In an unsuccessful bid to get a trademark case dismissed for lack of personal jurisdiction, a defendant listed its total sales as just over $23M. That motion was denied. Later the defendant’s counsel withdrew, follow by a default judgment against the defendant. A damages proceeding was held with no appearance by said defendant. During this proceeding, the sales number was used by the plaintiff, who, absent evidence of defendant’s costs, could rely on the sales figures as evidence of profits. Magistrate Judge Neiman agreed and recommended an award of $23 million in damages along with $24,000 in attorneys fees. Judge Ponsor adopted that recommendation without objection from the defendant (who, as Judge Ponsor noted, “lacks either the means or inclination to participate in this litigation, or both.”).
Two takeaways:
(1) Never include information in a sworn affidavit that doesn’t need to be there. It can only be used against you.
(2) Setting aside the question of whether the damages award will ever be collected, how often will a $23 million judgment be obtained for $24k in fees?
Ruggers, Inc. v. USA Rugby Football Union, Ltd., 09-30051-MAP (D. Mass. Apr. 21, 2011)
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