Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_07-cv-00358/USCOURTS-azd-2_07-cv-00358-1/pdf.json

Nature of Suit Code: 840
Nature of Suit: Trademark
Cause of Action: 15:1051 Trademark Infringement

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UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Best Western International, Inc., 

Plaintiff,

v.

Akshay Hotels, Inc., and Shahzad Haque,

Defendants.

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No.CV: 07-358-PHX-SMM

ORDER 

Pending before the Court is Plaintiffs' Motion for Entry of Default Judgment against

Defendants (Doc. 15), filed pursuant to Rule 55(b)(2) of the Federal Rules fo Civil Procedure,

and the Local Rules of this Court. 

Upon entry of default, a district court may enter default judgment under certain

circumstances, except against an infant or incompetent unless represented by a general guardian,

committee, conservator, or other individual who has appeared before the Court. FED. R. CIV.

P. 55(b)(2). The district court's decision to enter default judgment is discretionary, and it is

within the court's power to decline to enter default judgment in favor of a party whose claims

are meritless. Aldabe v. Aldabe, 616 F.2d 1089, 1092-93 (9th Cir. 1980). When evaluating

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Breach of contract (Count One), Payment Due and Owing on an Open Account (Count

Two), Post-termination Use of Trademarks (Count Three), Federal Trademark Infringement

(Lanham Act §32(1), 15 U.S.C. §1114(1)(Count Four), False Designation of Origin and Unfair

Competition (Lanham Act §43(a), 15 U.S.C. §1125)(Count Five), Federal Trademark Dilution

Under 15 U.S.C. § 1125(c)(Count Six), Unfair Competition under Arizona Law (Count Seven),

Trademark Dilution Under A.R.S. § 44-1448.01 (Count Eight),Common Law Trademark

Infringement (Count Nine).

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whether or not to enter default judgment, a district court may also consider, among other things,

the sufficiency of the complaint, Alan Neuman Prods., Inc. v. Albright, 862 F.2d 1388, 1392

(9th Cir. 1988), the sum at stake, Eitel v. McCool, 782 F.2d 1470, 1472 (9th Cir. 1986), and

whether the default was due to excusable neglect, Id. at 1472.

On May 24, 2007, the Clerk of the Court entered the default of the Defendants. Despite

this, the Court has yet to receive any type of responsive pleading from Defendants. The default

established Defendants' liability on all nine counts in the Complaint.1

 

The Court finds that Best Western International, Inc., an Arizona nonprofit corporation

has a meritorious claim, to the amount requested in its motion and supported by affidavit, and

the default by Defendants was not apparently due to excusable neglect, as they had notice of the

instant lawsuit. Therefore, default judgment against Defendants Akshay Hotels, Inc., and

Shahzad Haque and in favor of Plaintiff Best Western International, Inc., is appropriate and will

be entered accordingly.

Based upon Plaintiff's Motion For Default Judgment By the Court, and good cause

appearing therefor, 

IT IS HEREBY ORDERED GRANTING Plaintiff judgment against Defendants

Akshay Hotels, Inc., a Florida corporation and Shahzad Haque, and each of them, as follows::

1. On Counts I and II of the Complaint in the amount of $20,872.06, plus interest

thereon at the rate of 1.5% per month (pursuant to the Membership Agreement)

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from and after January 1, 2007;

2. On Count III of the Complaint in the amount of $233,629.20 (pursuant to the

Membership Agreement and affidavit) ;

3. On Counts V, VI, VII, VIII, and IX, X and XI, that Defendants and their officers,

agents, servants, employees and attorneys, and those persons in active concert or

participation with said corporation be enjoined from:

i. using, displaying, advertising, authorizing, or licensing any other person

to use, display or advertise Plaintiff's "Best Western" trademarks and service

marks, or any portion thereof;

ii. using, displaying, advertising, authorizing, or licensing any other person

to use, display or advertise Plaintiff's "Best Western" trademarks and service

marks or any simulation, reproduction, counterfeit, copy or colorable imitation

thereof in any manner likely to cause confusion, mistake or deception as to the

identity or source thereof;

iii. using, displaying, advertising, authorizing or licensing any other person

to use, display or advertise Plaintiff's "Best Western" trademarks or anything

consisting of or incorporating any one or more words or designs which contain

any part of any Best Western trademark or symbol;

iv. committing any acts calculated to cause others to believe that defendant

is in any way connected to, associated with, or sponsored by the plaintiff;

v. Otherwise engaging in any other activity or conduct using Plaintiff's "Best

Western" trademarks and service marks or any simulation, reproduction,

counterfeit, copy or colorable imitation thereof in any manner likely to cause

others to falsely believe that defendant is in any way connected to, associated

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with, or sponsored by the Plaintiff, Best Western International, Inc.

d. On all Counts of the Complaint, for Plaintiff's reasonable attorneys' fees and

expenses incurred herein in the amount of $2,753.69.

IT IS FURTHER ORDERED that the Clerk of Court shall enter judgment in favor of

Plaintiff Best Western International, Inc., an Arizona nonprofit corporation and terminate this

action.

DATED this 10th day of August, 2007.

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