Off-White LLC v. Aeunzn
- Rochon
- 1:21-cv-09613
- U.S. District Court · Southern District of New York
- 4
In Off-White v. Aeunzn, Judge Rochon stayed the case while the Second Circuit considered whether email service was legally sufficient.
The stay affects Off-White LLC, Aeunzn, and the other defendants by pausing the case, ending open motions, and postponing court appearances until after the Second Circuit decides the related service-of-process appeal. Off-White LLC must then provide a status update within seven calendar days.
What happened
Off-White LLC sued Aeunzn and other defendants, alleging they sold counterfeit products on Amazon.com that infringed Off-White’s trademarks. Off-White LLC asked the court to enter a default judgment, and the court scheduled a hearing on that request.
The court paused the case because a pending Second Circuit appeal could clarify whether serving people or entities in China by email complies with the Hague Convention and federal procedural rules. That issue could affect whether the court has authority over the defendants and whether Off-White LLC’s default-judgment request can proceed.
The court stayed the action, ended any open motions, and postponed all court appearances. Judge Jennifer L. Rochon ordered Off-White LLC to file a status letter within seven calendar days after the Second Circuit decides the related appeal.
The detailed version
- Off-White LLC v. Aeunzn · No. 1:21-cv-09613
- Rochon
- Jan. 17, 2023
Background
Off-White LLC brought this action against Aeunzn and other defendants, alleging that the defendants sold counterfeit products on Amazon.com and infringed Off-White’s trademarks without permission. Off-White LLC moved for default judgment and submitted supporting materials. The court had scheduled a hearing on that motion for February 14, 2023.
Before deciding the default-judgment motion, the court considered a pending appeal in Smart Study Co. LTD v. Acuteye-US. In that case, another Southern District of New York court denied default judgment after concluding that email service on individuals or entities located in China was not permitted under the Hague Convention or the Federal Rules of Civil Procedure. Because the defendants had not been properly served, that court found that it lacked personal jurisdiction, meaning legal authority over those defendants.
Reason for the Stay
Off-White LLC had obtained an order allowing service by electronic means on December 13, 2021, and later moved for default judgment. The court determined that the Second Circuit’s decision in Smart Study Co. would likely affect Off-White LLC’s motion. The appeal could clarify whether alternative service by email was sufficient to establish personal jurisdiction and whether it complied with the United States’ treaty obligations concerning service in China.
The court weighed the parties’ interests, the court’s interests, the interests of nonparties, and the public interest. It concluded that a stay would provide guidance before default judgment was considered and would avoid entering default before the Second Circuit clarified the relevant legal issues.
Ruling
The court stayed the action. It directed the Clerk of Court to mark the case as stayed, terminate any open motions, and adjourn all court appearances. Off-White LLC must file a letter within seven calendar days after the Second Circuit issues its decision in Smart Study Co., addressing whether the stay should be lifted, whether Off-White LLC intends to continue prosecuting the case, and proposed next steps. The opinion did not decide the trademark-infringement allegations or Off-White LLC’s motion for default judgment.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.