Platinum Rehabilitation, Ltd v. Platinum Home Healthcare Services, LLC
1:11-cv-01021
N.D. OhioSep 25, 2012Background
- Plaintiff Platinum Rehabilitation filed suit May 19, 2011 alleging passing off and unfair competition under 15 U.S.C. §1125 and Ohio Rev. Code §4165.02.
- Defendants Palladium (Platinum Home Healthcare Services, LLC) and Porter did not file an answer by the stipulated deadline, leading to a default judgment entered August 11, 2011 awarding $405,000 in damages and $13,448.75 in fees and costs.
- A Stipulated Preliminary Injunction Order negotiated June 27, 2011 set a July 12, 2011 answer deadline, which Defendants failed to meet.
- Defendants did not pursue relief from the default judgment until after garnishments began in September 2011, with new counsel filing a Rule 60(b)(6) motion on October 3, 2011.
- The court held a hearing on September 4, 2012 and denied the Rule 60(b)(6) motion, stating no exceptional circumstances justified relief from the default judgment.
- This memorandum opinion and order addresses Palladium’s Rule 60(b)(6) motion and denies relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether exceptional circumstances justify Rule 60(b)(6) relief | Palladium/Porter failed to show exceptional circumstances; prior counsel's conduct does not excuse fault. | Newman’s gross negligence/abandonment constitutes exceptional circumstances warranting relief. | Denied; no exceptional circumstances shown. |
| Whether damages should be revisited under Rule 60(b)(6) | Damages were properly supported by evidence and must stand. | Damages may be excessive given market differences; merits of damages should be reconsidered. | Denied; damages not shown to be excessive. |
Key Cases Cited
- Reno v. International Harvester Co., 115 F.R.D. 6 (S.D. Ohio 1986) (Rule 60(b)(6) relief for counsel abandonment when extraordinary circumstances shown)
- Nair v. Columbus State Community College, 2006 WL 13233 (S.D. Ohio Jan. 3, 2006) (Rule 60(b)(6) relief requires gross neglect and timely motion)
- Jinks v. AlliedSignal, Inc., 250 F.3d 381 (6th Cir. 2001) (burden on movant for relief under Rule 60(b)(6))
- Smith v. Secretary of Health and Human Services, 776 F.2d 1330 (6th Cir. 1985) (Rule 60(b) discretion broad but requires exceptional circumstances)
- Hopper v. Euclid Manor Nursing Home, Inc., 867 F.2d 291 (6th Cir. 1989) (equitable principles guide Rule 60(b) decisions)