Luxottica Group, S.p.A. v. Eye Story, Inc.

CourtDistrict Court, C.D. California
DecidedMay 11, 2020
Docket2:18-cv-03374
StatusUnknown

This text of Luxottica Group, S.p.A. v. Eye Story, Inc. (Luxottica Group, S.p.A. v. Eye Story, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Luxottica Group, S.p.A. v. Eye Story, Inc., (C.D. Cal. 2020).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES — GENERAL ‘oO’ JS-6 Case No. 2:18-cv-3374-CAS-GJS Date May 11, 2020 Title LUXOTTICA GROUP, S.P.A. v. EYE STORY, INC., ET AL

Present: The Honorable CHRISTINAA.SNYDER Catherine Jeang Laura Elias N/A Deputy Clerk Court Reporter / Recorder Tape No.

Attorneys Present for Plaintiffs: Attorneys Present for Defendants: Brent Blakely Not Present

Proceedings: TELEPHONE HEARING ON PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT (ECF No. 35, filed February 20, 2020) 1. INTRODUCTION AND BACKGROUND On April 23, 2018, Plaintiff Luxottica Group, S.p.A. (“Luxottica”) brought this action against defendants Eye Story, Inc. (“Eye Story”), a California corporation, Eunji Ko (“Ko”), an alleged owner, officer, director, and/or managing agent of Eye Story, and DOES 1-10. ECF No. 1 (“Compl.”). Plaintiff is an Italian corporation engaged in the business of producing, manufacturing and distributing premium and luxury eyewear products throughout the world, including the Ray-Ban family of trademarks (collectively, the “Ray- Ban Marks”). Id. at 2. The gravamen of Luxottica’s complaint is that Eye Story has been displaying, offering for sale, and/or selling eyewear bearing counterfeit reproductions of the Ray-Ban Marks (“Counterfeit Products”) without Luxottica’s consent. Id. at 6. Defendants filed an answer to plaintiff's complaint on May 18, 2018 (“the Answer’). ECF No. 11. The Court held a scheduling conference on July 16, 2018, at which the plaintiff failed to appear. ECF No. 19. The Court’s ordered plaintiff to show cause why the action should not be dismissed for failure to appear at a Court-ordered hearing, see ECF No. 19, to which plaintiff replied on July 26, 2018. See ECF No. 21. Ko filed a Chapter 7 Bankruptcy Petition on or about January 23, 2019, and the Court entered a stay as to Ko on January 30, 2019. See ECF No. 26. Ko was later dismissed as a defendant on February 25, 2020. ECF No. 38. On April 22, 2019, the Court held a pretrial conference, at which defendant Eye Story failed to appear. After failing to show cause for its failure to appear, Eye Story’s Answer was stricken on May 8, 2020. See ECF No. 29. On May 21, 2019, the Clerk of

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘Oo’ JS-6 Case No. 2:18-cv-3374-CAS-GJS Date May 11, 2020 Title LUXOTTICA GROUP, S.P.A. v. EYE STORY, INC., ET AL

the Court entered default against Eye Story. See ECF No. 31. On February 20, 2020, plaintiff filed a motion for default judgment, ECF No. 35 (“Mot.”), for the following claims: (1) federal trademark counterfeiting, trademark infringement, and unfair competition: (2) false designation of origin and false description; and (3) trademark dilution.’ See Mot. at 6-8. Plaintiff also filed a supporting declaration, ECF No. 35-1 (“Blakely Decl.”), and an exhibit, ECF No. 35-2. The Court held a telephonic hearing on May 11, 2020, at which defendants failed to appear. Having carefully considered the complaint, the motion, and plaintiffs supporting declaration and exhibit, the Court finds and concludes as follows. LEGAL STANDARD Pursuant to Federal Rule of Civil Procedure 55, when a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and the plaintiff does not seek a sum certain, the plaintiff may apply to the court for a default judgment. Fed. R. Civ. P. 55. Granting or denying a motion for default judgment is a matter within the court’s discretion. Elektra Entm’t Grp. Inc. v. Crawford, 226 F.R.D. 388, 392 (C.D. Cal. 2005). The Ninth Circuit has directed that courts consider the following factors in deciding whether to enter default judgment: (1) the possibility of prejudice to plaintiff; (2) the merits of plaintiff's substantive claims; (3) the sufficiency of the complaint; (4) the sum of money at stake in the action; (5) the possibility of a dispute concerning the material facts; (6) whether defendant’s default was the product of excusable neglect; and (7) the strong policy favoring decisions on the merits. See Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986): see also Elektra, 226 F.R.D. at 392. “Before a court can enter a default judgment against a defendant, the plaintiff must satisfy the procedural requirements set forth in Federal Rules of Civil Procedure 54(c) and 55, as well as Local Rule 55—1 and 55-2.” Harman Int’] Indus., Inc. v. Pro Sound Gear, Inc., No. 2:17-cv-06650-ODW-FFM, 2018 WL 1989518, at *1 (C.D. Cal. Apr. 24, 2018). Accordingly, when an applicant seeks a default judgment from the Court, the movant must

' In addition to these claims, plaintiff's complaint also includes claims for common law trademark infringement, common law unfair competition, and violation of Cal. Bus. & Prof. Code § 17200 et seq. See Compl. at 10-12. These claims are not specifically addressed in the motion for default judgment and will therefore not be addressed in this order.

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘Oo’ JS-6 Case No. 2:18-cv-3374-CAS-GJS Date May 11, 2020 Title LUXOTTICA GROUP, S.P.A. v. EYE STORY, INC., ET AL

submit a declaration specifying: “(a) When and against what party the default was entered; (b) The identification of the pleading to which default was entered; (c) Whether the defaulting party is an infant or incompetent person, and if so, whether that person is represented by a general guardian, committee, conservator or other representative: (d) That the Servicemembers Civil Relief Act (50 U.S.C. App. § 521) does not apply; and (e) That notice has been served on the defaulting party, if required by [Federal Rule of Civil Procedure] 55(b)(2).”. See C.D. Cal. L.R. 55-1. Under Local Rule 55—2, “where an application for default judgment seeks unliquidated damages, the party seeking entry of the default judgment is obligated to serve notice of the application on the defaulting party regardless of whether the latter has appeared in the action.” Halicki v. Monfort, No. 2:08- cv-00351-PSG-JTL, 2009 WL 10672966, at *2 (C.D. Cal. Nov. 19, 2009) (citing C.D. Cal. L.R. 55-2). DISCUSSION A. Procedural Requirements In connection with its motion for default judgment against Eye Story, plaintiff submits a declaration attesting that: (a) on May 21, 2019, the Clerk entered default against Eye Story following its failure to file any pleadings or otherwise defend this action after its answer was stricken; (b) that Eye Story is not an infant or incompetent person; (c) that Eye Story is not “in military service or otherwise exempt under the Soldiers’ and Sailors’ Civil Relief Act of 194°": and (d) that notice of this motion was serviced on Eye Story on February 20, 2020. Blakely Decl. §§ 10-13. The Court concludes that Luxottica has satisfied the requirements for entry of default judgment and proceeds to the merits of Luxottica’s motion.

* The Soldiers’ and Sailor’s Civil Relief Act is the “precursor” to the current Servicemembers Civil Relief Act. See Trujillo v. Tally, No. 03-cv-533-S-MHW, 2006 WL 8426821, at *2 (D. Idaho June 2, 2006). That Rosen’s declaration refers to the Soldiers’ and Sailor’s Civil Relief Act, rather than the Servicemembers Civil Relief Act, does not preclude the entry of default judgment. See.

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