Derek Andrew Inc. v. Poof Apparel Corp.

MEMORANDUM **

Defendant Poof Apparel Corporation appeals the district court’s order denying its motion to set aside entry of default and the court’s award to Plaintiff Derek Andrew, Inc., of $685,807.70 in disgorged profits under the Lanham Act and Washington Consumer Protection Act. The relevant facts are set forth in an opinion filed this date.

1. We review for abuse of discretion the district court’s denial of a motion to set aside an entry of default under Federal Rule of Civil Procedure 55(c). Yusov v. Yusuf, 892 F.2d 784, 787 (9th Cir.1989). We find no abuse of discretion here, because Defendant’s “culpable conduct led to the default.” See Am. Ass’n Naturopathic Physicians v. Hayhurst, 227 F.3d 1104, 1108 (9th Cir.2000) (listing factors allowing court to deny motion to vacate default judgment). Defendant received actual notice of the filing of the action and intentionally failed to answer. Its belief that this was a small case more appropriate for settlement than litigation was insufficient justification for its failure to respond to the complaint. See Franchise Holding II, LLC v. Huntington Rests. Group, Inc., 375 F.3d 922 , 926 (9th Cir.2004) (rejecting similar…