1:24-cv-03386
D. Colo.Jan 30, 2025Background
- Touchstone Life Essentials, Inc. sued Healed LLC for copyright infringement, false designation of origin, false advertising (Lanham Act), common law unfair competition, and violation of Colorado Consumer Protection Act.
- Healed LLC has not appeared in the case, and default was entered against it on January 2, 2025.
- Touchstone submitted a motion for entry of a final consent judgment and permanent injunction, based on an agreement purportedly signed by a representative of Healed LLC.
- The motion was unopposed but lacked detailed justification and supporting evidence, including proof of the representative's authority and valid legal representation for Healed LLC.
- The court noted federal rules require LLCs to be represented by counsel and questioned the appropriateness of entering a consent judgment under these circumstances.
- Court practice discourages retaining jurisdiction over settled cases unless extraordinary circumstances are shown, which Touchstone did not articulate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Can the court enter a consent judgment on agreement by parties when defendant has not appeared? | Parties agreed to a consent judgment; motion unopposed. | No appearance or arguments presented. | Denied; proper procedure requires appearance/default judgment. |
| Is a consent judgment valid if signed by a non-attorney representative of the defendant LLC? | Signature by LLC "Authorized Representative" is sufficient. | No appearance or arguments presented. | Denied; LLCs must appear through counsel. |
| Must the court retain jurisdiction over a settled case and enter consent judgment and permanent injunction? | Proposed order seeks court's ongoing jurisdiction. | No appearance or arguments presented. | Denied; retention of jurisdiction not justified. |
| Is one-sentence motion without specific justification or supporting evidence sufficient? | Submitted brief, unopposed motion relying on party agreement. | No appearance or arguments presented. | Denied; motion gave no legal or factual argument. |
Key Cases Cited
- Local No. 93, Int’l Ass’n of Firefighters, AFL–CIO C.L.C. v. City of Cleveland, 478 U.S. 501 (1986) (federal courts may enforce consent decrees but are not mere recorders of private settlements)
- Harrison v. Wahatoyas, L.L.C., 253 F.3d 552 (10th Cir. 2001) (LLCs and corporations must be represented by an attorney in federal court)