Pizza Inn Inc v. Allens Dynamic Food Inc

CourtDistrict Court, W.D. Oklahoma
DecidedJune 28, 2024
Docket5:23-cv-00164
StatusUnknown

This text of Pizza Inn Inc v. Allens Dynamic Food Inc (Pizza Inn Inc v. Allens Dynamic Food Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pizza Inn Inc v. Allens Dynamic Food Inc, (W.D. Okla. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA

PIZZA INN, INC., ) ) Plaintiff, ) ) v. ) Case No. CIV-23-00164-PRW ) ALLEN’S DYNAMIC FOOD, INC., ) et al., ) ) Defendants. )

ORDER Before the Court are Plaintiff Pizza Inn, Inc.’s Motion for Default Judgment against Defendant Allen’s Dynamic Food, Inc. (“Allen’s Dynamic Food”) (Dkt. 89), Motion for Default Judgment against Defendant Pizza Inn Express, LLC (“Pizza Inn Express”) (Dkt. 90), and Motion for Default Judgment against Defendant Saba Mnaizel (Dkt. 91), all pursuant to Fed. R. Civ. P. 55(a).1 Plaintiff filed its Amended Complaint (Dkt. 51) on December 5, 2023. Defendants Pizza Inn Express and Saba Mnaizel have not filed an answer or any other responsive pleading. Defendant Allen’s Dynamic Food filed an answer to Plaintiff’s initial complaint, but on April 2, 2024, the Court granted counsel for Allen’s Dynamic Food’s Motion to Withdraw (Dkt. 70) and stated that Allen’s Dynamic Food would be subject to entry of a default judgment if it failed to obtain substitute counsel by

1 The Court refers to these Defendants collectively as “Defendants”. This Order does not affect Defendant Fawzi Allen Odetallah. May 2, 2024. To date, Allen’s Dynamic Food has not obtained substitute counsel. On May 21, 2024, Plaintiff moved the Court Clerk to enter default against these Defendants (Dkts. 80, 81, 81), which the Court Clerk did on May 22, 2024 (Dkts. 86, 87, 88). For the reasons

given below, the Court GRANTS in part and DENIES in part the Motions for Default Judgment (Dkts. 89, 90, 91). Background Because Defendants have failed to defend or otherwise respond to this action and default has been entered, the following factual allegations contained in Plaintiff's

Complaint are taken as true.2 On April 13, 2022, Plaintiff rightfully terminated the franchise agreement governing Allen Odetallah’s operation of the Pizza Inn restaurant located in Ponca City, Oklahoma. That same day, Plaintiff rightfully terminated the franchise agreement governing Mr. Odetallah and Allen’s Dynamic Food’s operation of the Pizza Inn Restaurant located in McAlester, Oklahoma. However, Saba Mnaizel,3 and

Pizza Inn Express continued to operate the Ponca City and McAlester Restaurants under the name “Pizza Inn” until the Court entered an Injunction (Dkt. 19) on April 19, 2023, prohibiting Mr. Odetallah and Allen’s Dynamic Foods from operating the Ponca City and

2 “An allegation—other than one relating to the amount of damages—is admitted if a responsive pleading is required and the allegation is not denied.” Fed. R. Civ. P. 8(b)(6). 3 In or around 2015, Mr. Mnaizel began operating both the Ponca City and McAlester Restaurants individually and through Pizza Inn Express. Neither Mr. Mnaizel nor Pizza Inn Express were ever Pizza Inn franchisees and were never authorized to use Pizza Inn’s trademarks. McAlester Restaurants, using Pizza Inn’s trademarks in connection with the restaurant, and selling pizza or Pizza Inn menu items at either restaurant. At some point after the Court entered the injunction, Mr. Mnaizel and Pizza Inn

Express converted the Ponca City and McAlester Restaurants names to “Inn and Out Pizza.” Mr. Mnaizel and Pizza Inn Express continued to operate the Ponca City Restaurant until it permanently closed on November 14, 2023. Similarly, Allen’s Dynamic Food, Mr. Mnaizel, and Pizza Inn Express continued to operate the McAlester Restaurant until it permanently closed on October 28, 2023.

Legal Standard As already discussed, the Court Clerk has entered defaults against Defendants pursuant to Federal Rule of Civil Procedure 55(a). Those defaults “concede[] the truth of the allegations of the Complaint regarding Defendants’ liability under all counts brought against them.”4 However, “it remains for the court to consider whether the unchallenged

facts constitute a legitimate cause of action, since a party in default does not admit mere conclusions of law.”5 The rule of concession “does not extend . . . to allegations about the amount of damages.”6 Furthermore, the Court must assure itself that it has subject matter and personal jurisdiction before entering default judgment. The Court must also determine

4 All. Laundry Sys. LLC v. Cowboy Laundry of Oklahoma Inc., No. CIV-20-136-PRW, 2020 U.S. Dist. LEXIS 195093, 2020 WL 6136785, at *2 (W.D. Okla. June 23, 2020). 5 2020 U.S. Dist. LEXIS 195093, [WL] at *2 (quoting Bixler v. Foster, 596 F.3d 751, 762 (10th Cir. 2010)). 6 Ross v. Jenkins, 325 F. Supp. 3d 1141, 1154 (D. Kan. 2018). if Plaintiff’s allegations constitute legitimate causes of action and, if so, to ascertain the amount of damages to which Plaintiff is entitled. A default judgment can be entered without a hearing if the amount of damages can

be ascertained.7 That is, sworn affidavits and supporting documentation may support an award of damages.8 Because damages for Plaintiff’s claims are capable of mathematical calculation, and Plaintiff has provided affidavits and supporting documentation, an evidentiary hearing is not necessary. Discussion

As relevant here, Plaintiff asserts a breach-of-contract claim and a trademark- infringement claim against Allen’s Dynamic Food regarding the McAlester Restaurant. Plaintiff also asserts trademark-infringement claims against Mr. Mnaizel and Pizza Inn Express regarding both the Ponca City and McAlester Restaurants. The Court first considers personal and subject matter jurisdiction, before determining the adequacy of

Plaintiff’s breach-of-contract and trademark-infringement claims. The Court then assesses Plaintiff’s requested damages. I. Jurisdiction “[W]hen entry of a default judgment is sought against a party who has failed to plead or otherwise defend, the district court has an affirmative duty to look into its jurisdiction

both over the subject matter and the parties.”9 First, the Court has subject matter jurisdiction

7 Marcus Food Co. v. DiPanfilo, 671 F.3d 1159, 1172 (10th Cir. 2011). 8 Fed. R. Civ. P. 55(a)(1). 9 Williams v. Life Sav. & Loan, 802 F.2d 1200, 1203 (10th Cir. 1986). under 28 U.S.C. § 1331, federal question jurisdiction, because Plaintiff’s Amended Complaint alleges violations of federal trademark statutes. The Court has supplemental jurisdiction over Plaintiff’s related Oklahoma common law breach-of-contract claim under

28 U.S.C. § 1367. Accordingly, the Court is satisfied that it has subject-matter jurisdiction over this case. Next, Plaintiff bears the burden of establishing personal jurisdiction over Defendants.10 However, Plaintiff “need only make a prima facie showing [of personal jurisdiction] if the motion [for default judgment] is decided only on the basis of the parties’

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