Cheers Sports Bar & Grill v. DirecTV, Inc.

563 F. Supp. 2d 812, 2008 U.S. Dist. LEXIS 51240, 2008 WL 2619436
District Court, N.D. Ohio·Decided July 3, 2008·No. Case 3:08 CV 586·Published·Cited by 5 cases

Opinion

MEMORANDUM OPINION

KATZ, District Judge.

This matter is before the Court on the defendant’s motions to dismiss the case (Doc. 4) and to strike a declaration filed with the plaintiffs opposition to the motion to dismiss (Doc. 12). The defendant has also filed an unopposed motion for judicial notice of the fact that it is a California corporation (Doc. 6). This Court has jurisdiction pursuant to 28 U.S.C. § 1332. For *815 the reasons discussed herein, the case is dismissed in its entirety.

I. Background

By the penultimate weekend of the National Football League’s 2007 regular season, the New England Patriots had attained an undefeated record through fifteen contests. The Patriots’ remaining hurdle to becoming one of the NFL’s only teams ever with an undefeated regular season record was the season finale match-up against the New York Giants (“the game”) 1 . The upcoming game drew spectacular hype. However, the game had been slotted to be shown exclusively on the NFL Network, a cable station with limited access to consumers’ home televisions resulting from pricing and distribution disputes that had prevented carriers from picking up the NFL Network. See, e.g., NFL Enterprises LLC v. Comcast Cable Communications, LLC, 51 A.D.3d 52, 851 N.Y.S.2d 551 (N.Y.App.Div.2008); Mark Maske, NFL Network Will Allow Simulcast of Patriots-Giants, Washington Post, Dec. 27, 2007, at E6 (available at http://www. washingtonpost.com/wp-dyn/content/ article/2007/12/26/AR2007122601652.html). NFL Network was available in fewer than forty percent of American homes. See Pats-Giants to be first three-network simulcast game in NFL history, ESPN, com (AP), Dec. 27, 2007 (available at http://sports.espn.go.com/nfl/news/story? id=3169075).

High demand from fans without private access to the NFL Network led the NFL to allow two of the nation’s largest networks — NBC and CBS — to simultaneously broadcast the game. Id. The broadcast of the game could then be seen by anyone with access to a network television station, without any cable payments or membership access requirements. The game went on to become a historic win for the Patriots, a preview of the upcoming NFL Super Bowl XLII, and the most-viewed regular season game in NFL history. Super Bowl Could Set Record for TV Viewers, CNBC, com (AP), Jan. 30, 2008 (available at http:// www.cnbc.com/id/22913751/). The NFL Network’s coverage of the game included six hours of live pre-game coverage and devoted over sixty-five hours of coverage to it. All roads lead to Patriots-Giants on NFL Network and NFL.com, NFL Press Release, Dec. 26, 2007 (available at http:// www.nfl.com/nflnetwork/story7id=09000d5 d8056c7d0). The rematch in Super Bowl *816 XLII just over a month later, when the Giants played a tight game to the end, upsetting the Patriots and giving them an 18-1 record for the season, became the most-viewed Super Bowl in NFL history, and the second most viewed television broadcast in the history of American TV. Record 97.5 million watch Super Bowl XLII, MSNBC.com (AP), Feb. 4, 2008 (available at http://www.msnbc.msn.com/id/ 22992189/).

Defendant DIRECTV, Inc. was one of the carriers who carried and provided paying customers access to NFL Network, including exclusive NFL games. Plaintiff Cheers Sports Bar & Grill maintained a “Commercial Choice Plus” subscription with DIRECTV that included NFL Network. Plaintiff paid Defendant the subscription fee for December. The contract between the parties provided the following relevant section:

CHANGES IN PROGRAMMING SERVICE AND FEES/SERVICE RENEWAL: We [DIRECTV] reserve the right to change the programming packages, programming services, or other services we offer, and our prices or fees, at any time. We may also rearrange, delete, add to, or otherwise change the services. For any changes to the programming packages, prices, or fees that are within our control, we will notify you [the subscriber-Cheers] of the change and its effective date. If the change is not acceptable to you, you may cancel your programming service in whole or in part; provided, however, that if you do cancel service you will not be entitled to a refund of any prepaid subscription amounts paid in connection with any DIRECTV offer or promotion. If you do not cancel your service within 30 days, your continued receipt of any DIRECTV programming service after the effective date of change will be deemed your acceptance of that change, and you will continue to be responsible for payment. DIRECTV programming services that you subscribe to a periodic basis may be renewed automatically, provided we continue to carry the service, unless you contact DIRECTV Customer Service to cancel the services.

Service Agreement at ¶ 7. The agreement also contained a California choice of law provision.

When the NFL decided to simulcast the game on NBC and CBS, it was still also broadcast on NFL Network, and Defendant supplied those broadcasts to Plaintiff. Plaintiff brought this suit before Erie County Court of Common Pleas on December 28, 2007, and it was removed to this Court on March 6, 2008. Plaintiff alleges that Defendant breached the contract, was unjustly enriched by the paid subscription fees for December 2007, and acted in bad faith. Plaintiff seeks damages and declaratory and injunctive relief.

II. Standard of Review

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Cheers Sports Bar & Grill v. DirecTV, Inc., 563 F. Supp. 2d 812, 2008 U.S. Dist. LEXIS 51240, 2008 WL 2619436 (N.D. Ohio 2008).

563 F. Supp. 2d 812 (Cheers Sports Bar & Grill v. DirecTV, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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