Tempur Sealy International, Inc. v. Seltyk Mattress, Inc.

CourtDistrict Court, C.D. California
DecidedApril 25, 2023
Docket2:22-cv-06194
StatusUnknown

This text of Tempur Sealy International, Inc. v. Seltyk Mattress, Inc. (Tempur Sealy International, Inc. v. Seltyk Mattress, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tempur Sealy International, Inc. v. Seltyk Mattress, Inc., (C.D. Cal. 2023).

Opinion

O 1

2 3 4 5 6 7

8 United States District Court 9 Central District of California

11 TEMPUR SEALY INTERNATIONAL, Case № 2:22-cv-06194-ODW (PVCx) INC. et al., 12 Plaintiffs, 13 ORDER GRANTING PLAINTIFFS’ v. 14 MOTION FOR DEFAULT 15 SELTYK MATTRESS INC., JUDGMENT [22]

16 Defendant.

17 18 I. INTRODUCTION 19 Plaintiffs Tempur Sealy International, Inc.; Tempur-Pedic Management, LLC; 20 Tempur-Pedic North America, LLC; Tempur World, LLC; Dan-Foam APS; and Sealy 21 Technology LLC (“Tempur Sealy”) move for entry of default judgment against 22 Defendant Seltyk Mattress Inc., on Tempur Sealy’s Complaint for trademark 23 infringement and counterfeiting. (Mot. Default J. (“Motion” or “Mot.”), ECF No. 22.) 24 For the reasons that follow, the Court GRANTS Tempur Sealy’s Motion. 25 II. BACKGROUND 26 Tempur Sealy develops, manufactures, supplies, and sells premium mattresses, 27 pillows, and other comfort products (“Tempur Sealy Products”) bearing trademarks 28 owned by Tempur Sealy (“Tempur Sealy Marks”). (Compl. ¶¶ 12–18, ECF No. 1.) 1 Some of the Tempur Sealy Marks are word marks, like “TEMPUR-PEDIC,” 2 “POSTUREPEDIC,” and “POSTUROPEDICO,” and other Marks are designs like the 3 Stearns & Foster fleur-de-lis. (Id. ¶¶ 16–19.) Each year, Tempur Sealy spends 4 millions of dollars advertising and promoting its products to establish the Tempur 5 Sealy Marks in the minds of customers as synonymous with a source of high-quality 6 bedding products. (Id. ¶ 20.) Tempur Sealy tightly controls authorized sales of 7 Tempur Sealy Products to ensure this high quality and reputation. (Id. ¶¶ 25, 33, 35.) 8 Seltyk is not an authorized retail dealer of Tempur Sealy Products. (Id. ¶ 37.) 9 In March 2022, Tempur Sealy learned that Seltyk was using the Tempur Sealy Marks 10 online and on exterior signage at Seltyk’s retail location in Los Angeles, to advertise 11 and sell Seltyk’s mattress products. (Id. ¶¶ 38–39.) Tempur Sealy also learned that 12 Seltyk was selling goods with “TEMPUR-PEDIC” and “POSTURE-O-PEDIC” word 13 marks and the fleur-de-lis design, each of which is identical or similar to Tempur 14 Sealy Marks. (Id. ¶¶ 39–40.) 15 In March and May 2022, counsel for Tempur Sealy contacted Seltyk, notifying 16 it of Tempur Sealy’s objections and demanding that Seltyk cease and desist 17 advertising and selling the infringing and counterfeit goods. (Id. ¶¶ 42–43.) After 18 receiving these cease-and-desist letters, Seltyk continued the unauthorized advertising 19 and sales. (Id. ¶¶ 44, 48; Decl. Mark Riera iso Mot. (“Riera Decl.”) ¶ 16, Ex. E 20 Image 2 (October 23, 2022 Seltyk Instagram post displaying Seltyk mattress with 21 Tempur Sealy Marks), ECF No. 22-1.) 22 On August 31, 2022, Tempur Sealy filed this action against Seltyk, asserting 23 federal and California state law claims for trademark infringement, trademark 24 counterfeiting, unfair competition, false advertising, and trademark dilution. (Compl. 25 ¶¶ 57–97.) Tempur Sealy served Seltyk with the Complaint, but Seltyk did not timely 26 respond. (Proof of Service, ECF No. 14; Order Show Cause (“OSC”) Default, ECF 27 No. 18.) Instead, counsel claiming to represent Seltyk contacted Tempur Sealy, 28 acknowledged the Summons and Complaint, and requested an extension of time to 1 respond. (Riera Decl. ¶¶ 12–13, 22.) Tempur Sealy offered a 30-day extension. (Id. 2 ¶ 14.) Seltyk’s purported counsel did not reply to that offer. (Id. ¶¶ 15, 20.) 3 After Seltyk’s time to respond to the Complaint elapsed, Tempur Sealy 4 requested entry of Seltyk’s default. (Req. Default, ECF No. 19.) The Clerk entered 5 Seltyk’s default, and on November 17, 2022, Tempur Sealy filed this Motion. 6 (Default, ECF No. 20; Mot.) 7 III. LEGAL STANDARD 8 Federal Rule of Civil Procedure (“Rule”) 55(b) authorizes a district court to 9 grant a default judgment after the Clerk enters default under Rule 55(a). However, 10 before a court can enter a default judgment against a defendant, the plaintiff must 11 satisfy the procedural requirements in Rule 54(c) and 55, and Central District Civil 12 Local Rules 55-1 and 55-2. Even if these procedural requirements are satisfied, “[a] 13 defendant’s default does not automatically entitle the plaintiff to a court-ordered 14 judgment.” PepsiCo, Inc., v. Cal. Sec. Cans, 238 F. Supp. 2d 1172, 1174 (C.D. Cal. 15 2002). Instead, “[t]he district court’s decision whether to enter a default judgment is a 16 discretionary one.” Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). 17 Generally, after the Clerk enters a default, the defendant’s liability is 18 conclusively established, and the well-pleaded factual allegations in the plaintiff’s 19 complaint “will be taken as true” except those pertaining to the amount of damages. 20 TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917–18 (9th Cir. 1987) (per curiam) 21 (quoting Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 1977)). The court 22 need not make detailed findings of fact in the event of default, except as to damages. 23 See Adriana Int’l Corp. v. Thoeren, 913 F.2d 1406, 1414 (9th Cir. 1990). 24 IV. DISCUSSION 25 Tempur Sealy satisfies the procedural requirements for default judgment and 26 establishes that entry of default judgment against Seltyk is substantively appropriate. 27 28 1 A. PROCEDURAL REQUIREMENTS 2 Local Rule 55-1 requires that the movant establish: (1) when and against which 3 party default was entered; (2) the pleading to which default was entered; (3) whether 4 the defaulting party is a minor or incompetent person; (4) that the Servicemembers 5 Civil Relief Act does not apply; and (5) that the defaulting party was properly served 6 with notice, if required under Rule 55(b)(2). In turn, Rule 55(b)(2) requires written 7 notice on the defaulting party if that party “has appeared personally or by a 8 representative.” 9 Tempur Sealy meets these requirements. On October 27, 2022, the Clerk 10 entered default against Seltyk as to Tempur Sealy’s Complaint. (See Default.) 11 Tempur Sealy’s counsel submits declaration testimony that Seltyk is not an infant or 12 incompetent person and that the Servicemembers Civil Relief Act does not apply. 13 (Riera Decl. ¶ 27.) Finally, Seltyk has not appeared in this case, so written notice of 14 the Motion was not required. Nevertheless, Tempur Sealy served notice of this 15 Motion on Seltyk’s registered agent and also on Seltyk’s purported counsel, in 16 accordance with Rule 55(b)(2). (Id.) Thus, Tempur Sealy satisfies the procedural 17 requirements. 18 B. EITEL FACTORS 19 In considering whether entry of default judgment is warranted, courts consider 20 the “Eitel factors”: (1) the possibility of prejudice to plaintiff; (2) the merits of 21 plaintiff’s substantive claim; (3) the sufficiency of the complaint; (4) the sum of 22 money at stake; (5) the possibility of a material factual dispute; (6) whether the default 23 was due to excusable neglect, and (7) the strong policy favoring decisions on the 24 merits. See Eitel v. McCool, 782 F.2d 1470, 1471–72 (9th Cir. 1986). “Of all the Eitel 25 factors, courts often consider the second and third factors to be the most important.” 26 Vietnam Reform Party v. Viet Tan-Vietnam Reform Party, 416 F. Supp. 3d 948, 962 27 (N.D. Cal. 2019) (internal quotation marks omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alvera M. Aldabe v. Charles D. Aldabe
616 F.2d 1089 (Ninth Circuit, 1980)
Gary R. Eitel v. William D. McCool
782 F.2d 1470 (Ninth Circuit, 1986)
Reno Air Racing Association, Inc. v. Jerry McCord
452 F.3d 1126 (Ninth Circuit, 2006)
Rearden LLC v. Rearden Commerce, Inc.
683 F.3d 1190 (Ninth Circuit, 2012)
Phillip Morris USA Inc. v. Shalabi
352 F. Supp. 2d 1067 (C.D. California, 2004)
Pepsico, Inc. v. California Security Cans
238 F. Supp. 2d 1172 (C.D. California, 2002)
Landstar Ranger, Inc. v. PARTH ENTERPRISES, INC.
725 F. Supp. 2d 916 (C.D. California, 2010)
Sunearth, Inc. v. Sun Earth Solar Power Co.
839 F.3d 1179 (Ninth Circuit, 2016)
Octane Fitness, LLC v. Icon Health
134 S. Ct. 1749 (Supreme Court, 2014)
Wecosign, Inc. v. IFG Holdings, Inc.
845 F. Supp. 2d 1072 (C.D. California, 2012)
Adriana International Corp. v. Thoeren
913 F.2d 1406 (Ninth Circuit, 1990)
Ebay Inc. v. Mercexchange, L. L. C.
547 U.S. 388 (Supreme Court, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
Tempur Sealy International, Inc. v. Seltyk Mattress, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/tempur-sealy-international-inc-v-seltyk-mattress-inc-cacd-2023.