Never Too Hungover, LLC v. Drinkaid LLP

District Court, D. Nevada·Decided January 9, 2024·No. 2:23-cv-01347·Unknown

Opinion

NEVER TOO HUNGOVER, LLC, Case No.: 2:23-cv-01347-APG-EJY

Plaintiff Order Granting in part NTH’s Renewed Motion to Strike, Granting Defendant v. Ryan Foo’s Motion to Dismiss, and Denying NTH’s Motions for Injunctions DRINKAID LLP, et al., [ECF Nos. 4, 5, 14, 25] Defendants

Plaintiff Never Too Hungover, LLC (NTH) alleges that the defendants, a Singaporean individual (Ryan Foo) and two Singaporean companies (Drinkaid LLP and Drinkaid Wellness PTE. LTD.), are infringing on its DRINKADE trademark. The defendants are proprietors of a product sold under the trademark DRINKAID. They have filed documents in this case without counsel. NTH moves to strike the corporate defendants’ filings because they cannot appear without counsel. It also moves for injunctive relief against all defendants to restrain them from infringing on NTH’s DRINKADE mark in the United States. Foo moves to dismiss based on lack of personal jurisdiction. Because the corporate defendants may not appear before me without counsel, I grant in part NTH’s renewed motion to strike and do not consider the corporate defendants’ filings. I grant Foo’s motion to dismiss because NTH does not make a prima facie showing that Foo’s conduct satisfies the minimum contacts test for personal jurisdiction and because exercise of jurisdiction over him would be unreasonable. I also deny NTH’s motions for injunctive relief because NTH does not demonstrate that it is likely to establish personal jurisdiction over the corporate defendants. I. BACKGROUND1 NTH is a Nevada company based in Las Vegas that markets and sells a hangover remedy beverage under its registered DRINKADE trademark. ECF No. 4-1 at 3-4. The defendants market and sell a hangover remedy supplement in a capsule form under the DRINKAID trademark. Id. at 5; ECF No. 14 at 2-3. Drinkaid LLP and Drinkaid Wellness PTE. LTD. are

Singaporean companies and “operate primarily in Singapore.” ECF Nos. 14 at 2; 1 at 2. Ryan Foo is an owner of the DrinkAid companies and lives in Singapore. ECF Nos. 1 at 2, 3-4; 14 at 2. Foo applied for and was granted a trademark registration for the DRINKAID mark by the United States Patent and Trademark Office. ECF Nos. 26-2; 26-3; 26-4. The defendants operate a website (drinkaid.co) that markets and sells DrinkAid and is accessible in the United States. ECF No. 4-1 at 5-6. They have sold and shipped 323 orders to the United States since 2020, one of which was shipped to Nevada. ECF No. 14 at 2, 8-9. They conduct digital advertising, mostly targeted at Singapore, but not targeted at the United States or Nevada. Id. at 2, 6-7. NTH sued the defendants for federal and state trademark infringement, false designation

of origin, and unfair competition. ECF No. 1. NTH also moved for a temporary restraining order and a preliminary injunction on the same day. ECF Nos. 4; 5. Foo notes that there was “no prior communication” between the parties before the lawsuit. ECF No. 15 at 3. NTH admits that initiating the lawsuit was its “first measure.” ECF No. 20 at 8 (emphasis omitted). 1 Some of the background facts about the defendants’ business operations are taken from Foo’s motion to dismiss and opposition to the motions for injunctive relief. Foo did not provide these facts in the form of a sworn affidavit, but NTH does not object to them, contradict them, or provide any reason why I should not accept them as true. Moreover, Foo is proceeding pro se. Therefore, I will treat these facts as if Foo provided them in the form of an affidavit. See Perez- Portillo v. Garland, 56 F.4th 788, 795 (9th Cir. 2022) (not requiring statements made by a pro se party to be in the form of an affidavit). NTH previously moved to strike the corporate defendants’ answer because they could not appear without counsel. ECF No. 16. Magistrate Judge Youchah denied NTH’s first motion to strike and provided the defendants 10 days to retain counsel. ECF No. 17. The corporate defendants did not obtain counsel within the allotted time, so NTH renews its motion to strike

their filings. ECF No. 25. It has been over two months since Magistrate Judge Youchah’s order. The corporate defendants still have not retained counsel. Because “[c]orporations . . . must appear in court through an attorney,” I grant NTH’s renewed motion to strike. In re Am. W. Airlines, 40 F.3d 1058, 1059 (9th Cir. 1994); see also Rowland v. California Men’s Colony, Unit II Men’s Advisory Council, 506 U.S. 194, 202 (1993) (“[A] corporation may appear in the federal courts only through licensed counsel.”). I therefore will not consider ECF Nos. 14 and 15 as to the corporate entities, but because Foo may appear pro se, those filings remain valid as to Foo.

Foo moves to dismiss, arguing that I lack personal jurisdiction over him. Specifically, he notes that he and his companies are based in Singapore, have minimal commercial activities in the United States, have shipped only one order of DrinkAid to Nevada, and do not target advertising at Nevada or the United States. NTH responds that it has established a prima facie case of specific personal jurisdiction over Foo based on Nevada’s long-arm statute, and that Foo has not met his burden of showing that exercising jurisdiction over him is unreasonable.2 2 NTH argues that “[w]hen no federal statute governs personal jurisdiction,” I should apply Nevada’s long-arm statute. ECF No. 26 at 5. It does not contend that Federal Rule of Civil Procedure 4(k)(2) applies here, so I do not analyze personal jurisdiction under that rule. “Where a defendant moves to dismiss a complaint for lack of personal jurisdiction, the plaintiff bears the burden of demonstrating that jurisdiction is appropriate.” Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004). If, as here, the motion is based on written materials rather than an evidentiary hearing, “the plaintiff need only make a prima facie showing of jurisdictional facts.” Id. (quotation omitted). “Although the plaintiff cannot simply

rest on the bare allegations of its complaint, uncontroverted allegations in the complaint must be taken as true.” Id. (quotation and internal citation omitted). However, I do not have to credit an allegation that is “a conclusory legal statement unsupported by any factual assertion[s].” Williams v. Yamaha Motor Co., 851 F.3d 1015, 1025 n.5 (9th Cir. 2017) (citing Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). “Conflicts between parties over statements contained in affidavits must be resolved in the plaintiff’s favor.” Schwarzenegger, 374 F.3d at 800. Nevada’s long arm-statute permits me to exercise jurisdiction to “the limits of due process set by the United States Constitution.” Freestream Aircraft (Bermuda) Ltd. v. Aero L. Grp., 905 F.3d 597, 602 (9th Cir. 2018) (citing Nev. Rev. Stat. § 14.065). Constitutional due

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