Metro Media Entertainment, LLC v. Does 1 - 47
Filing
110
MEMORANDUM OPINION. Signed by Chief Judge Deborah K. Chasanow on 8/27/14. (sat, Chambers)
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND
:
METRO MEDIA ENTERTAINMENT, LLC
:
v.
:
Civil Action No. DKC 12-0347
:
RICHARD STEINRUCK
:
MEMORANDUM OPINION
Presently
pending
and
ready
for
resolution
in
this
copyright infringement case are a motion for summary judgment
filed by Defendant Richard Steinruck (ECF No. 100) and a motion
for
voluntary
dismissal
filed
Entertainment, LLC (ECF No. 102).
by
Plaintiff
Metro
Media
Also pending is a motion for
a hearing filed by Defendant Richard Steinruck (ECF No. 107).
The issues have been fully briefed, and the court now rules, no
hearing being deemed necessary.
Plaintiff’s
Local Rule 105.6.
motion
to
dismiss
For the
following
reasons,
will
be
granted.
Defendant’s motions for summary judgment and for a
hearing will be denied as moot.
I.
Background
Some familiarity with the underlying facts of this case is
presumed.
(See ECF Nos. 67, 92, 99).
Plaintiff Metro Media
Entertainment, LLC owns the copyright to a pornographic film
titled My Baby Got Back! #44.
Plaintiff commenced this action
on February 6, 2012, by filing a complaint against forty-seven
Doe defendants alleged to have infringed Plaintiff’s copyright
in this pornographic film by downloading and/or uploading the
video over the Internet via a file-sharing protocol known as
(ECF No. 1).1
BitTorrent.
An order severed the forty-seven
defendants named in the complaint and dismissed all except Doe
1.
(ECF
No.
17).
The
order
further
directed
that
“all
documents filed in this action that contain Doe 1’s identifying
information shall be filed under seal.”
(Id. at 2).
Days
later, Plaintiff’s counsel transmitted a settlement offer to the
sole remaining defendant, stating, inter alia, that it will name
Doe
1
as
Plaintiff’s
a
defendant
copyright
(i.e.,
in
the
as
an
alleged
pornographic
infringer
film)
unless
of
a
proposed “settlement offer” of $3,5000.00 was promptly remitted.
(ECF No. 23-3, at 2).
Doe
1,
by
counsel,
counterclaim
in
which
he
responded
publicly
Defendant Richard Steinruck.
by
filing
revealed
(ECF No. 23).
an
his
answer
and
identity
as
The counterclaim
raised a single count of abuse of process under Maryland law.
Plaintiff moved to dismiss the counterclaim (ECF No. 29), which
1
2012.
Plaintiff later filed an amended complaint on June 5,
(ECF No. 21).
2
was granted (ECF No. 67).2
July
30,
2012.
(ECF
A scheduling order was entered on
No.
28).
Shortly
after
discovery
commenced, the parties became embroiled in a number of discovery
disputes and the case was referred to Magistrate Judge Charles
B. Day for resolution of all discovery and related scheduling
matters.
Among other things, the parties were unable to agree
on the terms of a protective order and as to the circumstances
in which Defendant’s computers would be inspected by Plaintiff’s
expert
witness.
After
many
months
of
delay,
the
issues
regarding the protective order were resolved (after an objection
to Judge Day’s ruling was overruled), but the parties apparently
never
submitted
signature.
a
final
Similarly,
protective
Judge
Day
order
ruled
to
that
Judge
Day
for
Plaintiff
was
entitled to have its expert perform an inspection at his or her
chosen location, and that Defendant was entitled to be present
during
the
inspection.
Despite
that
ruling
in
Plaintiff’s request, the inspection never occurred.
favor
of
(See ECF
No. 99, at 2-3).
On
March
15,
2013,
approximately
six
months
after
expiration of the deadline for amendment of pleadings or joinder
of additional parties, Plaintiff moved for leave to amend its
complaint in order to add Patrick Steinruck, Defendant’s son, as
2
Plaintiff also sought sanctions related to the filing of a
frivolous counterclaim, which was denied.
3
an additional defendant in this action.
(ECF No. 85).
That
motion was denied because Plaintiff failed to show good cause
for late-filing of the motion.3
(ECF No. 93).
On October 25, 2013, Defendant moved for summary judgment.
(ECF No. 100).
Plaintiff opposed the motion on November 12,
2013, and on the same date, filed its own motion to dismiss all
of
its
claims
voluntarily
(ECF Nos. 101 & 102).
pursuant
to
Fed.R.Civ.P.
41(a)(2).
Defendant filed a reply brief in support
of his motion for summary judgment (ECF No. 104) and opposed
Plaintiff’s
motion
for
voluntary
dismissal
(ECF
No.
105).
Defendant later moved for a hearing on his motion for summary
judgment (ECF No. 107).
II.
Analysis
A.
Plaintiff’s Motion for Voluntary Dismissal
Plaintiff
moves
for
voluntary
dismissal
with
prejudice
pursuant to Fed.R.Civ.P. 41(a)(2), which allows for dismissal by
court order after the opposing party has served either an answer
or motion for summary judgment and without the consent of all
parties who have appeared.
The decision to grant or deny a
3
Plaintiff commenced a separate action against Patrick
Steinruck.
See Civil Action No. DKC 13-1703.
Plaintiff later
moved to dismiss voluntarily pursuant to Fed.R.Civ.P. 41(a)(2);
Patrick Steinruck did not oppose the motion.
The undersigned
issued an order on January 31, 2014, granting Plaintiff’s motion
for voluntary dismissal with prejudice, with each party to bear
its own attorneys’ fees and costs.
(Civil Action No. DKC 131703, ECF No. 17).
4
voluntary dismissal under Rule 41(a)(2) is a matter of discretion
to
be
guided
by
certain
factors,
prejudice to the nonmoving party.
including
the
potential
Davis v. USX Corp., 819 F.2d
1270, 1273 (4th Cir. 1987).
Where,
as
here,
a
plaintiff’s
Rule
41(a)(2)
motion
“specifically request[s] dismissal with prejudice, it has been
held that the district court must grant that request.”
9 Charles
A. Wright & Arthur R. Miller § 2367 (3d ed. 2008) (emphasis
added).
Indeed, that Plaintiff seeks “dismissal with prejudice
is of paramount importance,” F.D.I.C. v. Becker, 166 F.R.D. 14,
15 (D.Md. 1996), because a voluntary dismissal with prejudice
under Rule 41(a)(2) operates as “a complete adjudication on the
merits of the dismissed claim,” Harrison v. Edison Bros. Apparel
Stores Inc., 924 F.2d 530, 534 (4th Cir. 1991).
Absent a specific
order by the court, dismissal with prejudice “is subject to the
usual rules of res judicata.”
9 Wright & Miller § 2367; see also
In re Tomlin, 105 F.3d 933, 936-37 (4th Cir. 1997) (“generally,
[d]ismissal
of
an
action
with
prejudice
is
a
complete
adjudication of the issues presented by the pleadings and is a
bar to a further action between the parties.” (internal quotation
marks omitted)); McLean v. United States, 566 F.3d 391, 407 (4th
Cir. 2009) (same).
Moreover, “[n]ormally, a plaintiff may not
appeal the dismissal of his suit with prejudice, which is granted
on his own motion.”
Distaff, Inc. v. Springfield Contracting
5
Corp., 984 F.2d 108, 110 (4th Cir. 1993) (citing United States v.
Proctor & Gamble Co., 356 U.S. 677, 680 (1958)).
In its motion for voluntary dismissal, Plaintiff represents
that
although
Defendant’s
it
“believes
copying
sufficient
and/or
allowing
evidence
someone
exists
(for
of
example,
Defendant’s son Patrick) to use Defendant’s Internet account to
make
an
willing
unauthorized
to
accept
copy
of
dismissal
Plaintiff’s
with
movie,
prejudice,
bearing its own costs and attorney fees.”
Plaintiff
with
each
is
party
(ECF No. 102, at 1).
According to Plaintiff, the evidence shows that a user located at
Richard Steinruck’s IP address downloaded a copy of the film in
question.
Despite Plaintiff’s belief “that a jury [would] find
that Defendant is liable for copyright infringement, [it] has
determined that the cost of going forward may not justify the
damages
that
might
recoverable.”
be
awarded,
(Id. at 4).
or
that
any
damage
would
be
Plaintiff also believes that evidence
may become spoliated, jeopardizing further proceedings.
(Id. at
4-5).
Defendant has opposed the motion for voluntary dismissal,
taking a much different view of the facts.
that
Plaintiff
evidence
voluntary
judgment
initiated
against
Defendant
dismissal
against
this
in
it.
an
action
himself”
effort
(ECF
No.
6
to
105,
Defendant believes
“without
a
and
now
has
avoid
at
the
1).
scintilla
moved
imposition
of
for
of
Specifically,
Defendant asserts that “[e]ven if the Court assumes that there
was a downloading of Plaintiff’s copyrighted pornographic film by
someone
using
Defendant’s
router,
there
has
never
been
the
slightest evidence that Defendant did such downloading, was aware
that anyone was downloading using his router, or has any idea who
did the downloading even now.”
(Id.).
Defendant asserts that
“[a]nyone within 400 feet of the Steinruck residence could have
been using the router without Mr. Steinruck’s knowledge.”
(Id.
at 4).
Although the strength of Plaintiff’s evidence to support
copyright infringement is debatable, there is no indication that
Plaintiff acted improperly or in bad faith by initiating and
pursuing this suit against Richard Steinruck.
and
served
a
complaint
against
Richard
Plaintiff filed
Steinruck
because
it
determined that a copy of one of its films had been downloaded by
a computer located at the IP address 108.18.217.126, and that
this IP address belonged to Richard Steinruck.
Appended
to
Plaintiff’s
the
amended
counsel
complaint
reciting
the
is
details
a
of
(ECF No. 21 ¶ 5).
certification
the
from
investigation
that was undertaken in connection with the alleged infringement.
(ECF No. 21-1).
Plaintiff did not have conclusive proof that
Richard Steinruck did the downloading or was aware that anyone
was downloading the pornographic film using his router, but as
Judge Paul W. Grimm recently stated in a copyright infringement
7
case
with
facts
virtually
identical
to
the
facts
here,
“the
Federal Rules of Civil Procedure do not hold pleadings to such an
impossibly high standard; plausibility – not conclusiveness – is
the standard.”
Patrick Collins, Inc. v. Osburn, No. PWG-12-1294,
2014 WL 1682010, at *3-4 (D.Md. Apr. 28, 2014) (“it takes no
great imagination to see how evidence that a file was downloaded
by a certain IP address could support a plausible claim that the
file was downloaded by the subscriber at that IP address.”).4
Considering that dismissal with prejudice of Plaintiff’s
amended
complaint
insulates
Defendant
from
further
litigation
arising out of the dismissed claims, any injustice that Defendant
might otherwise suffer “is significantly lessened.”
F.R.D. at 15.
plaintiff’s
Becker, 166
Because district courts ordinarily “must” grant a
request
for
voluntary
dismissal
with
Plaintiff’s Rule 41(a)(2) motion will be granted.
prejudice,
See, e.g., C-
Tech Corp. v. Aversion Technologies, Civ. Action No. DKC 11-0983,
2012 WL 3962508, at *2-3 (D.Md. Sept. 7, 2012) (granting motion
for voluntary dismissal with prejudice).
The question remains, however, as to whether any conditions
should be attached to dismissal of the amended complaint.
crux
of
Defendant’s
opposition
is
his
view
that
The
allowing
Plaintiff to walk away without compensating him for attorney’s
4
The same attorneys represent the parties in both that case
and this litigation.
8
fees and costs “would be the height of unfair disposition by the
Court.”
(ECF No. 105, at 2-3).
When a dismissal is without
prejudice, the court may impose conditions, such as the movant’s
payment of the opposing party’s fees and costs.
41(a)(2).
See Fed.R.Civ.P.
In contrast, where a motion for voluntary dismissal is
granted with prejudice, such as here, an award of attorneys’ fees
is not appropriate because there is no risk that the defendant
can “be called upon again to defend” and thus no risk of “any
duplication of expense.”
(D.Md. 1963).
general
Courts have recognized two exceptions to this
principle:
circumstances”
Lawrence v. Fuld, 32 F.R.D. 329, 331
and
(1)
where
(2)
where
authority for such an award.”
quotation
marks
and
the
case
“there
is
involves
“exceptional
independent
statutory
9 Wright & Miller § 2366 (internal
citations
omitted).
For
instance,
circumstance would be exceptional if the “‘plaintiff’s suit was .
. . unnecessary, groundless, vexatious and oppressive.’”
Nat’l
Satellite Sports, Inc. v. Comcast Satellite Communications, Inc.,
No. CIV. H-00-261, 2000 WL 1717304, at *2 (D.Md. 2000) (quoting
Lawrence, 32 F.R.D. at 332-33).
Defendant
maintains
that
he
has
expended
large
sums
of
money for attorney fees, travel expenses for depositions, and for
preparing
with
pleadings,
Plaintiff’s
motions,
case.
The
and
other
record
filings
reflects
in
that
connection
aside
from
engaging in several discovery disputes seeking a protective order
9
and to inspect Defendant’s computers (which inspection Plaintiff
never actually undertook), Plaintiff was relatively inactive in
this
case.
Plaintiff
report,
By
and
to
contrast,
hired
rebut
his
Defendant
own
allegations
expert,
of
counterclaimed
who
prepared
copyright
an
against
expert
infringement.
In
Osburn, 2014 WL 1682010, at *5, plaintiff also asserted claims of
copyright infringement and then offered to dismiss voluntarily
the
action
expenses.
with
prejudice,
with
each
party
to
bear
its
own
Much like here, defendant in Osburn, 2014 WL 1682010,
at *5, vociferously objected to voluntary dismissal, arguing that
he
should
defend
a
be
awarded
baseless
attorney’s
lawsuit.
fees
Judge
and
Grimm
costs
in
rejected
having
defendant’s
arguments:
It is not apparent from the record that
[defendant] was required to respond to
[plaintiff’s]
relative
inactivity
by
conducting multiple depositions 2,500 miles
apart, retaining an expert and commissioning
a full expert report, and drafting “multiple
interrogatories and requests for production
of
documents,”
[]
and
more
economical
alternatives, such as telephone depositions,
were available.
Although it appears that
Osburn
was
responding
forcefully
to
allegations that he considered personally
offensive, [defendant’s] choice to pursue a
particularly
aggressive
defense
strategy
does
not
constitute
exceptional
circumstances
sufficient
to
warrant
an
attorney’s fees award. . . . And while the
Copyright
Act
grants
me
discretion
to
apportion costs or attorney’s fees under
certain circumstances, 17 U.S.C. § 505, I
decline to exercise that discretion here.
10
to
Dismissal
will
not
be
conditioned
on
[plaintiff’s] payment of attorney’s fees or
costs.
Osburn, 2014 WL 1682010, at *5 (emphasis added).
applies here.
The same logic
Moreover, Plaintiff offered to settle the matter
with a complete dismissal on August 29, 2013, months before
Defendant moved for summary judgment.
opposition
contends
to
the
that
unjustified
motion
the
for
terms
release
voluntary
of
of
(ECF No. 102-1).
the
dismissal,
settlement
Plaintiff
Defendant
included
“an
a
restrictive
(ECF No. 105, at 6).
confidentiality provision.”
and
In his
But as Judge
Grimm noted, a confidentiality provision, a mutual release, and
a provision for each party to bears its own fees and costs “are
not unusual [clauses] in settlement agreements.”
Osburn, 2014
WL 1682010, at *4.
Defendant further argues that “[i]t would be appropriate
for
the
record
to
show
that
the
case
was
disposed
of
by
[s]ummary [j]udgment, as that would inform other Courts of the
unsufficiency of the suit here more than a Rule 41 dismissal
would show.”
(Id. at 2).
But as explained in Weathers v.
Consolidated Stores Corp., No. Civ.A. DKC 2002-3274, 2004 WL
35769,
at
*2
n.2
(D.Md.
Jan.
7,
2004),
“[d]espite
filing
a
summary judgment motion, [d]efendant’s interests are well-served
by
a
dismissal
with
prejudice
because
‘[a]n
adjudication
in
favor of the defendants, by court or jury, can rise no higher
11
than this.’”
(citing Harrison v. Edison Bros. Apparel Stores
Inc., 924 F.2d at 530, 534 (4th Cir. 1991)).
Accordingly,
Plaintiff’s
Rule
41(a)(2)
motion
will
be
granted, and this case will be dismissed with prejudice.
B.
Defendant’s Motion for Summary Judgment
Plaintiff’s
Rule
41(a)(2)
motion
will
be
granted,
thus
Defendant’s motion for summary judgment will be denied as moot.
III. Conclusion
For
dismissal
the
foregoing
filed
by
reasons,
Plaintiff
will
the
be
motion
granted.
for
voluntary
Defendant’s
motions for summary judgment and for a hearing will be denied as
moot.
A separate order will follow.
/s/
DEBORAH K. CHASANOW
United States District Judge
12
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