Peter Kiewit Sons', Inc. v. Wall Street Equity Group, Inc.

809 F.3d 1018, 2016 U.S. App. LEXIS 52, 2016 WL 66955
CourtCourt of Appeals for the Eighth Circuit
DecidedJanuary 6, 2016
Docket14-3461
StatusPublished
Cited by13 cases

This text of 809 F.3d 1018 (Peter Kiewit Sons', Inc. v. Wall Street Equity Group, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peter Kiewit Sons', Inc. v. Wall Street Equity Group, Inc., 809 F.3d 1018, 2016 U.S. App. LEXIS 52, 2016 WL 66955 (8th Cir. 2016).

Opinion

KELLY, Circuit Judge.

This appeal arises out of a trademark infringement suit filed by Peter Kiewit Sons’, Inc., in which the district court 1 first entered a default against the defendants as a sanction for discovery abuses, and then proceeded to enter default judgment against defendant Steven West in the amount of $913,099.46. On appeal, West argues that the district court abused its discretion in denying West’s multiple motions to postpone the hearing on damages, and that it erred in calculating the damages award. We have jurisdiction under 28 U.S.C. § 1291 and, finding no error in the district court’s rulings, we affirm.

I. Background

West is a Florida businessman who, along with his business associate, Shepherd Friedman, owned Wall Street Equity Group, Inc., and Wall Street Group of Companies, Inc. All four were sued in September 2010 for trademark infringement by Kiewit, a large construction and mining company based in Omaha, Nebraska.

Kiewit sued because it had learned that the defendants had been contacting businesses and telling them Kiewit was interested in acquiring them, as long as they submitted to a valuation by West. In reality, Kiewit had no connection with the defendants. Their paths had crossed only once, in 2008, when Kiewit was in the process of acquiring a company called Jett Industries. After Jett’s owner responded to an advertisement by one of West’s companies, the company sent out a mass mail with information about Jett to a number of companies, including Kiewit. Kiewit expressed interest in buying Jett, but quickly realized that West’s company had no expertise on acquisitions. As a result, Kiew-it proceeded to work directly with Jett’s owner over the next two to three months to complete the acquisition; West and his company played no further role, apart from West’s showing up to collect his fee at the closing of the deal.

A number of the solicitations sent out by the defendants offering to valúate companies mentioned Kiewit by name. This formed the basis for Kiewit’s trademark infringement suit under the Lanham Act and Nebraska state law, for “Kiewit” is a *1020 service mark owned by Peter Kiewit Sons’, Inc. In response, the defendants claimed that they had only used the “Kiewit” mark in solicitations on two occasions, and that they had no additional documents that used the word “Kiewit.”

These statements turned out to be false, and in the judgment of the district court knowingly so. The defendants in fact possessed thousands of files containing the term “Kiewit,” including letters to third parties very similar in content to the two solicitations the defendants had previously acknowledged. The defendants did not turn these files over in discovery. Instead, they engaged in a protracted campaign of obstruction and spoliation — with West going so far as to throw one of his file servers in a dumpster, claiming that its motherboard was “fried.” In response to these discovery abuses, the magistrate judge in charge of discovery found that West “was not a believable witness” and had exhibited a “pattern of dishonesty under oath,” and that the defendants had “intentionally submitted false evidence and testimony in bad faith, committed fraud on this court, and intentionally destroyed evidence with a desire to suppress the truth in this case.” On her recommendation, the district court entered a default against each of the defendants as a sanction. None of the foregoing actions by the district court is contested on appeal.

The district court then scheduled a hearing for October 11, 2013, to further develop the factual record and determine the amount of damages. In the weeks leading up to this date, West, who by this time was no longer represented by counsel, filed several motions to postpone the hearing.

On September 5, 2013, West filed a motion asking to move the hearing to “any Friday in November starting with the second Friday” (in other words, to delay the hearing by at least four weeks) to accommodate a man named Frank Owen, whom West referred to as his attorney. According to West, Owen would be unable to attend a hearing on October 11 due to multiple medical operations, but he would be able to “participate in a one day video conference trial” by November. West noted that his own health as of October 11 would be uncertain due to unspecified medical ailments, but emphasized that Owen would clearly not be able to participate. The following day, the magistrate judge ordered Owen to make a formal appearance by September 13. Then, on September 11, West filed a pro se “Motion to Clarify the Previous Filing,” explaining that he planned to represent himself because Owen was not “in a position to commit himself to a continuing relationship in this matter based on the economic challenges” West faced. He stated that Owen’s role would be limited to “providing] [him] with procedural advice and direction.”

In response, the magistrate judge issued an order denying the motion to move the hearing. The order stated that if Owen’s role in providing legal advice was to be significant enough to require rescheduling the hearing, he would need to enter an appearance for West; otherwise, the hearing would proceed without regard to Owen’s availability. The order also clarified that the hearing would not be a “one day video trial,” but.would require the parties to be present in the courtroom. Finally, the order permitted West to re-file his motion if he could provide evidentiary support from a licensed medical provider indicating that West would be unable to attend the hearing in Omaha on October 11.

On September 24, West filed a second motion seeking to postpone the hearing to an unspecified date. Attached to the motion were three letters: one from I. Jay *1021 Asher, a psychotherapist, who opined that West had been “running in emergency mode for eleven years” and that “[a] stressful one-day trial could be life-threatening” to West; one from Dr. William A. Abelove, who stated that he had been treating West for essential hypertension for over a decade and that “[participation in a high , pressure court proceeding could place him at increased risk for a major cardiovascular event”; and one from a psychiatrist named Dr. Richard W. Levin, who stated that West was suffering from severe depression, that despite treatment his progress in the past two weeks had been minimal, and that a court appearance “would be very deleterious to him and' his mental status.”

The next day, the magistrate judge denied his second motion, noting that each of the medical issues identified in the letters was long standing, and that there was little point in postponing the hearing when there was no indication that the conditions would improve in the future. She also pointed out that apart from the hypertension noted by Dr. Abelove, the medical opinions expressed in the letters were largely based on self-reporting by West, and that his credibility was suspect. West moved for reconsideration of the order a few days later, which was also denied.

On October 8, West moved for the magistrate judge to recuse herself, claiming that she was biased against him based on her rulings against him.

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Cite This Page — Counsel Stack

Bluebook (online)
809 F.3d 1018, 2016 U.S. App. LEXIS 52, 2016 WL 66955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peter-kiewit-sons-inc-v-wall-street-equity-group-inc-ca8-2016.