JTH Tax Inc. v. Knight

Filing 19

FINAL ORDER. Signed by Chief District Judge Rebecca Beach Smith on 3/17/13. (afar)

UNITED

STATES DISTRICT

EASTERN DISTRICT

COURT

OF VIRGINIA

Norfolk Division

JTH

TAX

INC. ,

d/b/a LIBERTY TAX SERVICE,
Plaintiff,
ACTION NO.

v.

KATHERINE A.

2:13cv583

KNIGHT,

Defendant.

FINAL

This

matter

comes

Default Judgment Against

filed

on

d/b/a

Liberty

was

before

referred

to

the

Katherina

January 17, 2014,
Tax

ORDER

Service
United

by

court

[sic]

the

28

U.S.C.

Procedure

§ 636(b)(1)(B)

72(b),

and

Local

and

Civil

including evidentiary hearings,
the

undersigned

proposed

ECF

Rule

findings

United

Recommendation was

Magistrate

Judge

States

filed

on

recommended

("Motion"),

JTH

Tax,

Inc.,

16.

The

matter

No.

Judge

Federal

Lawrence

72,

to

conduct

necessary,
of

fact,

Rule

and
if

Magistrate

Judge's

February 14, 2014.

granting

of

R.

Civil

hearings,

to submit

applicable,

recommendations for the disposition of the matter.
The

For

pursuant to the provisions

(C) ,

if

"Motion

Knight"

Magistrate

Leonard by Order of February 5, 2014,
of

A.

the

Plaintiff,

("Liberty").
States

on

and

ECF No. 17.
Report

ECF No.

Liberty's

to

Motion

and

18.

The

for

a

default judgment against the only named Defendant, Katherine A.

Knight,

granting Liberty's request for a permanent injunction

against Ms. Knight, and dismissing as moot Liberty's request for
a preliminary

injunction

Ms.

against

Knight.

By

copy

Report and Recommendation of the Magistrate Judge,

of

the

the parties

were advised of their right to file written objections thereto.
The court has

received no objections to the Magistrate Judge's

Report and Recommendation,

and the time for filing the same has

expired.

The court

does

recommendations
the

United

States

Accordingly,

judgment,

set

the

in

forth

in

the

Magistrate

court

Report

Judge

GRANTS

the

findings

and Recommendation of

filed on

Liberty's

February 14, 2014.

Motion

for

default

the

Katherine A.

complaint.

Knight,

Further,

the

for counts one,

court

GRANTS

two,

of

this

Final

Order.

Specifically,

under

the

and

Liberty's

request for a permanent injunction to commence on the date
entry

and

and default judgment is entered in Liberty's favor as

to the Defendant,

three

hereby adopt and approve

of

permanent

injunction, the court ORDERS the following:
Defendant,

employees,

and

Katherine

all

A.

other

participation with her shall,

Knight,

and

persons

in

all

of

active

within seven (7)

her

agents,

concert

or

calendar days of

the date of entry of this Final Order, accomplish the following:

1. Stop identifying herself as a Liberty Tax franchisee,
never

hold

out

as

a

former

cease,

and

not

thereafter commence,

trademarks or any marks

Liberty

that are

Tax

franchise

use

of

and

any of

the

likely to be confused

with registered trademarks of Liberty, including but not
limited to:

a. "Liberty Tax Service"
No.

1,

attach.

(Reg. No. 2,314,991), see ECF

1;

b. "Liberty Tax Service"
No.

2,479,692),

see id.,

c. "Liberty Income Tax"
attach.

logo

and service mark

attach.

(Reg.

2;

(Reg. No. 2,459,756),

see id.,

3;

d. "Liberty Tax"

(Reg. No. 2,465,670), see id., attach.

4;

e. "The

nonfunctional

elements

of

a

three-dimensional

sculpture in the shape of the Statue of Liberty on a

pedestal."

(Reg. No. 3,738,741), see id., attach. 5;

2. Stop using all literature and forms received from Liberty
and other items,

which bear the trademarks;

3. Deliver

to

Liberty

copies,

of

lists

containing

the

all

and

names

of

copies,

other

including

sources

customers

Knight's former Liberty franchises;

who

of

electronic

information

patronized

Ms.

4. Deliver
records,

to

Liberty

all

customer

tax

returns,

files,

and all copies thereof from Ms. Knight's former

Liberty franchises;

5. Deliver to Liberty the copy of the Operations Manual,

any

additional

copies

thereof,

and

any

updates

and

which

Liberty loaned to Ms. Knight;

6. Transfer to Liberty all telephone numbers,
advertisements

used

in

the

former

listings,

and

offices,

and

Liberty

deliver to Liberty copies of such documents of transfer;
and

7. Never divulge,

or use for the benefit of anyone outside

the Liberty system,
served

by

Ms.

any information concerning customers
Knight's

prior

Liberty

franchised

businesses.

Additionally,

the court ORDERS that,

from the date of entry

of this Final Order, Ms. Knight is prohibited from:

1. Directly or indirectly preparing or electronically filing
income tax returns, or offering bank products, within her
former

Liberty

CA141,

or

territories:

within

25

miles

CA127,
of

the

CA269,

CA270,

boundaries

of

and
such

territories for the period of two years; and

2. Directly or

indirectly soliciting

person or entity served by Ms.

the

patronage

Knight's

of

any

former Liberty

offices

during

the

time

period

between

August 20, 2012

through August 30, 2013, for the purpose of offering such

person or entity tax preparation,
bank

products

CA127,

CA269,

boundaries

within
CA270,

of

such

her

electronic filing,

former

and CA141,

Liberty

or

territories,

or within 25 miles of the

territories,

for

a

period

of

two

years.

Finally,
injunction,

the

ECF No.

Plaintiff's

motion

for

a

preliminary

3, is DISMISSED AS MOOT.

The Clerk shall

forward a copy of

this

Final Order to

all

parties.
IT

IS

SO

ORDERED.

/S/

Rebecca Beach Smith
Chief

United States District Judge ^fSk
REBECCA

BEACH

CHIEF UNITED

March

|1 20

14

SMITH

STATES DISTRICT

JUDGE