DIRECTV v. Loussaert

218 F.R.D. 639, 57 Fed. R. Serv. 3d 798, 2003 U.S. Dist. LEXIS 18017, 2003 WL 22331775
CourtDistrict Court, S.D. Iowa
DecidedOctober 2, 2003
DocketNo. 3:03-CV-40053
StatusPublished
Cited by13 cases

This text of 218 F.R.D. 639 (DIRECTV v. Loussaert) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DIRECTV v. Loussaert, 218 F.R.D. 639, 57 Fed. R. Serv. 3d 798, 2003 U.S. Dist. LEXIS 18017, 2003 WL 22331775 (S.D. Iowa 2003).

Opinion

ORDER GRANTING DEFENDANT EVERSOLL’S MOTION TO SEVER

GRITZNER, District Judge.

This matter comes before the Court on Defendant Eversoll’s Motion to Sever filed June 26, 2003 (Clerk’s No. 10). Defendant asks the Court to sever the action against him pursuant to Federal Rule of Civil Procedure (“Rule”) 42; however, he concedes that the relief he requests is properly pleaded pursuant to Federal Rules of Civil Procedure 20 and 21. The Court addresses the motion accordingly.

FACTS

DIRECTV, a California-based company, develops satellite systems which transmit di[640]*640gitalized signals to homes and businesses nationwide for entertainment purposes. DIRECTV relays digital signals to satellites affixed above the Earth which are then broadcast back to Earth and received by a fixed outdoor satellite dish (“Dish”) designed to capture the signals. The Dish is connected to an indoor satellite receiver which is connected to a television monitor. To protect its signal from unauthorized reception, DIRECTV uses encryption technology to digitally scramble the signal making the signal unusable until it is unscrambled.

Unscrambling is accomplished through a satellite receiver (“Receiver”) which contains a removable and programmable access card (“Card”). The Card allows the opening and closing of those channels offered by DIRECTV. Customers pay a monthly fee to have the Card electronically programmed to unscramble selected channels and programs.

Since DIRECTV’s main revenue source is from paid subscriptions, it has a significant interest in preventing unauthorized receipt and use of DIRECTV programming. Despite encryption technology, individuals within and outside the United States have developed devices and equipment which allow pirated access to DIRECTV’s programming without paying a fee to DIRECTV.

On May 25, 2001, with the assistance of law enforcement, DIRECTV executed writs of seizure upon “Fulfillment Plus”, a mail shipping facility in California used by several major sources of pirate technology. As a result of this and subsequent raids, DIRECTV came into possession of sales records, shipping records, email communications, credit card receipts, and other records which allegedly show the defendants in this action purchased pirate access devices from several pirate technology sources. Specifically, those records indicate that on April 10, 2001, Eversoll allegedly purchased from Canadian Security and Technology an “unlooper” which is a preprinted circuit board device designed to allow surreptitious interception of DIRECTV programming.1 The device was ordered using interstate wire facilities and was shipped by way of the United States Postal Service or commercial mail carrier to Eversoll’s residence at 2223 W. 46th St., Davenport, Iowa.

DIRECTV brought this lawsuit alleging Eversoll and six other defendants violated federal law when they effected unauthorized interception and receipt of Satellite Programming through the use of this illegal satellite decoding device or by manipulation of the satellite system authorized to carry the Satellite Programming. DIRECTV asserts all seven defendants violated 47 U.S.C. § 605(a), 18 U.S.C. § 2511(1)(a) and 18 U.S.C. § 2512(1)(b); and requests statutory damages and injunctive relief. DIRECTV does not allege the defendants named in this action conspired or otherwise acted in concert in purchasing the pirate access devices.

Service has been effected upon all defendants named in this action. Eversoll was personally served on June 9, 2003, at his residence in Davenport, Iowa and answered the Complaint on June 16, 2003.

On June 26, 2003, Eversoll filed this Motion arguing the Court should sever the cause of action against Eversoll from the action against the other six defendants because: (1) this is not a class action; (2) the [641]*641facts against each defendant are distinct and separate and constitute separate claims and causes of action; (3) the only basis for the consolidation of these proceedings is for the plaintiff to save the expense of multiple filing fees; and (4) each defendant will be required to expend additional effort due to the consolidation, having to deal with information and discovery which is pertinent only to other defendants, such as, expert testimony, documents, claims, and depositions.

Eversoll argues he will be prejudiced if he has to defend this matter in the same trial as other defendants due to confusion of issues, additional costs and expenses of a multidefendant trial and the likelihood the jury would fail to distinguish the facts applicable to each defendant. Eversoll further points out that he is the only defendant to demand a jury trial.

Eversoll urges the Court to use its discretion under Rule 21 to drop a party or to sever a claim against a party which was not properly joined under Rule 20.2 In support of severance, Eversoll argues the claims against each defendant do not arise from the same transaction nor is there an allegation that the defendants acted in concert, rather all allegations are for individual acts committed at different times for separate purposes. Eversoll argues DIRECTV’S vague reference to “devices” sent to a California distribution center during a seven month period do not demonstrate that the causes of action arose out of the same transaction or occurrence. Eversoll contends that allowing this joinder ignores the plain meaning of Rule 20.

DIRECTV resists Eversoll’s motion arguing joinder of the defendants in the present action meets the requirements of Rule 20 and is consistent with the primary purpose of the Rule. DIRECTV asserts Rule 20 is afforded a liberal construction to promote convenience at trial and prevent multiple lawsuits. DIRECTV maintains that purpose is achieved in the present action because the claims against all defendants arise out of the same transactions or occurrences and there is a common question of law or fact among all defendants.

DISCUSSION

Federal Rule of Civil Procedure 20(a) states in pertinent part:

All persons ... may be joined in one action as defendants if there is asserted against them jointly, severally, or in the alternative, any right to relief in respect of or arising out of the same transaction, occurrence, or series of transactions or occurrences and if any question of law or fact common to all defendants will arise in the action. A plaintiff or defendant need not be interested in obtaining or defending against all the relief demanded. Judgment may be given for one or more of the plaintiffs according to their respective rights to relief, and against one or more defendants according to their respective liabilities.

Fed.R.Civ.P. 20(a).

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Bluebook (online)
218 F.R.D. 639, 57 Fed. R. Serv. 3d 798, 2003 U.S. Dist. LEXIS 18017, 2003 WL 22331775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/directv-v-loussaert-iasd-2003.