J & J Sport Productions, Inc., v. Pinon
Filing
23
ORDER Granting 15 MOTION for Default Judgment; 22 MOTION for Attorney Fees and Costs. Signed by Hon. Beth Labson Freeman on 7/18/2014. (blflc2, COURT STAFF) (Filed on 7/18/2014)
1
2
3
UNITED STATES DISTRICT COURT
4
NORTHERN DISTRICT OF CALIFORNIA
5
SAN JOSE DIVISION
6
7
J & J SPORTS PRODUCTIONS, INC.,
8
Plaintiff,
10
ORDER GRANTING PLAINTIFF’S
MOTION FOR DEFAULT JUDGMENT
v.
9
MARISOL LOPEZ PINON,
Re: ECF No. 15
Defendant.
11
United States District Court
Northern District of California
Case No. 5:13-cv-05559-BLF
12
Plaintiff J & J Sports Productions, Inc. (“Plaintiff”) has moved for the entry of default
13
14
judgment against defendant Marisol Lopez Pinon, owner of Martha’s Hair Styling aka Belleza
15
Latina’s Salon. Plaintiff is requesting damages from Defendant’s alleged unlawful interception
16
and intentional exhibition of a boxing match at Defendant’s hair salon. For the following reasons,
17
the motion for default judgment is GRANTED.
18
19
I.
BACKGROUND
Plaintiff is a commercial distributor and licensor of sporting events. (Compl. ¶ 16, ECF 1)
20
By contract, J & J secured the domestic commercial exhibition rights to broadcast the “Manny
21
Pacquiao and Juan Manuel Márquez, IV Welterweight Fight Program” (“Program”) telecast
22
nationwide on Saturday, December 8, 2012. (Id. ¶ 14) The interstate transmission of the Program
23
was made available only to J & J’s customers. (Id. ¶ 15) In order to lawfully broadcast the
24
Program, commercial entities were required to enter into a sublicensing agreement with J & J and
25
pay the associated licensing fees. (Id.)
26
27
28
On December 8, 2012, investigator Gary Gravelyn observed the alleged unlawful
exhibition of the Program at Defendant’s commercial establishment, Martha’s Hair Styling,
Case No. 5:13-cv-05559-BLF
ORDER GRANTING PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT
1
located in San Jose, California. (Decl. of Gary Gravelyn, at 1, ECF 15) Based on Gravelyn’s
2
observations, J & J alleges that Defendant intercepted the Program unlawfully, and intentionally
3
exhibited it for the purpose of direct and/or indirect commercial advantage and/or private financial
4
gain. (Compl. ¶ 18)
5
In his affidavit, Gravelyn states that Martha’s Hair Styling has a capacity of approximately
6
forty people. (Gravelyn Decl., at 1) Gravelyn observed one forty-inch television located on the
7
counter opposite the entrance. (Id.) In the two minutes Gravelyn spent at Defendant’s salon he
8
conducted three head counts, counting approximately eleven, ten, and ten patrons, respectively,
9
inside the establishment. (Id., at 1-2) Gravelyn’s affidavit did not expressly describe how many
of such patrons were watching the Program. Gravelyn testifies that the establishment has a
11
United States District Court
Northern District of California
10
satellite dish, but that he did not observe a cable box. (Id.)
12
It is unclear whether Defendant charged a fee to enter the establishment. Plaintiff has
13
provided directly conflicting statements on this point. Plaintiff states: “In this instance, I would
14
further request that the Court take notice that the instant pirate establishment obtained a cover
15
charge from its patrons and to view the Program. Martha’s Hair Styling a/k/a Belleza Latina’s
16
Salon did not require a cover charge to enter the establishment.” (Pl.’s Mot. for Default J., at 11,
17
ECF 15) Gravelyn testifies that he was not required to pay to enter the establishment. (Gravelyn
18
Decl., at 1) The Court will take Gravelyn’s affidavit as true and assume that no cover charge was
19
required to enter the establishment. Although there are allegations that beer was consumed on the
20
premises, there are no allegations of increased drink prices during the Program, or even that
21
patrons paid Defendant for the drinks. (Id.) Plaintiff also does not allege that Defendant is a
22
repeat offender of the alleged unlawful conduct.
23
Plaintiff filed suit against Defendant on December 2, 2013. (See Compl.) Plaintiff has
24
alleged violations of the Federal Communications Act, 47 U.S.C. § 605, Cable and Television
25
Consumer Protection Act 47 U.S.C. § 553, California Civil Code § 3336, and California Business
26
27
28
2
Case No. 5:13-cv-05559-BLF
ORDER GRANTING PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT
1
and Professions Code § 17200, et. seq.1 Defendant has failed to appear or otherwise respond to
2
the Summons and Complaint within the time prescribed by the Federal Rules of Civil Procedure.
3
On February 18, 2014 Plaintiff filed a request for entry of default judgment. (Pl.’s Mot. for Entry
4
of Default, at 1, ECF 11) The Court Clerk entered default against Defendant on February 21,
5
2014. (Entry of Default, at 1, ECF 12)
6
II.
LEGAL STANDARDS
Pursuant to Federal Rule of Civil Procedure 55(b), the Court may enter default judgment
7
8
against a defendant who has failed to plead or otherwise defend an action. “The district court’s
9
decision whether to enter a default judgment is a discretionary one.” Aldabe v. Aldabe, 616 F.2d
10
1089, 1092 (9th Cir. 1980).
The Ninth Circuit has provided seven factors for consideration by the district court in
United States District Court
Northern District of California
11
12
exercising its discretion to enter default judgment. These factors, known as the “Eitel factors,”
13
are: (1) the possibility of prejudice to the plaintiff; (2) the merits of plaintiff’s substantive claim;
14
(3) the sufficiency of the complaint; (4) the sum of money at stake in the action; (5) the possibility
15
of dispute concerning material facts; (6) whether default was due to excusable neglect; and (7) the
16
strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits.
17
Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986). When assessing these factors, and after
18
entry of default, all factual allegations in the complaint are taken as true, except those with regard
19
to damages. Televideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 1987).
20
III.
DISCUSSION
21
A.
22
Six of the seven Eitel factors weigh in favor of default judgment. In respect to the first
Eitel Factors
23
factor of prejudice, denying Plaintiff’s request for default judgment would be prejudicial because
24
Plaintiff would be left without a remedy as a result of Defendant’s refusal to litigate this action.
25
Considering the merits of Plaintiff’s substantive claims and the sufficiency of the complaint
26
27
28
1
In the Plaintiff’s Motion for Default Judgment, Plaintiff does not request relief in relation to the
alleged violation of Section 17200, therefore no relief will be granted under this statute.
3
Case No. 5:13-cv-05559-BLF
ORDER GRANTING PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT
1
together (factors two and three), Plaintiff’s substantive claims appear meritorious, and its
2
complaint is sufficiently pled. Plaintiff has stated the applicable laws pursuant to which the Court
3
may provide relief and alleged that Defendant violated 47 U.S.C. §§ 605 and 553 and California
4
Civil Code § 3336. The facts alleged concerning Defendant’s activities appear to support the
5
allegation that Defendant has violated one or more sections of the cited statutes.
6
As to the fifth and sixth Eitel factors, Defendant has failed to respond to this action despite
7
Plaintiff’s satisfaction of all notice requirements. (Summons Issued as to Marisol Lopez Pinon, at
8
1, Dec. 2, 2013, ECF 4; Proof of Service Summons and Compl., at 1, ECF 10) As such, there is
9
no dispute of material fact because Defendant has not responded (factor five). There is also
nothing in the record to indicate that Defendant’s default is a result of excusable neglect (factor
11
United States District Court
Northern District of California
10
six). Finally, although federal policy favors decisions on the merits, Rule 55(b)(2) permits entry
12
of default judgment in situations such as this where defendants refuse to litigate. J & J Sports
13
Productions, Inc. v. Deleon, No. 5:13–CV–02030, 2014 WL 121711, at *2 (N.D. Cal. Jan. 13,
14
2014). Therefore, this general policy is outweighed by the more specific considerations in this
15
case, and the seventh Eitel factor also weighs in favor of default.
16
With respect to the sum of money at stake in this action (fourth factor), Plaintiff’s request
17
for maximum statutory damages weighs against granting default judgment, as the amount
18
requested appears disproportionate to the harm alleged: a first time offender who did not charge an
19
entrance fee and did not show the broadcast to a packed house. However, a disproportionate
20
damages request is not enough on its own to bar default judgment, as it may be addressed by the
21
Court in deciding what damages should be awarded, assuming that a default judgment is otherwise
22
appropriate. Joe Hand Promotions, Inc. v. Mujadidi, No. C–11–5570, 2012 WL 3537036, at *3
23
(N.D. Cal. Aug. 14, 2012).
24
Accordingly, the Court GRANTS Plaintiff’s Motion for Default Judgment.
25
B.
26
Pursuant to 47 U.S.C. § 605(e)(3)(C)(i) Plaintiff has elected to request statutory damages.
27
28
Calculation of Damages
Plaintiff requests $10,000 in statutory damages under Section 605(e)(3)(C)(i)(II), and $100,000 in
4
Case No. 5:13-cv-05559-BLF
ORDER GRANTING PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT
1
enhanced damages under Section 605(e)(3)(C)(ii). (Mot., at 11, 14) Plaintiff also seeks $2,200 in
2
conversion damages under California Civil Code § 3336, the amount Defendant allegedly would
3
have been required to pay had Defendant licensed the Program from Plaintiff. (Mot., at 20)
4
i.
Statutory Damages
The Federal Communications Act, 47 U.S.C. §§ 605 et. seq., prohibits commercial
5
6
establishments from intercepting and broadcasting to its patrons satellite cable programming
7
except through authorized channels. Under Section 605(e)(3)(C)(i)(II), damages for a violation of
8
the Act are set at a minimum of $1,000 and a maximum of $10,000. Plaintiff requests the
9
statutory maximum for Defendant’s allegedly unauthorized interception of the Program. (Mot., at
10
United States District Court
Northern District of California
11
11)
Although Plaintiff has alleged that Defendant also violated 47 U.S.C. § 553, it does not
12
request damages under this section, which provides a lower statutory award. Therefore, only
13
damages pursuant to Section 605 will be assessed.
14
Plaintiff admits that it cannot determine the precise means that the Defendant used to
15
receive the Program unlawfully. (Mot., at 8) Plaintiff argues that it is “inherently reasonable” to
16
allow recovery under Section 605 under such circumstances. (Id.) Plaintiff further states the only
17
lawful way Defendant could have obtained the Program was by licensing it from J & J. (Mot., at
18
9) Since Defendant failed to do so, “Defendant must have undertaken specific wrongful actions to
19
intercept and/or receive the broadcast the encrypted telecast.” (Id.) Plaintiff asserts that due to
20
Defendant’s default, it should not be prejudiced and denied recovery of damages pursuant to
21
Section 605. (Mot., at 8) The Court agrees.
22
Although Plaintiff states that other districts have awarded substantial awards in comparable
23
cases, the Court finds the award of maximum statutory damages to be unjust. In the instant case,
24
Defendant is a first time offender, only had the Program displayed on one forty-inch television in a
25
room that accommodates forty people and did not charge a cover fee. (Gravelyn Decl., at 1)
26
There were at most eleven people in Martha’s Hair Styling in the two minutes Gravelyn spent in
27
the establishment although his affidavit does not state how many of those patrons were watching
28
5
Case No. 5:13-cv-05559-BLF
ORDER GRANTING PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT
1
the Program. (Id.) There are no allegations that Defendant either increased food or drink prices,
2
or even sold food or drink, during the exhibition of the Program or promoted itself by advertising
3
the Program.
4
Plaintiff’s arguments are limited in its memorandum because it spends less time analyzing
5
the facts and violations of the defendant in this case and more time trying to showcase the larger
6
awards granted in other districts. In light of the information presented and the discretion afforded
7
to the undersigned, the Court awards Plaintiff the statutory minimum of $1000 in damages under
8
Section 605(e)(3)(C)(i)(II).
9
10
ii.
Enhanced Damages
The Federal Communications Act also affords courts the discretion to award enhanced
United States District Court
Northern District of California
11
damages up to $100,000 upon finding that the violation “was committed willfully and for the
12
purposes of direct or indirect commercial advantage or private financial gain.” 47 U.S.C.
13
§ 605(e)(3)(C)(ii). The statute is conjunctive and therefore the Plaintiff must provide the Court
14
with sufficient evidence to support a finding that Defendant acted both willfully and for the
15
purpose of obtaining direct or indirect commercial advantage or private financial gain.
16
Plaintiff argues that it is “clearly established” that actions in cases such as these are
17
“willful.” (Mot., at 14) Plaintiff would like the Court to agree with other district courts that have
18
inferred willfulness by reasoning that the unlawful interception of a satellite signal necessarily
19
involves the defendant taking an affirmative step, thus exhibiting willful conduct. (Mot., at 14-15)
20
The Court agrees that Defendant’s alleged unlawful activity was the result of a deliberate act. See
21
J & J Sports Productions, Inc. v. Garcia, No. H–08–1675, 2009 WL 2567891, at *4 (S.D. Tex.
22
Aug. 14, 2009) (“The Defendant must have engaged in a deliberate act since ‘signals do not
23
descramble spontaneously, nor do television sets connect themselves to cable distribution
24
systems.’”).
25
The Court, however, is unpersuaded that Defendant has acted for the purposes of direct or
26
indirect commercial advantage. Plaintiff would like the Court to make this inference but provides
27
no evidence in support other than citing to Garden City Boxing Club, Inc. v. Batista for the
28
6
Case No. 5:13-cv-05559-BLF
ORDER GRANTING PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT
1
proposition that “[a] defendant who intercepts signals and broadcasts programming without
2
authorization in a place of business where certain events are shown to the public is generally held
3
to have acted willfully and for purposes of commercial advantage.” No. 05-CV-1044, 2007 WL
4
4276836, at *5 (E.D.N.Y. Nov. 30, 2007) (internal quotes omitted). What Plaintiff fails to
5
mention is that the Batista court also took into account that Batista had been sued for theft of cable
6
programming in at least one other action prior to the lawsuit. See Batista, No. 05-CV-1044, 2007
7
WL 4276836, at *6 (E.D.N.Y. Nov. 30, 2007). This supported the court’s inference that the
8
defendant “displayed the [Program] for commercial gain in order to attract customers or retain
9
customers who would purchase defendants’ products.” Id. In the instant case Defendant fails to
10
United States District Court
Northern District of California
11
provide the Court with such evidence that would permit such an inference.
Even if enhanced damages were warranted, the statutory maximum would not be justified,
12
despite Plaintiff’s argument that nominal damages have proven insufficient to combat piracy.
13
(Mot., at 19-20) The present claim does not appear to be sufficiently egregious to warrant
14
maximum enhanced damages. In the instant case, Defendant is a first time offender, only had the
15
Program displayed on one forty-inch television in a room that accommodates forty people and did
16
not charge a cover fee. (Gravelyn Decl., at 1) There were at most eleven people in Martha’s Hair
17
Styling in the two minutes Gravelyn spent in the establishment although his affidavit does not
18
state how many of those patrons were watching the Program. (Id.) There are no allegations that
19
Defendant either increased food or drink prices during the exhibition of the Program or promoted
20
itself by advertising the Program. It may very well be the case this action is enough of a deterrent
21
for Defendant. The Court will not consider awarding enhanced damages until Defendant becomes
22
a repeat offender or willfully and egregiously violates the Federal Communications Act.
23
24
25
For the foregoing reasons, the Court DENIES Plaintiff’s request for enhanced damages.
iii.
Conversion
Plaintiff requests $2,200 in damages for conversion under California Civil Code § 3336.
26
(Mot., at 20) The Ninth Circuit has held that a claim for conversion in California has three
27
elements: “ownership or right to possession of property, wrongful disposition of the property right
28
7
Case No. 5:13-cv-05559-BLF
ORDER GRANTING PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT
1
and damages.” G.S. Rassmussen & Associates, Inc. v. Kalitta Flying Service Inc., 958 F.2d 896,
2
906 (9th Cir. 1992). Plaintiff has established that it secured the domestic commercial exhibition
3
rights to broadcast the Program. (Compl. ¶ 14) Plaintiff has properly alleged that Defendant
4
unlawfully exhibited the Program on December 8, 2012 and that Plaintiff suffered damages from
5
being denied a license fee from Defendant. (Compl. ¶ 11) Therefore, the three elements are met.
California Civil Code § 3336 states that a plaintiff is entitled to the value of the property at
6
7
the time of conversion. Here, Plaintiff states that $2,200 is the amount Defendant would have
8
been required to pay Plaintiff had he lawfully licensed the Program. (Mot., at 20) The Court has
9
no reason to question this asserted value. Accordingly, the Court awards $2,200, the value of the
10
Program at the time of conversion.
Attorney’s Fees and Costs
United States District Court
Northern District of California
11
C.
12
The Court has reviewed the Plaintiff’s request for attorney’s fees and costs. Plaintiff has
13
requested $1,990.00 in attorney’s fees and $1,110.00 in costs, totaling $3,100.00. (Decl. of Pl.’s
14
Attorney’s Fees and Costs, at 7)
15
Pursuant to 47 U.S.C. § 605(e)(3)(B)(iii), the Court shall direct the recovery of full costs,
16
including awarding reasonable attorney’s fees to an aggrieved party who prevails. Here, Plaintiff
17
has prevailed due to Defendant’s default in the action. Attorney’s fees will be limited to the work
18
of attorneys and paralegals, therefore the $740 in fees requested for the administrative assistant is
19
denied. An award of fees for time spent by an administrative assistant is not consistent with the
20
practice in the Northern District of California. Such fees should be have been subsumed in firm
21
overhead. Nadarajah v. Holder, 569 F.3d 906, 921 (9th Cir. 2009). The Court finds the hourly
22
rates of $500 and $200 to be reasonable for an attorney and paralegal, respectively, of similar
23
experience in the Northern District of California. The 1.70 hours devoted to this matter by
24
Attorney Thomas P. Riley and the 2.0 hours by the paralegal also appear reasonable to the Court. 2
25
26
27
28
2
Plaintiff utilizes boilerplate filings for the various claims brought before the Court justifying the
reduction in fees and costs. See, e.g., J & J Sports Productions, Inc. v. Penalver, No. 13-cv-05551,
ECF Nos. 1, 17, 21, 24, 28 (N.D. Cal. 2013) (Complaint and motion papers).
8
Case No. 5:13-cv-05559-BLF
ORDER GRANTING PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT
1
The Court finds that costs should be limited to the complaint filing fee and the service of process
2
charges. Thus, the request for investigative expenses of $625 is denied. Accordingly, the Court
3
awards $1,735.00 in reasonable attorney’s fees and costs.
4
IV.
5
CONCLUSION
For the reasons stated above, Plaintiff’s motion for default judgment is GRANTED.
6
Plaintiff shall recover $1,000 in statutory damages, $2,200 in damages for conversion, and
7
$1,735.00 in reasonable attorney’s fees and costs. Plaintiff’s request for enhanced damages is
8
DENIED.
9
10
United States District Court
Northern District of California
11
12
13
IT IS SO ORDERED.
Dated: July 18, 2014
______________________________________
BETH LABSON FREEMAN
United States District Judge
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
9
Case No. 5:13-cv-05559-BLF
ORDER GRANTING PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?