Hinton v. Chretin's Family LLC

District Court, D. Arizona·Decided June 9, 2025·No. 2:24-cv-01817·Unknown

Opinion

WO

Jessica Hinton, et al., No. CV-24-01817-PHX-SMM

Plaintiffs, DEFAULT JUDGMENT

v.

Chretin's Family LLC,

Defendant. Pending before the Court is Plaintiffs’ Motion for Default Judgment Against Chretin’s Family, LLC. (Doc. 15). For the reasons stated below, the Court grants in part, and denies in part, the Motion. Nine plaintiffs bring claims against Defendant Chretin’s Family, LLC, for Defendant’s misappropriation of Plaintiffs’ images in their advertisements and social media posts. Plaintiffs bring nine claims: (1) false association in violation of § 43 of the Lanham Act, 15. U.S.C. § 1125 et seq., (2) a violation of the common law right of publicity, (3) unfair or deceptive trade practices under A.R.S. Title 44, Chapter 9, et seq., (4) common law unfair competition, (5) defamation, (6) negligence and respondeat superior, (7) conversion, and (8) unjust enrichment, and (9) quantum meruit. (See Doc. 1). Plaintiffs seek actual and punitive damages, costs and fees, attorney’s fees, and a permanent injunction against Defendant from using Plaintiffs’ images in any medium to promote Defendant or Defendant’s events. (Doc. 1 at 29). Defendant owns and operates The Kress Ultra Lounge, a nightclub based in Yuma, Arizona. Defendant posts advertisements for their nightclub and its upcoming events through their publicly available social media pages. The Complaint asserts that, on several occasions, Defendant misappropriated and intentionally altered photos from Plaintiffs’ social media pages in order to make it appear that Plaintiffs worked at, endorsed, or were otherwise associated or affiliated with Defendant’s nightclub in advertisements posted on Defendant’s social media pages. Further, the Complaint states that none of the Plaintiffs ever consented to Defendant’s use of the images, nor have any ever been employed by or affiliated with Defendant or its events. Plaintiffs filed this action on July 23, 2024, and obtained a summons for Defendant that same day. (Docs. 1; 2). Plaintiffs served Defendant on July 29, 2024, and filed proof of service on July 31, 2024. (Doc. 6). Defendants did not answer or otherwise respond to the Complaint. Plaintiffs moved for the entry of default against Defendant on August 29, 2024. (Doc. 9). The Clerk of the Court entered the default on August 30, 2024. (Doc. 11). Plaintiffs filed the instant Motion for Default Judgment on October 25, 2024. (Doc. 15). Rules 55(a) of the Federal Rules of Civil Procedure requires that “[w]hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.” Fed. R. Civ. P. 55(a). Once a party is found to be in default, on the plaintiff’s motion, the Court may enter a default judgment. Fed. R. Civ. P. 55(b). After an entry of default, the Court may grant a default judgment on the merits of the case. Twentieth Century Fox Film Corp. v. Streeter, 438 F.Supp.2d 1065, 1070 (D. Ariz. 2006). Rule 55 does not require the entry of judgment against a defaulting party, as “the decision whether to enter a default judgment is a discretionary one.” Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). In determining whether to grant a default judgment, “[t]he general rule of law [is] that upon default the factual allegations of the complaint, except those relating to the amount of damages, will be taken as true.” TeleVideo Sys. Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 2007); Aldabe, 616 F.2d at 1092 (9th Cir. 1980). When a defendant defaults, that default acts as an admission of the Complaint’s well-pleaded allegations of fact. DirecTV, Inc. v. Hoa Huynh, 503 F.3d 847, 851 (9th Cir. 2007); Cripps v. Life Ins. Co., 980 F.2d 1261, 1267 (9th Circ. 1992). However, a defendant’s default does not establish claims that are legally insufficient; a default still requires that the stated cause of action in the Complaint have the requisite facts to establish each element of each claim. DirecTV, Inc., 503 F.3d at 854. “Plaintiff is required to prove all damages sought in the complaint.” Philip Morris USA v. Castworld Prods, Inc., 219 F.R.D at 494, 498 (C.D. Cal. 2003). In its determination of damages, the Court may rely on the declarations submitted by the plaintiff or order a full evidentiary hearing. Fed. R. Civ. P. 55(b)(2). As the Defendant has not answered or otherwise appeared in this action, Plaintiffs request that the Court enter a default judgment against Defendants in the amount of $265,000 for the fair market value of Defendant’s commercial use of Plaintiffs’ images. (Doc. 15-1 at 4). Plaintiffs provided a declaration from Stephen Chamberlin, who detailed the analysis and factors that culminated in his determination of Plaintiffs’ damages. (Doc. 15-2, Exh. A). Mr. Chamberlin is a model and talent agent with ample experience in the industry of valuating image uses and model contracts. Id. Plaintiffs request, as supported by Mr. Chamberlin’s Declaration, that the total damages of $265,000 be divided among the Plaintiffs as follows: A. $60,000 to Plaintiff Hinton B. $40,000 to Plaintiff Guzman C. $40,000 to Plaintiff Sampedro D. $20,000 to Plaintiff Gray E. $10,000 to Plaintiff Milani F. $20,000 to Plaintiff Pepaj G. $25,000 to Plaintiff Acosta H. $30,000 to Plaintiff Crespo I. $20,000 to Plaintiff Terrell (Doc. 15-2, Exh. 2, at 20). The Court may consider the following factors in their discretion to the entry of a default judgment: (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). a. Jurisdiction and Service of Process The Court has an affirmative duty to investigate its jurisdiction over both the subject matter and the parties when an entry of judgment is sought against a party who has failed to plead or otherwise defend. In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999). Therefore, the Court will analyze the matters of subject matter jurisdiction and personal jurisdiction first. 1. Subject Matter Jurisdiction First, the court has subject matter jurisdiction over Plaintiffs’ claims because Plaintiffs bring a claim under the Lanham Act. The Lanham Act broadly grants federal subject-matter jurisdiction over “all actions arising under this chapter, without regard to the amount in controversy or to diversity or lack of diversity of the citizenship of the parties.” La Quinta Worldwide LLC v. Q.R.T.M., S.A de C.V., 762 F.3d 867, 873 (9th Cir. 2014)

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