ViaView, Inc. v. Chanson et al
Filing
24
ORDER Granting 17 Motion for Order to Show Cause. Defendants Eric S. Chanson, Kevin C. Bollaert, Roy E. Chanson, Amy L. Chanson, and Blue Mist Media are found in contempt of Court. IT IS FURTHER ORDERED that the Clerk of Court shall enter def ault against Defendants Eric S. Chanson, Kevin C. Bollaert, Roy E. Chanson, Amy L. Chanson, and Blue Mist Media LLC. Plaintiff is ORDERED to file a motion for default judgment within 14 days of this Order's entry. IT IS FURTHER ORDERED that Pla intiff is entitled to an award of reasonable attorneys fees and costs against Defendants Eric S. Chanson, Kevin C. Bollaert, Roy E. Chanson, Amy L. Chanson, and Blue Mist Media LLC, and shall supply affidavits and supporting documentation in support of its motion for default judgment. Signed by Judge Gloria M. Navarro on 4/4/13. (Copies have been distributed pursuant to the NEF - EDS)
1
2
3
4
5
6
7
Marc J. Randazza (Nevada Bar No. 12265)
Ronald D. Green (Nevada Bar No. 7360)
J. Malcolm DeVoy IV (Nevada Bar No. 11950)
RANDAZZA LEGAL GROUP
6525 W. Warm Springs Road, Suite 100
Las Vegas, NV 89118
Telephone: 888-667-1113
Facsimile: 305-437-7662
ecf@randazza.com
Attorneys for Plaintiffs,
ViaView, Inc.
8
UNITED STATES DISTRICT COURT
9
DISTRICT OF NEVADA
10
11
VIAVIEW, INC.,
Plaintiff,
12
13
14
15
16
17
18
Case No. 2:12-cv-01657
[PROPOSED] ORDER
ORDER
vs.
ERIC S. CHANSON; KEVIN C. BOLLAERT;
CODY ALVIAR; ROY E. CHANSON; AMY L.
CHANSON; and BLUE MIST MEDIA, LLC,
Defendants.
[PROPOSED] ORDER
Pending before the Court is the failure of Defendants Eric S. Chanson, Kevin C. Bollaert,
19
Roy E. Chanson, Amy L. Chanson, and Blue Mist Media LLC (the “Defendants”), to file any
20
briefing demonstrating that they should not be held in contempt for their refusal to abide by the
21
Temporary Restraining Order (ECF 10) and Preliminary Injunction (ECF 15) previously entered
22
23
24
by this Court. Plaintiff ViaView, Incorporated filed a Motion for Order to Show Cause (ECF
17), which this Court granted (ECF 18) and scheduled a hearing upon for April 11, 2013. (ECF
25
20) Defendants’ briefing demonstrating why they should not be held in contempt was due by
26
April 2, 2013. (ECF 20) As ordered by the Court, Plaintiff served the order containing this
27
schedule upon Defendants (ECF 21). However, Defendants did not file anything with the Court.
28
Randazza
Legal Group
6525 W. Warm Springs
Road
Suite 100
Las Vegas, NV 89118
(888) 667-1113
-1-
1
I.
2
The Court already has issued a Temporary Restraining Order and Preliminary Injunction
3
prohibiting Defendants from using the ISANYONEUP trademark—and variations thereof— or
4
5
6
Background.
registering, trafficking in, or using domain names containing the mark or variations thereof as
part of their “involuntary pornography” scheme (ECF 10, 15). Plaintiff has demonstrated that
7
Defendants have refused to comply with this Court’s orders. Instead, Defendants continue to
8
maintain and use domain names that incorporate the ISANYONEUP mark and redirect to
9
Defendants’ involuntary pornography websites.
10
Moreover, they continued to identify their
involuntary pornography websites at “The New Is Anyone Up” after the entry of the Temporary
11
12
Restraining Order and Preliminary Injunction in this case. Because Defendants ignored the
13
injunctions issued against them, the Court finds Defendants in contempt of Court and grants
14
Plaintiff its attorneys’ fees and costs and Defendants’ profits. Moreover, the Court finds that
15
terminating sanctions against Defendants Eric S. Chanson, Kevin C. Bollaert, Roy E. Chanson,
16
17
18
Amy L. Chanson, and Blue Mist Media LLC are appropriate, and orders default to be entered
against those Defendants.1
19
II.
20
In order to hold Defendants in civil contempt, Plaintiff must show by clear and
21
22
23
Standard For Finding Contempt.
convincing evidence that Defendants “violated a specific and definite order of the court.” FTC v.
Affordable Media, LLC, 179 F.3d 1228, 1239 (9th Cir. 1999). A finding of civil contempt allows
24
the Court to issue remedial sanctions against defendants. Perry v. O’Donnell, 759 F.2d 702, 704
25
(9th Cir. 1985).
26
justify an award of fees and expenses as a remedial sanction. Id.
27
28
Randazza
Legal Group
6525 W. Warm Springs
Road
Suite 100
Las Vegas, NV 89118
(888) 667-1113
1
Courts presiding over civil actions need not find that contempt is willful to
Based on Plaintiff’s notice to the Court, Cody Alviar is excluded from this group of
Defendants.
-2-
1
Plaintiff has shown that despite the Defendants’ knowledge of the Temporary Restraining
2
Order and Preliminary Injunction entered against them, Defendants did not comply with these
3
orders.
4
5
6
Instead, Defendants continued to use Plaintiff’s ISANYONEUP mark after the Court
specifically and definitively ordered them to halt. Although Defendants’ actions were likely
willful, the Court need not make that determination in order to hold Defendants in contempt and
7
issue sanctions.
8
violated the Court’s orders, the Court finds Defendants should be sanctioned, Plaintiff awarded
9
its reasonable attorneys’ fees and costs, and terminating sanctions be entered against the
10
Based on Plaintiff’s clear and convincing showing that Defendants have
Defendants.
11
12
III.
Awarding Plaintiff’s Reasonable Attorneys’ Fees And Costs.
13
The evidence before the Court indicates that Defendants had knowledge of the Court’s
14
Temporary Restraining Order and Preliminary Injunction, but chose to disregard both. Despite
15
the Court issuing an Order to Show Cause to Defendants, they have failed to respond.
16
17
18
Disobedient conduct such as the Defendants’, which has not been shown to be “outside the
control of the litigant, is sufficient to demonstrate willfulness, bad faith or fault[.]” Stars’ Desert
19
Inn Hotel & Country Club Inc. v. Hwang, 105 F.3d 521, 525 (9th Cir. 1997). Where a party
20
willfully disobeys a court order, the Court may impose sanctions upon him or her. Chambers v.
21
22
23
NASCO, Inc., 501 U.S. 32, 45 (1991); see also Rockstar, Inc. v. Original Good Brand Corp.,
Case No. 2:09-cv-1499, 2010 WL 3724244 at *1 (D. Nev. Sept. 15, 2010). These sanctions may
24
include an award of reasonable attorneys’ fees and costs. Brincko v. Rio Properties, Inc., 278
25
F.R.D. 576, 581, 586 (D. Nev. 2011).
26
27
A mere admonition by the Court is unlikely to effect a change of Defendants’ behaviors,
and more drastic remedies are required. The Court finds that Plaintiff is entitled to and shall
28
Randazza
Legal Group
6525 W. Warm Springs
Road
Suite 100
Las Vegas, NV 89118
(888) 667-1113
-3-
1
receive an award of reasonable attorneys’ fees and costs in bringing their motion for an order to
2
show cause and subsequent actions to obtain sanctions upon Defendants. Plaintiff is instructed
3
to file affidavits and other evidence concerning the reasonableness of its fees with their motion
4
for default judgment, as discussed below.
5
IV.
6
Terminating Sanctions And The Entry of Defendants’ Default.
7
Where a party fails to abide by a Court’s orders, default may be used as a sanction against
8
the non-compliant party. Rockstar Inc., 2010 WL 3724244 at *1-2. Courts have the inherent
9
power to enter a default judgment “to ensure the orderly administration of justice and the
10
integrity of their orders.” Phoceene Sous-Marine, S.A. v. U.S. Phosmarine, Inc., 682 F.2d 802,
11
12
806 (9th Cir. 1982); see also Wyle v. R.J. Reynolds Industries, Inc., 709 F.2d 585, 589 (9th Cir.
13
1983) (upholding a terminating sanction “when a party has willfully deceived the court and
14
engaged in conduct utterly inconsistent with the orderly administration of justice.”)2 Where the
15
Court anticipates continued misconduct by the offending party, it may reject lesser sanctions.
16
17
Anheuser-Busch, Inc., 69 F.3d at 332.
The Court must weigh five factors in determining the appropriateness of allowing
18
19
terminating sanctions and entering default against the Defendants: (1) the public's interest in
20
expeditious resolution of litigation; (2) the court's need to manage its docket; (3) the risk of
21
22
23
24
25
26
27
28
Randazza
Legal Group
6525 W. Warm Springs
Road
Suite 100
Las Vegas, NV 89118
(888) 667-1113
prejudice to the [opposing party]; (4) the public policy favoring disposition of cases on their
merits; and (5) the availability of less drastic sanctions. Computer Task Group, Inc. v. Brotby,
2
It is also worth noting that while many cases entering terminating sanctions arise from
discovery abuses under Fed. R. Civ. P 37, terminating sanctions entered under that Rule and the
Court’s inherent powers are all but interchangeable. Adriana Int’l Corp. v. Kunz, 913 F.2d 1406,
1412 n.4 (9th Cir. 1990). Under the precedent of the United States Court of Appeals for the
Ninth Circuit, cases involving both dismissals based on district courts’ inherent authority and
Rule 37 are treated interchangeably; similarly, cases involving the dismissal of a plaintiff’s
complaint are treated the same as those involving the striking of a defendant’s answer. Id.
-4-
1
364 F.3d 1112, 1115 (9th Cir. 2004); Rockstar Inc., 2010 WL 3724244 at *2. When a court order
2
has been violated, the first and second factors weigh in favor of sanctions, while the fourth
3
weighs against them. Adriana, 913 F.2d at 1412. The third and fifth factors are therefore
4
5
6
determinative. Id. However, terminating sanctions are particularly appropriate where a party has
“engaged deliberately in deceptive practices that undermine the integrity of judicial
7
proceedings.” Anheuser-Busch, Inc. v. Natural Beverage Distributors, 69 F.3d 337, 348 (9th Cir.
8
1995). Such conduct can be seen in the Defendants’ actions.
9
10
With respect to the third factor, Plaintiff is prejudiced by Defendants’ ongoing violation
of its trademark rights. While denying Plaintiff the right to prosecute its case and take discovery,
11
12
Defendants have simultaneously subverted the role and purpose of the Court with their conduct.
13
Plaintiff expended resources to obtain a Temporary Restraining Order and Preliminary
14
Injunction to protect its rights, yet Defendants have refused to comply with these orders and
15
further damaged the very rights Plaintiff brought suit to protect. An entry of default and
16
17
18
progression to default judgment will aid Plaintiff’s protection of its rights.
Finally, the Court must consider less drastic alternatives to terminating sanctions against
19
Defendants. Rockstar Inc., 2010 WL 3724244 at *2-3. As directed by the Court, Plaintiff served
20
Defendants with the Court’s Temporary Restraining Order and Preliminary Injunction. Despite
21
22
23
having notice of these orders, Defendants have engaged in conduct inconsistent their plain
language.
Their conduct is contrary to the orderly administration of justice.
In light of
24
Defendants’ refusal to participate in this litigation despite having been provided numerous
25
notices as to its developments, the Court can only conclude that Defendants have no intention of
26
complying with its orders, and that less drastic sanctions, such as sanctions payable to the Court
27
28
Randazza
Legal Group
6525 W. Warm Springs
Road
Suite 100
Las Vegas, NV 89118
(888) 667-1113
-5-
1
or public admonition, will not have the desired effect to ensure the integrity of the Court’s
2
orders.
3
4
5
6
Even if alternate, less-severe sanctions had not been considered, there is ample basis for
default in the record before the Court. Plaintiffs have been served with the Complaint and
Temporary Restraining Order (ECF 14), served with the Preliminary Injunction, and served with
7
this Court’s Order to Show Cause alerting them to this hearing and their opportunity to respond.
8
If any less drastic action or notice by the Court could enervate Defendants to participate in this
9
litigation, it would have done so by now. Therefore, the weight of the five-factor analysis
10
required by Adriana weighs in Plaintiff’s favor, and entry of default judgment against
11
12
Defendants is appropriate.
13
V.
14
IT IS HEREBY ORDERED that Defendants Eric S. Chanson, Kevin C. Bollaert, Roy E
15
Chanson, Amy L. Chanson, and Blue Mist Media are found in contempt of Court, and shall be
16
17
18
Conclusion
held in contempt until such time as they provide evidence to the Court that they have purged this
contempt by discontinuing their violation of Plaintiff’s trademark rights.
19
IT IS FURTHER ORDERED that the clerk shall enter default against Defendants Eric
20
S. Chanson, Kevin C. Bollaert, Roy E. Chanson, Amy L. Chanson, and Blue Mist Media LLC.
21
22
23
14
Plaintiff is ORDERED to file a motion for default judgment within ___ days of this Order’s
entry.
24
IT IS FURTHER ORDERED that Plaintiff is entitled to an award of reasonable
25
attorneys’ fees and costs against Defendants Eric S. Chanson, Kevin C. Bollaert, Roy E.
26
Chanson, Amy L. Chanson, and Blue Mist Media LLC, and shall supply affidavits and
27
28
Randazza
Legal Group
6525 W. Warm Springs
Road
Suite 100
Las Vegas, NV 89118
(888) 667-1113
supporting documentation in support of its motion for default judgment
DATED this 4th day of April, 2013.
-6-
-6-
________________________________
Gloria M. Navarro
United States District Judge
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?