JACKSON HEWITT INC. v. SEMO TAX SERVICES, INC. et al

Filing 17

ORDER granting pltf's 7 Motion for Default Judgment in the sum of $85,698.67 in favor of pltf. Jackson Hewitt Inc. and against the deft. Semo Tax Services, Inc. and Karen Lance; denying 9 Motion to Set Aside Default; granting 9 Motion for Leave to Appear Pro Hac Vice; and for permanent injunction. Signed by Judge Dennis M. Cavanaugh on 12/27/2011. (nr, )

NOT FOR PUBLICATION
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
:
:
JACKSON HEWITT INC.,
:
:
Plaintiff,
:
:
v.
:
SEMO TAX SERVICES, INC., a Missouri:
:
Corporation, and KAREN LANCE, an
:
individual,
:
:
Defendants.

Hon. Dennis M. Cavanaugh
ORDER
Civil Action No. 11-662 (DMC)(JAD)

DENNIS M. CAVANAUGH, U.S.D.J.:
This matter comes before the Court on the Motion of Plaintiff Jackson Hewitt, Inc.
(“Plaintiff”) for Default Judgment against Defendant SEMO Tax Services, Inc. (“SEMO”) and
Defendant Karen Lance (“Lance”) (collectively, “Defendants”) (ECF No. 7), and on the Motion of
Defendants to Vacate Default, to Allow Defendants to File an Answer Out of Time, and to Allow
the Vogler Law Firm, Two City Place Dr., Suite 150, St. Louis, Missouri, 63141-9037 to enter an
appearance Pro Hac Vice. (ECF No. 9). The Court having considered all submissions, and based
upon the Court’s Opinion filed this day;
IT IS this

27th

day of December, 2011;

ORDERED that Defendants’ Motion to Vacate Default is denied, and it is further
ORDERED that Defendants’ Motion to Allow Defendants to File an Answer Out of Time
is denied, and it is further
ORDERED that Defendants’ Motion for Admission Pro Hac Vice is granted, and it is

further
ORDERED that Plaintiff’s Motion for Default Judgment is granted; and it is further
ORDERED that Plaintiffs do recover of Defendants, jointly and severally, the sum of
$80,048.67, the amount claimed including interest at the contractually agreed upon rate of 18%, with
$580 in costs and disbursements, and attorneys fees in the sum of $5,070, amount in all to the sum
of $85,698.67; and it is further
ORDERED that beyond the date of this Order, post-judgment interest with respect to the
amount claimed will continue to accrue at the contractually agreed upon rate of 18% until the
Judgment is paid in full; and it is further
ORDERED Plaintiffs are entitled to a permanent injunction against Defendants on the
following terms:
1. Defendants, their employees, agents, independent contractors, and all those who act in
concert or participation with them, are permanently enjoined from marketing, promoting, or offering
tax return preparation services or any other businesses using the Jackson Hewitt Marks including,
without limitation, the use of any and all print or telecommunications, advertisements, drafts, labels,
signs, flyers, stationary, envelopes, forms, booklets, brochures, catalogues, circulars, pamphlets,
periodicals, bulletins, instructions, minutes, other communications, purchase orders, contracts,
agreements, licenses, books of account, orders, accounts, working papers and plans that refer to
relate in any manner to the Jackson Hewitt Marks or to names and marks confusingly similar to the
Jackson Hewitt Marks.
2. Defendants shall immediately provide Jackson Hewitt with access to and turn over all
originals and copies of client files and information including client names, addresses, telephone
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numbers and social security numbers on their computers from the former franchise territories.
3. Defendants shall immediately turn over to Jackson Hewitt the originals and all copies of
trade secret, confidential, and proprietary information as that term is defined in Section 12.3 of the
franchise agreements between the parties, whether contained on paper, disk or other computer
storage media for the Territories.
4. Defendants shall immediately and fully de-identify their locations within the Territories
from their appearance as Jackson Hewitt Tax Service franchise locations and, specifically, requiring
Defendants to discontinue the use of the Jackson Hewitt Marks, including any trade dress and signs
and any other forms of advertising or indicia that any location is operated as a Jackson Hewitt Tax
Service franchise location.
5. Defendants shall immediately notify the telephone company and all listing agencies and
advertising directories where their telephone numbers are listed, that Defendants no longer have the
right to use any telephone numbers, listing, and advertisements using the Jackson Hewitt Marks;
compelling Defendants to execute appropriate documents authorizing the transfer of all such
telephone numbers, listings and advertisements to Jackson Hewitt or its designee; and compelling
Defendants to deliver to Jackson Hewitt a copy of such documents of transfer.
6. Defendants are enjoined from directly or indirectly preparing or electronically filing
individual income tax returns, teaching tax courses, offering Financial Products or owning, engaging
in, operating, managing, purchasing, investing in (except to purchase stock in a publicly traded
company listed on the national stock exchange), franchising, lending money to, leasing or subleasing
to, or agreeing to sell or selling all or a majority of the assets of the franchise business or Territories
to any competing tax business, as defined by the franchise agreements, within the Territories, and
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within an area ten miles outside the boundaries of the Territories, until two years from the date of
this Court’s Order.
7. Within ten days after entry of this Order, Defendants shall file with the Court and serve
upon Plaintiff’s counsel a written report, under oath, setting forth in detail the manner in which they
have complied with this Order.

S/ Dennis M.Cavanaugh
Dennis M. Cavanaugh, U.S.D.J.

Orig.:
cc:

Clerk
All Counsel of Record
Hon. Joseph A. Dickson, U.S.M.J.
File

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