AT&T Broadband v. Tech Communications, Inc.

381 F.3d 1309, 33 Communications Reg. (P&F) 854, 2004 U.S. App. LEXIS 18300, 2004 WL 1921177
CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 30, 2004
Docket03-11235
StatusPublished
Cited by35 cases

This text of 381 F.3d 1309 (AT&T Broadband v. Tech Communications, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AT&T Broadband v. Tech Communications, Inc., 381 F.3d 1309, 33 Communications Reg. (P&F) 854, 2004 U.S. App. LEXIS 18300, 2004 WL 1921177 (11th Cir. 2004).

Opinion

BIRCH, Circuit Judge:

This appeal presents an issue of first impression in this circuit: whether the Cable Communications Policy Act (“CCPA”), 47 U.S.C. § 553(c)(2)(A) (2001), empowers a district court to issue an ex 'parte order authorizing a freeze of assets or a search and seizure of property belonging to an alleged violator of the Act. After discovering that defendants-appellants 1 Richard Marmer and his company, Tech Communications, Inc. (collectively, “Marmer”), were selling “pirate” cable descramblers in violation of § 553(a)(1), plaintiff-appellee AT&T Broadband (“AT&T”) filed suit against Marmer and sought an ex parte order freezing Marmer’s assets and allowing AT&T to seize property related to its claims. The district court granted the order and we AFFIRM.

I. BACKGROUND

AT&T contends that Marmer is involved in the sale of illegal cable descrambling devices that allow buyers to receive AT&T’s cable television programming for free. AT&T filed suit- 2 against Marmer alleging violation of § 553(a)(1) of the CCPA, and, on the same day, filed an ex parte motion for, inter alia, an asset freeze and seizure of Marmer’s business records. 3 See Rl-1, 5. As evidence of Marmer’s illegal activity, AT&T submitted the affidavits of two AT&T security personnel: (1) Craig Frappier, AT&T’s Manager of Security and (2) Jeffrey Marin, an AT&T Security Investigator.

Frappier’s affidavit detailed AT&T’s lost revenue due to the sale of illegal cable descramblers. Specifically, Frappier explained that AT&T provides its subscribers with a “decoder” that unscrambles its television signals so that AT&T cable subscribers can receive AT&T’s television signals. Rl-11 at ¶ 8. The decoders are programmed to authorize viewing of purchased services only. “Pirate” decoders, or descramblers, allow the possessor to receive all of AT&T’s scrambled programming without payment. Id. ¶ 11.

Marin’s affidavit indicated that Marmer’s website, “cabletvdescramblers.net,” offered for sale several illegal cable de-scrambling devices, including “The Matrix” and the “Coolbox Avenger X.” Rl-10 at *1312 ¶ 2. Marin, posing as an ordinary customer, ordered “The Matrix.” The package arrived, carrying a return address belonging to a Mail Boxes, Etc. store. Marin connected “The Matrix” and found that it was capable of receiving all of AT&T’s scrambled premium and pay-per-view services in a certain viewing area.

After searching through public records, Marin and Frappier discovered Marmer’s home address — 21407 Pagosa Court — and began observing activity outside his home. Marin followed Marmer from the Pagosa Court address to a warehouse-type facility at 960 South Deerfield Avenue. Marin observed Marmer “carrying a black bag consistent with the size and shape of [a] laptop computer.” Id. ¶ 11. He also observed Marmer drive to the Mail Boxes, Etc. location listed as the return address for “The Matrix,” where Marmer retrieved packages “consistent with the size and shape of the illegal Matrix descrambler that [Marin] purchased from [Marmer].” Id. ¶ 12. Marmer then traveled from the Mail Boxes, Etc. to the Deerfield Avenue warehouse, where he unloaded the packages and then loaded additional packages retrieved from the warehouse. After Marmer departed, Marin searched a garbage dumpster near the warehouse and found several items that he concluded were “consistent with the operation of an illegal descrambler sales company.” Id. ¶ 14. This suit and the orders at issue followed.

The district court initially denied AT&T’s ex parte request for an asset freeze pending a showing of the specific assets to be frozen. The district court also initially denied AT&T’s ex parte request to seize certain of Marmer’s property because AT&T “failed to show a likelihood that evidence will be destroyed or unavailable if such an order is not granted.” 4 Rl-13 at 4. However, the district court granted AT&T’s request for an injunction and enjoined Marmer from:

the sale, transfer, advertisement ..., movement and/or offer for sale, modification, manufacture, storage and1 distribution of cable television decoding devices and related equipment and/or the rendering of any assistance whatsoever in the sale, transfer, advertisement, movement, modification, manufacture, storage or distribution of such equipment ... [and] from destroying, altering, removing or secreting any of [Marmer’s] books and records ... which contain information whatsoever concerning the business or finances of [Marmer] or otherwise reflect transactions of any kind involving Decoding Devices....

Id. at 2-3.

Two days later, on 15 November 2002, AT&T filed an emergency motion to supplement the record and modify the district court’s initial denial of an asset freeze and seizure of property. AT&T submitted a supplemental affidavit from Frappier, and the affidavit of Daniel Lefkowitz, an attorney who represented another cable company in an identical, prior litigation. Frappier’s supplemental affidavit stated that Marmer was cutting off suppliers’ shipping labels and shredding documents. Rl-14, Ex. B at ¶¶ 6, 9, 10, 14. “[B]ased on [his] extensive experience,” Frappier stated his opinion that, “absent a seizure, [Marmer is] likely to ... destroy evidence.” Id. ¶ 7. Lefkowitz’s affidavit identified the need for ex parte seizures in cable piracy cases based on numerous examples of defendants in other cases who destroyed or *1313 transferred sales records, pirate decoders, and business assets once provided with notice of legal action. Rl-14, Ex. C at 3-6.

Based on this evidence, the district court granted AT&T’s emergency motion for an ex parte asset freeze and seizure of property on 18 November 2002. The district court stated that AT&T, with the assistance of United States Federal Marshals, was permitted to search Marmer’s Pagosa Court and Deerfield Avenue addresses and

seize [and remove] any and all correspondence with customers, sales invoices, purchase orders, return forms, receipts, bank records, safe deposit box records, proceeds of sales, insurance policies, safes, shipping labels and tax returns of other business records, including all computer terminals, hard drives, servers, disks and tapes in their possession, which plaintiff reasonably believes contain or indicate the names or addresses of distributors, suppliers, manufacturers, and/or purchasers of Decoding Devices or any related equipment, or which contain, indicate or otherwise reflect or pertain to any transactions of any kind involving Decoding Devices or other business activities, and any and all Decoding Devices, and the illicit proceeds of the sales of such Decoding Devices.

Rl-16 at 2.

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Bluebook (online)
381 F.3d 1309, 33 Communications Reg. (P&F) 854, 2004 U.S. App. LEXIS 18300, 2004 WL 1921177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/att-broadband-v-tech-communications-inc-ca11-2004.