Rubin v. Carvi's Custom Painting, LLC

CourtDistrict Court, N.D. Texas
DecidedJuly 10, 2024
Docket4:24-cv-00005
StatusUnknown

This text of Rubin v. Carvi's Custom Painting, LLC (Rubin v. Carvi's Custom Painting, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rubin v. Carvi's Custom Painting, LLC, (N.D. Tex. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS FORT WORTH DIVISION

LAURIE RENEE RUBIN,

Plaintiff,

v. No. 4:24-cv-00005-P

CARVI’S CUSTOM PAINTING, LLC,

Defendant. MEMORANDUM ORDER & OPINION

Before the Court is Plaintiff’s Motion for Default Judgment. ECF No. 16. Having considered the Motion, exhibits, and applicable law, the Court concludes the Motion should be and hereby is GRANTED in part and DENIED in part. BACKGROUND Laurie Rubin is a freelance photographer whose works have been featured in numerous nationally prominent publications. Carvi’s Custom Painting is a local painting service. Carvi’s displayed one of Rubin’s photographs (the “Work”) on its website without permission. Rubin had previously registered copyrights in the Work on April 6, 2007. Rubin discovered Carvi’s unauthorized use, so she sued for willful infringement this past January. Though Rubin perfected service, Carvi’s never responded to the Complaint. At Rubin’s request, the Clerk of the Court entered Carvi’s default on February 28, 2024. The Court ordered Rubin to move for default judgment by June 28, 2024, bringing us here. LEGAL STANDARD Federal Rule of Civil Procedure 55 governs default judgments. If a defendant fails to “plead or otherwise defend” against a claim, the Clerk must enter default upon a requisite showing from the plaintiff. See FED. R. CIV. P. 55(a). If damages are readily calculable, the Court may enter default judgment upon timely motion from the plaintiff without conducting a hearing. See id. at 55(b). Still, “a party is not entitled to a default judgment as a matter of right, even where the defendant is technically in default.” Lewis v. Lynn, 236 F.3d 766, 767 (5th Cir. 2001) (cleaned up). Consistent with Fifth Circuit policy favoring judgments on the merits, default judgments are highly disfavored. See Sun Bank of Ocala v. Pelican Homestead & Sav. Ass’n, 874 F.2d 274, 276 (5th Cir. 1989). The default-judgment analysis is three-pronged. First, the Court asks if default judgment is procedurally proper. See Lindsey v. Prive Corp., 161 F.3d 886, 893 (5th Cir. 1998).1 Second, the Court “assess[es] the substantive merits of the plaintiff’s claim and determine[s] whether there is a sufficient basis in the pleadings for the judgment.” Nishimatsu Constr. Co., Ltd. v. Hous. Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975); see also Wooten v. McDonald Transit Assocs., 788 F.3d 490, 498 (5th Cir. 2015) (noting default judgments “must be supported by well- pleaded allegations and must have a sufficient basis in the pleadings” (cleaned up)). Third, the Court determines what relief is proper. See Jackson v. FIE Corp., 302 F.3d 515, 524–25 (5th Cir. 2002). In doing so, the Court assumes the plaintiff’s uncontested allegations are true, except those regarding damages. See United Artists Corp. v. Freeman, 605 F.2d 854, 857 (5th Cir. 1979). ANALYSIS As noted above, the Clerk entered Carvi’s default on February 28 and Rubin moved for default judgment on June 28. See ECF Nos. 10, 16. But default judgments are highly disfavored. See Sun Bank of Ocala, 874 F.2d at 276. Thus, “a party is not entitled to a default judgment as a matter of right, even where the defendant is technically in default.” Lewis, 236 F.3d at 767. Accordingly, the Court must still determine

1The Court answers this question with an eye toward six considerations: “(1) whether material issues of fact exist; (2) whether there has been substantial prejudice; (3) whether the grounds for default are clearly established; (4) whether the default was caused by good faith mistake or excusable neglect; (5) the harshness of a default judgment; and (6) whether the Court would think itself obliged to set aside the default on the defendant’s motion.” Id. whether default judgment is warranted for Rubin’s claims against Carvi’s. As explained below, it is. A. Default judgment is procedurally proper. Because default judgments are highly disfavored, the Court must ensure Rubin crossed her t’s and dotted her i’s procedurally. This isn’t judicial nit-picking; it’s a recognition of Fifth Circuit precedents favoring judgments on the merits rather than procedural technicalities. See Sun Bank of Ocala, 874 F.2d at 276. The Court’s analysis is framed by the six Lindsey factors. See 161 F.3d at 893. As explained below, Lindsey supports default judgment here. 1. Material Issues of Fact Default judgments are improper where material issues of fact remain notwithstanding a defendant’s default. Lindsey, 161 F.3d at 893; see also id. at 895 (considering only “purely factual material relating to the merits of the [claim]” (cleaned up)). No such issues exist here. As explained below, Carvi’s default means the Court must assume the truth of Rubin’s allegations (save those relating to damages). See generally Jackson v. FIE Corp., 302 F.3d 515, 525 n.9 (5th Cir. 2002). Yet Rubin came to bat, providing ample evidence to support the allegations in her Complaint. See, e.g., ECF Nos. 1, 1-1, 1-2, 16. The factual contours of Rubin’s claim are relatively limited, as she need only prove (1) ownership of a copyright in the Work and (2) Carvi’s unauthorized copying of the Work. See Feist Publ’ns. v. Rural Tel. Serv. Co., 499 U.S. 340, 342 (1991). As detailed further below, the Complaint’s uncontested allegations resolve any potential factual disputes vis-à-vis that bipartite showing. Accordingly, as no disputes of material fact remain for Rubin’s claim, see Feist, 499 U.S. at 342, the first Lindsey factor favors default judgment. See 161 F.3d at 893. 2. Substantial Prejudice Default judgments are also improper if they would substantially prejudice a litigant’s rights. See Lindsey, 161 F.3d at 893. Here, Carvi’s refusal to engage the litigation process substantially prejudiced Rubin’s rights. Rubin filed her Complaint on January 3, 2024. See ECF No. 1. She then went through process of obtaining local counsel (ECF No. 6), reporting her case to the Copyright Office (ECF No. 7), perfecting service upon Carvi’s (ECF No. 8), and requesting an entry of default from the Clerk (ECF No. 9). All told, Rubin has been stymied in vindicating her copyrights for over a year. See ECF No. 1 at 4 (noting Rubin discovered Carvi’s infringement on March 14, 2022). And five months of that delay have involved active litigation. Needless to say, needless delay is substantially prejudicial. See Sun Bank of Ocala, 874 F.2d at 276–77. As justice delayed is justice denied, every passing day adds insult to Rubin’s injury—compounding the prejudice caused by Carvi’s default. See id. On the flip side, nothing indicates Carvi’s would be unfairly prejudiced by a default judgment considering they eschewed all previous opportunities to contest the allegations against them. Accordingly, this factor also supports default judgment here. See Lindsey, 161 F.3d at 893. 3. Clearly Established Grounds for Default Default judgments can only stand on bedrock; a foundation of sand will not suffice.

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Bluebook (online)
Rubin v. Carvi's Custom Painting, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rubin-v-carvis-custom-painting-llc-txnd-2024.