Liberty Burger Property Company v. Liberty Rebellion Restaurant Group LLC

CourtDistrict Court, N.D. Texas
DecidedJanuary 20, 2023
Docket3:22-cv-00085
StatusUnknown

This text of Liberty Burger Property Company v. Liberty Rebellion Restaurant Group LLC (Liberty Burger Property Company v. Liberty Rebellion Restaurant Group LLC) 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
Liberty Burger Property Company v. Liberty Rebellion Restaurant Group LLC, (N.D. Tex. 2023).

Opinion

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

LIBERTY BURGER PROPERTY § COMPANY d/b/a LIBERTY BURGER, § § Plaintiff, § § Civil Action No. 3:22-CV-00085-E v. § § LIBERTY REBELLION RESTAURANT § GROUP, LLC, § § Defendant. §

MEMORANDUM OPINION AND ORDER Before the Court is Plaintiff’s Motion for Default Judgment filed March 2, 2022 (“Plaintiff’s Motion”) (Doc. 9), which seeks injunctive relief against Defendant. Having reviewed this motion and the applicable law, the Court finds that Plaintiff’s Motion for Default Judgment should be and is hereby GRANTED as follows. I. BACKGROUND On January 13, 2022, Plaintiff Liberty Burger Property Company initiated this action against Defendant Liberty Rebellion Restaurant Group LLC, alleging numerous claims under the Lanham Act and Texas common law involving trademark infringement and unfair competition. (See generally Doc. 1). Plaintiff’s complaint specifically alleged: The LIBERTY BURGER mark was first used in 2011 and is in continuous use to the present. The LIBERTY BURGER trademark was registered with the United States Patent and Trademark Office on December 6, 2011 under Registration No. 4068691 and is valid and in force. The mark is now incontestable. In addition to the word mark, Liberty Burger uses a distinctive logo in connection with its restaurant services which is also registered with the United States Patent and Trademark Office under Registration No. 6162413[]. . . . . In or around October of 2021, Liberty Burger was made aware of Defendant and its use of the infringing name Liberty Burger + Shake from a customer who contacted Liberty Burger believing that it had opened a new location in Ingram, Texas. Liberty Burger contacted Defendant regarding its infringing use and they refused to change their name. On November 23, 2021, counsel for Liberty Burger sent a letter to the owner of the Defendant restaurant regarding their infringing use for their restaurant name and domain name, .

(Doc. 1 at 3-4). Plaintiff’s complaint further included images of its trademarked logo in contrast with Defendant’s logo as used on the “libertyburgers.com” domain. (Doc. 1 at 3-4, 17). Plaintiff specifically pled for injunctive relief against Defendant. (Doc. 1 at 4-9). The Court issued a summons on January 13, 2022. (Doc. 4). Thereafter, Plaintiff filed proof of service, which shows Defendant was served with a copy of the summons and complaint on January 31, 2022. (Doc. 6). Defendant did not file an answer or other responsive pleading “within 21 days after being served with the summons and complaint.” Fed. R. Civ. P. 12(a)(1)(A)(i). Plaintiff moved for the Clerk’s entry of default on March 2, 2022. (Doc. 7), which the Clerk granted on the same date. (Doc. 8). Plaintiff’s Motion and corresponding proposed final judgment seek solely injunctive relief as pleaded in the complaint. (Docs. 9, 9-1). Defendant did not respond to Plaintiff’s Motion. The issue is now ripe for consideration. II. LEGAL STANDARD The Fifth Circuit favors resolving cases on their merits and generally disfavors default judgments. Rogers v. Hartford Life & Accident Ins. Co., 167 F.3d 933, 936 (5th Cir. 1999); see also Sun Bank of Ocala v. Pelican Homestead & Sav. Ass’n, 874 F.2d 274, 276 (5th Cir. 1989) (“Default judgments are a drastic remedy, not favored by the federal rules and resorted to by the courts only in extreme situations.”). This policy, however, is “counterbalanced by considerations of social goals, justice, and expediency, a weighing process [that] lies largely within the domain of the trial judge’s discretion.” Rogers, 167 F.3d at 936 (quoting Pelican Prod. Corp. v. Marino, 893 F.2d 1143, 1146 (10th Cir. 1990) (internal quotations omitted)); see also Merrill Lynch Mortg. Corp. v. Narayan, 908 F.2d 246, 253 (7th Cir. 1990) (noting that default judgments allow courts to manage their dockets “efficiently and effectively”). Thus, entry of a default judgment is within the Court’s discretion. Lindsey v. Prive Corp., 161 F.3d 886, 893 (5th Cir. 1998) (“[A] district court has the discretion to decline to enter a default

judgment.”). The Fifth Circuit looks to the following six factors when considering whether to enter a default judgment: (i) if the default was caused by a good faith mistake or excusable neglect; (ii) if there has been substantial prejudice; (iii) the harshness of a default judgment; (iv) if there are material issues of fact; (v) if grounds for a default judgment are clearly established; and (vi) if the court would think itself obligated to set aside the default on the defendant’s motion. Lindsey, 161 F.3d at 893 (holding that a district court did not abuse its discretion when denying a motion for default judgment when these factors weighed against granting the motion). The determination of whether to enter a no-answer default judgment involves a three-step analysis. New York Life Ins. Co. v. Brown, 84 F.3d 137, 141 (5th Cir. 1996). First, it must be found that—after service—a defendant failed to plead or otherwise respond to the complaint within the

time required by the Federal Rules of Civil Procedure. See Fed. R. Civ. P. 12(a)(1)(A)(i). Second, the Clerk must have entered a default—after default was established by affidavit or otherwise. Fed. R. Civ. P. 55(a). Third, a plaintiff must have applied to the Clerk or the Court for a default judgment and proven entitlement to same. Fed. R. Civ. P. 55(b)(2) (“the party must apply to the court for a default judgment.”). III. ANALYSIS A. Whether Defendant Failed to Timely Plead or Otherwise Respond to the Complaint

As a prerequisite for the defendant’s obligation to answer or respond to a suit, the Court must determine whether Plaintiff properly served Defendant. Fed. R. Civ. P. 4(c). Federal Rule of Civil Procedure 4(h) describes the process for serving a corporation, partnership, or association. Fed. R. Civ. P. 4(h). If the association is served within a judicial district of the United States, it may be served “in the manner prescribed by Rule 4(e)(1) for serving an individual.” Fed. R. Civ. P. 4(h)(1)(A-B). Federal Rule of Civil Procedure 4(e)(1) states:

(e) Serving an Individual Within a Judicial District of the United States. Unless federal law provides otherwise, an individual—other than a minor, an incompetent person, or a person whose waiver has been filed—may be served in a judicial district of the United States by: (1) following state law for serving a summons in an action brought in courts of general jurisdiction in the state where the district court is located or where service is made[.]

Fed. R.

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Liberty Burger Property Company v. Liberty Rebellion Restaurant Group LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liberty-burger-property-company-v-liberty-rebellion-restaurant-group-llc-txnd-2023.