Hinton v. Completely Innocent LLC

District Court, D. Arizona·Decided January 7, 2022·No. 2:21-cv-01019·Unknown

Opinion

WO

Jessica Hinton, et al., ) No. CV-21-01019-PHX-SPL ) ) Plaintiffs, ) ORDER vs. ) ) ) Completely Innocent LLC, ) ) Defendant. ) ) ) Before the Court is Plaintiffs Jessica Hinton, Cielo Jean Gibson, Katarina Van Derham, and Claudia Sampedro’s (collectively, “Plaintiffs”) Motion for Default Judgment Against Defendant Completely Innocent LLC. (Doc. 18). No response to the Motion has been filed. Having reviewed Plaintiffs’ Motion, the exhibits attached thereto, and the record in this matter, the Court will grant the Motion. On June 11, 2021, Plaintiffs filed a Complaint against Defendant Completely Innocent LLC, doing business as Club Luxx (“Defendant” or “Club Luxx”). (Doc. 1). The Complaint seeks damages and injunctive relief for Defendant’s alleged misappropriation and unauthorized publication of images of Plaintiffs to promote its nightclub. (Id. at 2). The Complaint has seven counts: (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) unfair competition; (5) negligence and respondeat superior; (6) conversion; and (7) unjust enrichment. (Id. at 12–19). However, Plaintiffs have withdrawn the third through seventh causes of action, leaving only the Lanham Act claim and the right of publicity claim at issue with this Motion. (Doc. 19 at 5 n.1). The Court will therefore not consider an entry of default judgment against Defendant as to Plaintiffs’ other five claims (unfair or deceptive trade practices, unfair competition, negligence and respondeat superior, conversion, and unjust enrichment) and will instead dismiss those Counts in their entirety. Defendant was served on July 12, 2021 and its deadline to answer or otherwise move against the Complaint was August 3, 2021. (Doc. 8). Defendant has failed to answer or respond to the Complaint or otherwise appear in this action. On August 31, 2021, Plaintiffs filed an Application for Entry of Default against Defendant pursuant to Federal Rule of Civil Procedure (“FRCP”) 55(a). (Doc. 10). On September 2, 2021, the Clerk of Court entered default as to Defendant. (Doc. 11). On October 18, 2021, this Court ordered Plaintiffs to show cause by October 22, 2021 why the action should not be dismissed for failure to prosecute. (Doc. 14). On October 22, 2021, Plaintiffs filed a Motion for Default Judgment pursuant to FRCP 55(b)(2) requesting an entry of default judgment and relief. (Doc. 15). This Court denied Plaintiffs’ Motion without prejudice and gave Plaintiffs an opportunity to refile the Motion in accordance with the Court’s Order. (Doc. 17). On December 16, 2021, Plaintiffs filed a second Motion for Default Judgment—the Motion presently before this Court. (Doc. 18). Plaintiffs seek $85,000 in actual damages, an order permanently enjoining Defendant from using Plaintiffs’ images, and an award to Plaintiffs of all costs and fees incurred in prosecuting this action. (Doc. 19 at 13). To the extent this Court concludes that Plaintiffs’ evidence does not sufficiently establish the fair market value of Defendant’s use of Plaintiffs’ images for commercial purposes, Plaintiffs request the Court conduct an inquest into the issue of damages pursuant to FRCP 55(b)(2). (Id.). Defendant has not responded to Plaintiffs’ Motion. /// /// A. Subject Matter Jurisdiction, Personal Jurisdiction, and Service of Process When default judgment is sought against a non-appearing party, a court has “an affirmative duty to look into its jurisdiction over both the subject matter and the parties.” In re Tuli, 172 F.3d 707, 712 (9th Cir. 1999) (“To avoid entering a default judgment that can later be successfully attacked as void, a court should determine whether it has the power, i.e., the jurisdiction, to enter judgment in the first place.”). A court has a similar duty with respect to service of process. See Fishman v. AIG Ins. Co., No. CV 07-0589- PHX-RCB, 2007 WL 4248867, at *3 (D. Ariz. Nov. 30, 2007) (“Because defendant has not been properly served, the court lacks jurisdiction to consider plaintiff’s motions for default judgment.”). These considerations are “critical because ‘[w]ithout a proper basis for jurisdiction, or in the absence of proper service of process, the district court has no power to render any judgment against the defendant’s person or property unless the defendant has consented to jurisdiction or waived the lack of process.’” Id. (citing S.E.C. v. Ross, 504 F.3d 1130, 1138–39 (9th Cir. 2007)). First, as to subject-matter jurisdiction, the Court may exercise subject-matter jurisdiction because Plaintiffs have stated a claim under the Lanham Act, “which ‘confers broad jurisdictional powers upon the courts of the United States’ in conjunction with 28 U.S.C. § 1331.” La Quinta Worldwide LLC v. Q.R.T.M., S.A. de C.V., 762 F.3d 867, 872– 73 (9th Cir. 2014). “The Lanham Act 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.” Id. (citing 15 U.S.C. § 1121(a)). As to Plaintiffs’ only remaining state-law claim—violation of the common-law right of publicity—this Court exercises its supplemental jurisdiction because the claim arises out of the same case or controversy, i.e., Defendant’s unlawful use of Plaintiffs’ images. 28 U.S.C. § 1367(a) (“[T]he district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy under Article III. . . .”); see also Kuba v. 1–A Agric. Ass’n, 387 F.3d 850, 855–56 (9th Cir. 2004) (“Nonfederal claims are part of the same ‘case’ as federal claims when they derive from a common nucleus of operative fact and are such that a plaintiff would ordinarily be expected to try them in one judicial proceeding.”). Next, as to personal jurisdiction, the Court has personal jurisdiction over Defendant because Defendant is a citizen of Arizona and because Defendant was properly served. See Pennoyer v. Neff, 95 U.S. 714 (1877) (noting that “every State possesses exclusive jurisdiction and sovereignty over persons and property within its territory.”); Benny v. Pipes, 799 F.2d 489, 492 (9th Cir. 1986) (noting that a federal court lacks personal jurisdiction over defendant unless defendant properly served). According to the Complaint, Defendant “is a limited liability company organized and existing pursuant to the laws of the State of Arizona doing business as a night club under t

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Hinton v. Completely Innocent LLC, (D. Ariz. 2022).

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