North Atlantic Operating Co. v. JingJing Huang

194 F. Supp. 3d 634, 2016 WL 3661753, 2016 U.S. Dist. LEXIS 88416
CourtDistrict Court, E.D. Michigan
DecidedJuly 8, 2016
DocketCase No. 15-14013
StatusPublished
Cited by8 cases

This text of 194 F. Supp. 3d 634 (North Atlantic Operating Co. v. JingJing Huang) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Atlantic Operating Co. v. JingJing Huang, 194 F. Supp. 3d 634, 2016 WL 3661753, 2016 U.S. Dist. LEXIS 88416 (E.D. Mich. 2016).

Opinion

ORDER GRANTING PLAINTIFFS’ MOTION FOR A PRELIMINARY INJUNCTION AND OTHER RELIEF (DKT. 189)

TERRENCE G. BERG, UNITED STATES DISTRICT JUDGE

Plaintiffs have filed this action pursuant to the Lanham and Copyright Acts as well as Michigan state law alleging that Defendants manufacture, distribute, or sell counterfeit versions of ZIG-ZAG® brand cigarette paper products.2 (See dkt. 188.) On May 6, 2016, the Court granted Plaintiffs leave to file their First Amended Complaint to remove those Defendants that had been dismissed from this case and to add four new Defendants (the “DHGate. com Defendants”)3 identified by Plaintiffs through discovery obtained from existing Defendants. (Dkt. 186.) The Court also issued an order permitting service of pro[636]*636cess on the newly-named DHGate.com Defendants by alternative means. (Id.)

On May 13, 2016, Plaintiffs filed their Amended Complaint and exhibits (Dkt. 188), requested summons for the DHGate. com Defendants, and filed a motion for a preliminary injunction and other relief with respect to the DHGate.com Defendants. (Dkt. 189.) In support of their motion, Plaintiffs filed a declaration by John Hood, an investigator for a private security firm, and documentation of many transactions between the original Defendants and the DHGate.com Defendants involving the sale of allegedly counterfeit ZIGZAG® brand products. (See dkt. 191.)

On May 19, 2016, Plaintiffs served the DHGate.com Defendants with the Amended Complaint, the motion for injunctive relief, “and all related documents filed in the matter via email, DHGate messenger, and courier.” (See dkts. 193-196.) In their motion, Plaintiffs seek: (1) a preliminary injunction against the DHGate.com Defendants pursuant to Federal Rule of Civil Procedure 65 that enjoins further trade in counterfeit products and freezes the DHGate.com Defendants’ access to their online accounts and any assets in those accounts; and (2) permission to serve limited, expedited discovery upon certain third parties to ascertain with greater certainty the identities and addresses of the DHGate.com Defendants and the location of their operations.4 (Dkt. 189, pp. 5, 14.)

On May 27, 2016, a hearing on Plaintiffs’ motion was scheduled for June 15, 2016 and Plaintiffs were ordered to serve the notice of hearing on the DHGate.com Defendants “by email or other electronic means, and by overnight courier, when practicable, to the degree necessary to ensure and effectuate service.” (Dkt. 199, p. 3.) On June 1, 2016, the hearing was rescheduled for June 29, 2016 (Dkt. 200) and Plaintiffs served the DHGate.com Defendants with this updated notice on June 9, 2016 (Dkt. 201).

The hearing on Plaintiffs’ motion for injunctive relief was held as scheduled on June 29, 2016 in Detroit, Michigan. None of the DHGate.com Defendants or their representatives appeared or otherwise responded to Plaintiffs’ motion or to the amended complaint. The Court considers Plaintiffs’ motion to be unopposed.

At the hearing, Plaintiffs’ Counsel summarized the efforts made to serve each of the DHGate.com Defendants and to verify that the methods of service used were viable. The Court heard testimony from John Hood regarding his communications with the DHGate.com Defendants via email, DHGate messaging, and other electronic means. Plaintiffs Counsel also represented to the Court that the DHGate. com Defendants had been served at their physical addresses via FedEx. The Court is satisfied that Plaintiffs’ Counsel has made good faith efforts to serve and to communicate with each of the DHGate.com Defendants, and that Plaintiffs’ Counsel is pursuing a process which adequately respects the due process rights of the DHGate.com Defendants.

The Court also conducted a detailed review on the record of the evidence in support of the motion, questioning Plaintiffs’ Counsel as to the circumstances pertaining to each newly-named Defendant. At the hearing, Plaintiffs’ Counsel explained that the DHGate.com Defendants had been identified by many of the original seller [637]*637Defendants as the suppliers who provided counterfeit products to the original seller Defendants for resale. The Court then received and reviewed summary exhibits of the evidence of the DHGate.com Defendants’ commercial transactions with the original seller Defendants as well as with John Hood. (Dkts. 207,208.) Finally, Plaintiffs’ Counsel presented evidence in support of each of the factors to be considered before injunctive relief can be granted: irreparable and imminent injury, likelihood of success on the merits, harm to the non-moving parties, and impact on the public interest. See 4 C. Wright & A. Miller, Federal Practice and Procedure § 2951 at 507-08; see also McPherson v. Michigan High Sch. Athletic Ass’n, 119 F.3d 453, 459 (6th Cir.1997) (en banc). This evidence has not been controverted, though the DHGate.com Defendants were invited to do so.

Pursuant to Federal Rule of Civil Procedure 65(a), the Court will therefore grant Plaintiffs a preliminary injunction and other requested relief as specified below for the reasons stated on the record. Although injunctive relief is an extraordinary remedy, there is a sufficient basis for granting it against the DHGate.com Defendants, who offer no evidence, or response of any kind, that would suggest otherwise.

Plaintiffs’ request for other relief will also be granted. In addition to preliminary injunction, Plaintiffs also request an expedited discovery order. Plaintiffs request to serve limited, expedited discovery upon necessary third parties in order to establish with greater certainty the DHGate.com Defendants’ identities and addresses as well as the locations of their counterfeiting operations. (Dkt. 189, pp. 26-29.) Pursuant to Federal Rule of Civil Procedure 26(d)(1), parties can begin discovery before their Rule 26(f) conference if a district court authorizes them to do so upon a showing of good cause. Fed. R. Civ. P. 26(d)(1). Within this Circuit, district courts have found good cause for granting expedited discovery when the true identities of the defendants are unknown, when the moving party alleges infringement, when the scope of the discovery sought is narrow, and when expedited discovery would substantially contribute to moving the case forward. See, e.g., Arista Records, LLC v. Does 1-4, 2007 WL 4178641, *1 (W-D.Mich. Nov. 20, 2007).

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Bluebook (online)
194 F. Supp. 3d 634, 2016 WL 3661753, 2016 U.S. Dist. LEXIS 88416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-atlantic-operating-co-v-jingjing-huang-mied-2016.