Don King Productions/Kingvision v. Ferreira

950 F. Supp. 286, 97 Daily Journal DAR 1487, 1996 U.S. Dist. LEXIS 19692, 1996 WL 754136
CourtDistrict Court, E.D. California
DecidedDecember 24, 1996
DocketCiv. S-96-0063 WBS/PAN
StatusPublished
Cited by6 cases

This text of 950 F. Supp. 286 (Don King Productions/Kingvision v. Ferreira) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Don King Productions/Kingvision v. Ferreira, 950 F. Supp. 286, 97 Daily Journal DAR 1487, 1996 U.S. Dist. LEXIS 19692, 1996 WL 754136 (E.D. Cal. 1996).

Opinion

MEMORANDUM AND ORDER

SHUBB, Chief Judge.

Third-party defendant Wireless Broadcasting Systems of Sacramento,' dba Pacific West Cable Television (“PWC”), moves for summary judgment on defendant Bruce Doherty’s third-party complaint against it. Fed. R.Civ.P. 56. The issue is whether a person sued under 47 U.S.C. § 553 or § 605 for displaying an unauthorized broadcast of a boxing match to commercial patrons may *288 seek indemnity from a satellite television subscription company for failing to “scramble” the signal. For the reasons stated below, the court holds that no such right of indemnity exists.

I.

BACKGROUND

This action concerns the unauthorized broadcasts of the Chavez v. Lopez boxing match on December 10, 1994. Plaintiff Don King Productions (“Don King”) alleges that it contractually acquired the proprietary rights to distribute, promote, and exhibit the boxing match via closed circuit television. Plaintiff claims it entered into agreements with commercial entities which became entitled as licensees to publicly exhibit the boxing match to patrons in their establishments. Plaintiff sued several parties, including Doherty, for exhibiting the boxing match to patrons without an agreement with plaintiff to do so. It alleged claims under 47 U.S.C. § 553, enacted as part of the Cable Communications Policy Act of 1984, 47 U.S.C. § 605, enacted as part of the Communications Act of 1934 (collectively, the “Act”), as well as state law claims for conversion and intentional interference with prospective economic advantage.

Doherty admits he received the boxing match and displayed it to patrons at his commercial establishment, the Menlo Club. (Third-Party Plaintiffs Response to Statement of Undisputed Facts ¶23.) Doherty further admits he received and displayed the boxing match without prior request or arrangement with either Don King or PWC. (Id. ¶ 14.) He claims, however, that he “involuntarily” received the boxing match at the Menlo Club through the satellite receiving equipment installed by PWC. Because he received the match without having ordered it, he assumed that PWC had made the program available to show to his commercial patrons. (Doherty Deck ¶¶ 12,20.)

■ Doherty has filed a third-party complaint against PWC for “Implied Contractual Indemnity” and “Indemnity for Negligence,” alleging that PWC’s failure to “scramble” the signal for the boxing match has subjected him to liability absent any fault of his own. PWC moves for summary judgment on Doherty’s claims, arguing that the third-party complaint fails as a matter of law.

II.

STANDARD OF REVIEW

Summary judgment is appropriate if the record, read in the light most favorable to the non-moving party, demonstrates no genuine issue of material fact, and that the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986). Material facts are those necessary to the proof or defense of a claim, and are determined by reference to the substantive law. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). At the summary judgment stage the question before the court is whether there are genuine issues for trial. The court does not weigh evidence or assess credibility. Id.

III.

DISCUSSION

A defendant may file, as a third-party plaintiff, a complaint against “a person not a party to the action who is or may be liable to the third-party plaintiff for all or part of the plaintiffs claim against the third-party plaintiff.” Fed.R.Civ.P. 14(a). Doherty states that “the major issue is whether there is [supplemental] jurisdiction enabling the court to adjudicate Doherty’s claims” against PWC. That is not the issue. Only after the court determines that Doherty may seek indemnity can it decide whether it has jurisdiction to adjudicate those claims.

Don King has asserted both federal and state law claims against Doherty. The scope and limitation of Doherty’s right to indemnity for damages resulting from having violated a federal statute is governed by federal law. See Mortgages, Inc. v. U.S. Dist. Court for the Dist. of Nevada, 934 F.2d 209, 212 (9th Cir.1991) (when liability is grounded on a federal statute, the court must look to federal law, not state law, to determine a defendant’s right to indemnity); Gil *289 more v. List & Clark Constr. Co., 866 F.Supp. 1310, 1312-13 (D.Kan.1994) (state law creating right to indemnity or contribution inapplicable where the defendant’s liability for which indemnity is sought arises solely under a federal statute). In contrast, the scope and limitation of his right to indemnity for liability grounded on the state law claims is governed by state law. See Northwest Airlines, Inc. v. Transport Workers Union of Am., 451 U.S. 77, 96-97 n. 38,101 S.Ct. 1571, 1583 n. 38, 67 L.Ed.2d 750 (1981) (acknowledging a right to contribution under state law in cases in which state law supplied the rule of decision). Doherty’s right to indemnity under each set of claims must therefore be analyzed separately. The court assumes for purposes of this analysis that Doherty will be liable under all claims asserted against him.

A. Federal Claims

Doherty argues he is entitled to indemnity from PWG because he relied on PWC to provide him with properly functioning equipment and to block his receipt of programs he was not authorized to view, and PWC’s failure to do so proximately caused his liability under 47 U.S.C. § 553(a)(1) and § 605(a), which prohibit receiving, viewing, and publishing misappropriated signals acquired via satellite. A defendant held liable under a federal statute has a right to indemnity or contribution from another who has also violated the statute only if such right arises through (1) the express or implicit creation of a right of action by Congress, or (2) the power of the courts to formulate federal common law. Mortgages, Inc., 934 F.2d at 212. There are no reported cases addressing the availability of indemnity or contribution under either § 553 or § 605 of the Act.

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Bluebook (online)
950 F. Supp. 286, 97 Daily Journal DAR 1487, 1996 U.S. Dist. LEXIS 19692, 1996 WL 754136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/don-king-productionskingvision-v-ferreira-caed-1996.