Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_05-cv-01438/USCOURTS-azd-2_05-cv-01438-0/pdf.json

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

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Best Western International, Inc., an

Arizona non-profit corporation, 

Plaintiff, 

vs.

VIP Lodging Group, Inc., a Georgia

corporation; and Vallabh T. Patel, an

individual, 

Defendants. 

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

No. CV-05-1438-PHX-DGC

ORDER

Pending before the Court are Plaintiff’s motion for preliminary injunction and motion

for default judgment. Docs. ##2, 7. For the reasons set forth below, the Court will grant

the motion for default judgment in part and deny the motion for preliminary injunction as

moot.

Background

Plaint iff commenced this action by filing a verified complaint and a motion for

preliminary injunction against Defendants on M ay 17, 2005. Docs. ##1-2. The complaint

purports to state nine claims for relief: breach of contract, open account, post-termination

use of trademarks, federal trademark infringement, false designation of origin and unfair

competition, federal trademark dilution, state law unfair competition, state law trademark

dilution, and common law trademark infringement. Doc. #1 ¶¶ 33-76. The complaint seeks

Case 2:05-cv-01438-DGC Document 9 Filed 11/08/05 Page 1 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1

Plaintiff does not seek default judgment with respect to Count IV, federal trademark

infringement . Doc. #7 at 2-3; see Doc. #1 ¶¶ 48-53. Plaintiff seeks default judgment with

respect to “Counts X and XI,” but no such counts are plead in the complaint. See id.

- 2 -

damages, injunctive relief, and attorneys’ fees and costs. Id. at 14-16.

Defendants did not answer or otherwise respond to the comp laint. Plaintiff thus

filed an application for entry of default on August 9, 2005. Doc. #5. The Clerk of Court

subsequently entered Defendants’ default pursuant to Rule 55(a) of the Federal Rules of

Civil Procedure. Doc. #6. Plaintiff filed the present motion for default judgment and

supporting evidence on October 13, 2005. Docs. ##7-8.

Discussion

Pursuant to Rule 55(b)(2), Plaintiff seeks default judgment as follows: (1) on Counts

I and II of the complaint in t he amount of $59,187.52, plus interest, for an outstanding

balance on an open account, (2) on Count III in the amount of $288,745.00, continuing at

the rate of $1,343.00 per day from August 25, 2005 until Defendants show that they have

ceased using Plaintiff’s trademarks and service marks, (3) on Counts V through IX,

enjoining Defendants and their agents from using Plaintiff’s marks, and (4) an award of

attorneys’ fees and costs in the amount of $2,400.86. Doc. #7 at 2-3.1

Having reviewed the evidence Plaintiff submitted in support of its motion, the Court

will grant default judgment against Defendants on Counts I and II in the amount of

$59,187.52, plus interest. Doc. #8 ¶¶ 6-8, Ex. A; see Doc. #1 ¶¶ 33-42. The Court will also

grant Plaintiff the injunctive relief it seeks in Counts V through IX and reasonable

attorneys’ fees and costs. Docs. ##7 Ex. 1, 8 ¶ 9; see Doc. #1 ¶¶ 54-76, at 16.

With respect to Count III, post-termination use of trademarks, Plaintiff states that

“[u]sing the information provided to [Plaintiff] by Defendants concerning room rates and

numbers of rooms, the formula for liquidated damages calculates to $1,343.00 per day .” 

Doc. #8 ¶ 11. Plaintiff, however, has presented no evidence to support this calculation.

See Geddes v. United Fin. Group, 559 F.2d 557, 560 (9th Cir. 1977) (rejecting the p laintiffs’

assertion that the defendants’ default admitted the full amount of damages claimed and

Case 2:05-cv-01438-DGC Document 9 Filed 11/08/05 Page 2 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

2

Plaintiff has presented evidence that Defendants improperly used Plaintiff’s marks

for 166 days, from January 22 until July 7, 2005. See Doc. #8 ¶ 9, Exs. B & C.

- 3 -

stating t hat “ [t ]he general rule of law is that upon default the factual allegations of the

complaint, except those relating to the amount of damages, will be taken as true”)

(emphasis added); Fed. R. Civ. P. 8(d) (“Averments in a pleading t o which a responsive

p leading is required, other than those as to the amount of damage, are admitted when not

denied in the responsive pleading.”) (emphasis added).2 By November 25, 2005, Plaintiff

shall submit evidence to the Court sufficient to est ablish the mean of Defendants’ room

rates per day and the total number of rooms. See Doc. #1 ¶¶ 43-47, Ex. 1 ¶ 24; see also Fed.

R. Civ. P. 55(b)(2) (“If, in order to enable the court to enter judgment [,] . . . it is necessary

to take an account or to determine the amount of damages . . . the court may conduct such

hearings or order such references as it deems necessary[.]”). 

IT IS ORDERED:

1. Plaintiff’s motion for default judgment (Doc. #7) is granted in part.

2. Default judgment is entered in favor of Plaintiff and against Defendants on

Counts I and II of the complaint in the amount of $59,187.52, plus interest at the rate of

1.5% per month from August 1, 2005 until paid in full.

3. With respect to Count III, Plaintiff shall submit evidence sufficient to

establish the mean of Defendants’ room rates per day and the t otal number of rooms by

November 25, 2005.

4. Default judgment is ent ered in favor of Plaintiff and against Defendants on

Counts V through IX of the complaint. Defendants and their officers, agents, servants, and

employees are enjoined from:

a. Using, displaying, advertising, or authorizing any ot her p erson to use,

display, or advertise Plaintiff’s “Best Western” trademarks and service marks.

b. Using, displaying, advertising, or authorizing any other person to use,

display, or advertise any simulation, reproduction, counterfeit, copy, or colorable imitation

Case 2:05-cv-01438-DGC Document 9 Filed 11/08/05 Page 3 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

- 4 -

of Plaintiff’s “Best Western” trademarks and service marks in any manner likely to cause

confusion, mistake, or deception as to the identity or source thereof.

c. Committing any acts intent ionally calculated to cause others to believe

t hat Defendants are in any way connected to, associated with, or sponsored by Plaintiff.

5. Plaintiff’s motion for preliminary injunction (Doc. #2) is denied as moot. 

6. Plaintiff is awarded its attorneys’ fees and costs in the amount of $2,400.86.

DATED this 4th day of November, 2005.

Case 2:05-cv-01438-DGC Document 9 Filed 11/08/05 Page 4 of 4