Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_04-cv-01431/USCOURTS-azd-2_04-cv-01431-0/pdf.json

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

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Best Western International, Inc., an

Arizona non-profit corporation, 

Plaintiff, 

vs.

S&S, LLC, a Missouri limited liability

corporation; and Shatish Shethi, 

Defendants. 

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No. CV-04-1431-PHX-DGC

ORDER

Pending before the Court is Plaintiff’s motion for entry of default judgment against

Defendant Shatish Shethi pursuant to Rule 55(b)(2) of the Federal Rules of Civil Procedure.

Doc. #10. For the reasons set forth below, the Court will grant the motion in part.

Plaintiff seeks a default judgment totaling $162,232.60: (1) $57,178.30, plus interest,

in damages for an outstanding balance on an open account that represents certain

membership fees, dues, charges, and costs and (2) $105,054.30 in liquidated damages for

the breach of the parties’ agreement based on the continued unauthorized use of Plaint iff’s

trademarks. Doc. #10 Ex. B. At the Court’s request, Plaintiff has submitted evidence

regarding the amount of damages it seeks and has informed the Court of the specific

counts of the complaint upon which such damages are based. Docs. ##12-14.

Having reviewed the evidence submitted by Plaintiff, the Court will grant default

judgment against Defendant Shethi on Counts I and II, breach of contract and open

Case 2:04-cv-01431-DGC Document 15 Filed 11/08/05 Page 1 of 2
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account, respectively, in the amount of $57,178.30, plus interest. Doc. #13 at 1-2, Ex. 1; see

Doc. #1 ¶¶ 35-48, 40-43, Ex. 1 ¶ 12. Wit h resp ect to Count III, post-termination use of

trademarks, the Court will grant default judgment in the amount of $87,972.30, which

constitutes damages for the 103-day period Defendant Shethi improperly used Plaintiff’s

trademarks as shown by Plaintiff’s evidence. Doc. #13 at 2-3; see Doc. #1 ¶¶ 49-53, Ex. 1

¶ 24. Plaintiff contends that it is ent itled to damages for an additional 20 days Defendant

Shethi allegedly used Plaintiff’s trademarks wit hout authorization. Doc. #13 at 3. Plaintiff,

however, has presented no evidence to support this allegation. The Court will accordingly

deny the motion for entry of default judgment with respect to this additional amount of

damages Plaintiff seeks on Count III. See Geddes v. United Fin. Group, 559 F.2d 557, 560

(9th Cir. 1977) (rejecting the plaintiffs’ assert ion that the defendants’ default admitted the

full amount of damages claimed and stating that “[t]he general rule of law is that upon

default the factual allegations of t he comp laint, 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 to which a responsive pleading is required, other than those as to the amount of

damage, are admitted when not denied in the responsive pleading.”) (emphasis added).

IT IS ORDERED:

1. Plaint iff’s motion for entry of default judgment against Defendant Shatish

Shethi (Doc. #10) is granted in part and denied in part.

2. Default judgment is ent ered in favor of Plaintiff and against Defendant Shethi

on Counts I and II of t he Complaint in the amount of $57,178.30, plus interest at the rate of

1.5% p er month from May 13, 2005 until paid in full, and on Count III in the amount of

$87,972.30.

3. Plaintiff shall file a report regarding the status of this case by November 18,

2005.

 DATED this 4th day of November, 2005.

Case 2:04-cv-01431-DGC Document 15 Filed 11/08/05 Page 2 of 2