Indian Motorcycle International, LLC v. Arturo Eguia and Indian Bike Week LLC

CourtDistrict Court, D. Minnesota
DecidedMarch 18, 2026
Docket0:24-cv-01958
StatusUnknown

This text of Indian Motorcycle International, LLC v. Arturo Eguia and Indian Bike Week LLC (Indian Motorcycle International, LLC v. Arturo Eguia and Indian Bike Week LLC) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indian Motorcycle International, LLC v. Arturo Eguia and Indian Bike Week LLC, (mnd 2026).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

INDIAN MOTORCYCLE Case No. 24-cv-1958 (LMP/SGE) INTERNATIONAL, LLC,

Plaintiff, ORDER DENYING DEFENDANTS’ v. MOTION TO VACATE DEFAULT JUDGMENT ARTURO EGUIA and INDIAN BIKE WEEK LLC,

Defendants.

Paige S. Stradley and Michael A. Erbele, Merchant & Gould P.C., Minneapolis, MN; and Alana LeFebvre, Merchant & Gould P.C., Denver, CO, for Plaintiff. Terrance C. Newby and Dany Berbari, Maslon LLP, Minneapolis, MN, for Defendants. Plaintiff Indian Motorcycle International, LLC (“IMI”) brought this action against Defendants Arturo Eguia and Indian Bike Week, LLC (“IBW”), asserting claims of breach of contract; trademark infringement and unfair competition under the Lanham Act; and deceptive trade practices and unfair competition under Minnesota state law. ECF No. 1 ¶¶ 67–106. Defendants actively participated in the litigation initially, but after their counsel withdrew, they did not secure replacement counsel and ceased meaningfully participating and appropriately defending themselves in this case. ECF No. 101 at 11–14. With the Court’s leave, IMI filed an amended complaint, ECF No. 69, but Defendants did not file an answer, ECF No. 101 at 12–13. IMI then moved for entry of default judgment, ECF No. 78, but Defendants failed to substantively respond to IMI’s motion despite being afforded multiple opportunities to do so, ECF No. 101 at 13–14. The Court took IMI’s motion for default judgment under advisement and, on September 5, 2025, granted the

motion and directed that judgment be entered against Defendants on all of IMI’s claims. Id. at 19–39. Notably, the Court granted IMI’s request for a permanent injunction and ordered Defendants to file an affidavit certifying their compliance with the injunction by October 20, 2025. Id. at 36–39. On October 17, 2025, new counsel appeared on Defendants’ behalf. ECF No. 105. On October 20, 2025, Defendants filed a declaration certifying their partial compliance

with the permanent injunction, ECF No. 111, and a motion to vacate the default judgment under Federal Rule of Civil Procedure 60(b)(1), ECF No. 106. Upon consideration of all the relevant circumstances, the Court declines to set aside the default judgment. ANALYSIS1 Relief from a final judgment under Rule 60(b) is an extraordinary remedy “which

may be granted only upon an adequate showing of exceptional circumstances.” Williams v. York, 891 F.3d 701, 706 (8th Cir. 2018) (citation omitted). Relevant here, a district court may grant relief from a default judgment under Rule 60(b) because of a party’s “excusable neglect.” Fed. R. Civ. P. 60(b)(1). “The determination of excusable neglect ‘is at bottom an equitable one, taking account of all relevant circumstances surrounding the party’s

1 The Court incorporates the factual background set forth in the order granting IMI’s motion for default judgment. See ECF No. 101 at 2–11. The Court need not traverse those facts for purposes of resolving Defendants’ motion to set aside the default judgment. omission.’” Feeney v. AT & E, Inc., 472 F.3d 560, 562–63 (8th Cir. 2006) (quoting Pioneer Inv. Servs. Co. v. Brunswick Assoc. Ltd. P’ship, 507 U.S. 380, 395 (1993)).

Defendants contend that their failure to actively or meaningfully participate and appropriately defend themselves in this case was due to excusable neglect, which warrants vacating the default judgment and reopening this matter. See ECF No. 107 at 9–21. For the reasons discussed below, the Court disagrees. I. Excusable Neglect Securing a default judgment is a two-step process. First, the party seeking default

judgment must apply for entry of default from the Clerk of Court. See Fed. R. Civ. P. 55(a). Second, “[o]nly after an application is made, and granted under Rule 55(a), can a plaintiff seek a Default Judgment” under Rule 55(b). Armstrong v. Astrue, 569 F. Supp. 2d 888, 895 n.6 (D. Minn. 2008). Notably, Rule 55(c) provides that a district court may set aside the initial entry of

default “for good cause,” but may only “set aside a final default judgment under Rule 60(b).” Fed. R. Civ. P. 55(c). And while “the same factors are typically relevant” in deciding whether to set aside an entry of default under Rule 55(c) and a default judgment under Rule 60(b), “relief from a default judgment requires a stronger showing of excuse than relief from a mere default order.” Johnson v. Dayton Elec. Mfg. Co., 140 F.3d 781,

783 (8th Cir. 1998) (citation modified). This is because “it is likely that a party who promptly attacks an entry of default, rather than waiting for grant of a default judgment, was guilty of an oversight and wishes to defend the case on the merits.” Id. Here, Defendants waited until after default judgment was entered to seek any relief from the Court, so Defendants must make “a stronger showing of excuse” to justify setting aside the default judgment. Id. (citation omitted).

Courts consider several factors when determining whether a defaulting party’s neglect is sufficiently excusable to set aside a default judgment, including: (1) the danger of prejudice to the non-moving party; (2) the length of the delay and its potential impact on judicial proceedings; (3) whether the moving party acted in good faith; and (4) the reason for the delay, including whether it was within the reasonable control of the moving party. In re Guidant Corp. Implantable Defibrillators Prods. Liab. Litig., 496 F.3d 863,

866 (8th Cir. 2007) (citing Pioneer Inv. Servs., 507 U.S. at 395). These factors “do not carry equal weight; the reason for delay is a key factor in the analysis.” U.S. Commodity Futures Trading Comm’n v. Kratville, 796 F.3d 873, 896 (8th Cir. 2015) (citation omitted). In addition, “the existence of a meritorious defense” is a relevant factor. Giles v. Saint Luke’s Northland-Smithville, 908 F.3d 365, 368 (8th Cir. 2018) (citation omitted).

A. Danger of Prejudice to IMI Prejudice generally “may not be found from delay alone or from the fact that the defaulting party will be permitted to defend on the merits.” Johnson, 140 F.3d at 785. Rather, the nonmoving party must be prejudiced “in a more concrete way, such as loss of evidence, increased difficulties in discovery, or greater opportunities for fraud and

collusion.” Id. (internal quotation marks omitted) (citation omitted). Strictly as it relates to issues in discovery, the Court believes there is little danger of prejudice to IMI. IMI is understandably exasperated by Defendants’ conduct during discovery in this case, see ECF No. 112 at 9–10, but the Court does not discern any substantial risk that evidence has been or would be lost. Further, Defendants, “now represented by counsel,” represent that they “fully plan” to correct their prior discovery

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Indian Motorcycle International, LLC v. Arturo Eguia and Indian Bike Week LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indian-motorcycle-international-llc-v-arturo-eguia-and-indian-bike-week-mnd-2026.