FenF, LLC v. Handelnine Glogal LLC
5:24-cv-10288
| E.D. Mich. | Mar 17, 2025Background
- FenF, LLC filed suit against Handelnine Global, LLC alleging Lanham Act violations and copyright infringement related to goods sold via the navafresh.com website.
- Defendant failed to timely answer, resulting in a clerk’s entry of default, but later moved to set aside the default and to dismiss for lack of personal jurisdiction.
- Plaintiff alleged Defendant’s interactive website sold allegedly infringing products and displayed protected photographs to Michigan residents.
- Defendant argued it did not own the website and that minimal sales instigated by Plaintiff shouldn’t establish jurisdiction.
- The Court resolved the jurisdictional issue on written submissions, applying the Sixth Circuit test for specific personal jurisdiction.
- The clerk’s entry of default was set aside for good cause, but the request for dismissal based on lack of personal jurisdiction was denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Specific personal jurisdiction | Handelnine’s website sold and shipped infringing goods to MI in normal business | Does not own the website; any minimal sales were Plaintiff-instigated | Jurisdiction exists |
| Sufficiency of sales for jurisdiction | Even two sales into MI support jurisdiction; website is accessible, interactive | Two sales are insufficient and initiated by Plaintiff | Court accepts Plaintiff's position |
| Clerk’s entry of default—prejudice | No specific allegations of prejudice if default is set aside | Delay alone is not prejudice | No prejudice shown |
| Clerk’s entry of default—meritorious defense | Defendant lacked personal jurisdiction, denying MI sales | Defendant lacked personal jurisdiction | Defense is meritorious |
| Clerk’s entry of default—culpable conduct | No willful or reckless disregard by Defendant | Delay due to internet/connectivity, other personal issues, acted promptly | Not culpable |
Key Cases Cited
- Bird v. Parsons, 289 F.3d 865 (6th Cir. 2002) (personal jurisdiction requires amenability to service under state law and due process)
- Neogen Corp. v. Neo Gen Screening, Inc., 282 F.3d 883 (6th Cir. 2002) (personal jurisdiction standard for internet sales)
- Theunissen v. Matthews, 935 F.2d 1454 (6th Cir. 1991) (prima facie burden on plaintiff; affidavits viewed in plaintiff's favor)
- United Coin Meter Co. v. Seaboard Coastline R.R., 705 F.2d 839 (6th Cir. 1983) (standard for setting aside clerk’s entry of default)
- Shepard Claims Serv., Inc. v. William Darrah & Assocs., 796 F.2d 190 (6th Cir. 1986) (strong preference for decisions on the merits rather than by default)