Mohammed, No. 3:16-CV-1946-L- BK, 2017 WL 2590108, at *2 (N.D. Tex. Apr. 24, 2017), report and recommendation

adopted, No. 3:16-CV-1946-L, 2017 WL 2579040 (N.D. Tex. June 14, 2017) (Lindsay, J.) (citing United States v. 1998 Freightliner, 548 F. Supp. 2d 381, 384 (W.D. Tex. 2008)). The Fifth Circuit looks to the following six factors in determining whether default judgment is procedurally warranted: (1) whether material issues of fact are at

issue; (2) whether there has been substantial prejudice; (3) whether grounds for default are clearly established; (4) whether default was caused by good faith mistake or excusable neglect; (5) the harshness of the default judgment; and (6) whether the court would feel obligated to set aside a default on the defendant’s motion. Lindsey v. Prive

Corp., 161 F.3d 886, 893 (5th Cir. 1998) (citing Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 2685 (2d ed. 1983)). III. Analysis A. Entry of Default

In deciding whether a default judgment is appropriate, the Court considers each of the six Lindsey factors described above. Here, there are no material issues of fact; rather, due to the default posture of this case, the Court takes Plaintiff’s allegations as against Defendant as true. See Nishimatsu Constr. Co. v. Hous. Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975); see also Joe Hand Promotions, Inc. v. 2 Tacos Bar & Grill,

LLC, No. 3:16-CV-1889-M, 2017 WL 373478, at *2 (N.D. Tex. Jan. 26, 2017) (Lynn, C.J.). There is no substantial prejudice against Defendant. Defendant was properly served (Doc. Nos. 6 & 9), the grounds for default against Defendant were clearly

established, and the Clerk properly entered default against Defendant. Entering default judgment against a defendant, who has taken no action to respond to a suit, is not “harsh.” See Joe Hand, 2017 WL 373478, at *2 (citing Lindsey, 161 F.3d at 893). Defendants had over eight months to respond to Plaintiff’s Complaint or otherwise appear in this case, which mitigates the harshness of a default judgment. See John Perez

Graphics & Design, LLC v. Green Tree Inv. Grp., Inc., No. 3:12-CV-4194-M, 2013 WL 1828671, at *3 (N.D. Tex. May 1, 2013) (Lynn, J.). Further, the Court is aware of no facts that would cause it to set aside the default judgment should Defendant challenge it. Accordingly, the Court finds that the procedural requirements for entering default

judgment are satisfied. B.

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