Mattel, Inc. v. 99 Cents Only Stores

MEMORANDUM *

Ninety-nine Cents Only Stores (“99 Cents”) appeals the judgment and injunction entered by the district court pursuant to its offer under Rule 68 of the Federal Rules of Civil Procedure to plaintiff-appellee Mattel, Inc. (“Mattel”). The offer, which Mattel accepted, allowed entry of a permanent injunction against 99 Cents “on terms to be decided by the trial judge in his discretion” enjoining it from further sale or distribution of “the allegedly infringing products.” Both parties submitted proposed injunctions, and the district court entered Mattel’s broader version. On appeal, 99 Cents claims that the district court’s injunction goes beyond the terms of the Rule 68 offer and violates Rule 65(d), and that any ambiguities as to the meaning of the offer should be addressed through an evidentiary hearing. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm as modified in part and vacate in part.

We first address Mattel’s contention that, because 99 Cents consented to the entry of judgment via the Rule 68 offer, we either lack jurisdiction to hear this case or should find that 99 Cents waived its right to appeal. 1 Mattel is correct that “[t]he normal rule…